An automobile is an expensive asset used in daily life, and there are a lot of auto insurance policies out there to help you protect it. Regardless of the type of vehicle you purchase, it’s important to know how auto insurance works.
Auto Insurance: Required by Law
According to a study conducted by the Insurance Research Council, in 2019 up to 13% of drivers were uninsured. The state of North Carolina is clear-cut and dry regarding auto insurance; if you live here, it is required by law to have it. The exact terminology is known as a continuous liability insurance policy. Failure to procure this can result in fines and other forms of legal action, such as the forceful revocation of your license plate. Insurance companies are also required to report drivers who fail to abide by these laws and policies.
Out-of-state policies are not accepted as a substitute. In short, without auto insurance, you’re risking legal ramifications and the well-being of other drivers on the road. At the very least, it’s negligent and reckless.
But what sort of insurance policy should you purchase to cover your vehicle? And what should you expect?
Know Your Coverage: What’s Included in North Carolina Auto Insurance
When purchasing an auto insurance policy, it’s necessary to know what it covers. You don’t want to be saddled with a policy that doesn’t apply to your situation or vehicle. Each of the following policies is important in helping you protect yourself, vehicle, passengers, and other drivers. Accidents can happen at any time, but with the right plan, you’ll be better prepared.
The following are typical components of basic auto insurance:
- Coverage For Accident Accountability
You are required by law in North Carolina to purchase a minimum amount of liability coverage, or accident accountability. This type of coverage includes two different sub-policies such as one for bodily injury and another for property damage. Both are intended to protect the lives and property of other drivers.
- Coverage for Drivers with Minimal or No Insurance
While it’s lawful for a driver in North Carolina to have insurance, you still run the chance of being hit by someone that has no insurance at all or has insurance that just isn’t enough to take care of all costs. This is where Underinsured Motorists Coverage can step in to lighten the financial load.
- Comprehensive For Non-Collision Incidents
Out of all the different policies filed under basic auto insurance, this is one of the most popular. In the United States, 78% of insured drivers usually choose to buy this style of coverage in addition to Liability Coverage. Officially known as “Comprehensive Coverage,” these policies deal with replacing or repairing a vehicle that is damaged in a non-collision incident.
- Collision Incident Coverage
This policy is straightforward; If you get into a collision with another driver or hit hard objects in a collision, it helps you cover the cost of any procured damages.
- Coverage For Medical Care
In the case of any physical injury to you, your passengers, and other drivers in an automotive accident, coverage for medical payments can help associated costs. This can include physical therapy, surgery, and other medical procedures.
What Auto Insurance Doesn’t Cover
The point of auto insurance is to give you peace of mind when you’re on the road, rather than be a burden. Just as it’s important to know what is included in a basic auto insurance policy, it is equally vital to know what it doesn’t include. You don’t want any unexpected twists when you least expect them.
Auto Insurance does not cover you in the following instances:
- Damage due to normal wear and tear
- Intentional damage
- Damage due to another reckless driver in control of your vehicle
- Personal property stored inside the vehicle that might be stolen
- Added modifications
- Getting in an accident while driving a vehicle not registered to you
- Rental car reimbursements
- Damage due to natural disasters
Each of these has its reason for not being fully covered by automotive insurance. For example, items or modifications to your car would be considered personal property. Natural disasters like hurricanes would be considered weather conditions where it’s up to the owner to protect their asset. Just because your policy says you have “full coverage,” doesn’t always mean you’ll be protected in every scenario. It’s critical for you as a driver to know what you’re getting into before purchasing.
The Huneycutt Group Insurance Can Help
Choosing the right auto insurance policy takes knowledge and guidance. The Huneycutt Group is one agency you can depend on to help you decide on the right course of action. We know that auto insurance must be customized to fit your individual needs and work with you to make sure your assets are properly protected. Our team also specializes in auto insurance for Motorcycles and R/Vs too! Regardless of if it’s on the phone or face-to-face, we will take care of you.