Charlotte Insurance: Auto Insurance Basics

The minute you purchase your first car, continually searching for the best and cheapest auto insurance coverage becomes a reality. Since Charlotte insurance auto coverage is a fact of life, it is best to know as much about it as possible in order to make the most informed decision when choosing your policy. What kind of coverage goes into an auto insurance policy? How much coverage do you need specifically and what are the North Carolina requirements for auto insurance? Continue reading to find out!

Auto Insurance Coverage Breakdown:

  • Liability Coverage – Did you make a mistake driving and cause an accident and damage to another vehicle? This is where liability coverage steps in. It covers liability and expenses when you are at fault, but only to people you hit not those traveling in your car.
  • Property Damage Liability – This type of liability pays for damage to the other car if you are at fault in an accident. 
  • Bodily Injury Liability (BIL) – This portion of liability coverage pays for medical expenses of those injured in a crash that you caused. BIL and Property Damage Liability are commonly written into the policy with a three number code such as 20/50/10 (first two #’s refer to BIL and the third refers to property damage). These numbers explain the maximum amount of coverage which in this case would be $20,000 for a single person injured, $50,000 for multiple people injured and $10,000 for damages to the other car. 
  • Personal Injury Protection (PIP) – This covers you and your passengers’ medical expenses resulting from an accident.
  • Collision – This type of coverage is for any costs to repair damages to your car from an auto accident.
  • Uninsured/Underinsured Motorist Coverage – With the amount of people driving with little to no auto insurance coverage, this comes in handy to cover any expenses they may cause in an accident and can’t cover. 
  • Comprehensive – If your car were to be stolen or damaged by something other than an accident, this would handle the costs. 

How much insurance coverage do you need?

Each individual’s circumstances vary and therefore their needs for auto insurance coverage vary accordingly. Often times if you have health insurance, only limited PIP coverage is necessary because health coverage is there to handle your medical expenses. Uninsured Motorist coverage is an important policy because it is a safeguard against major costs that could occur which the other driver will not be able to cover. Therefore, it is wise to purchase a lot of coverage as it is relatively inexpensive in most states and a helpful safety net. 

Another piece of wise advice is to choose a high deductible (as much as you can afford) as it will lower your premium cost. Car insurance is for costly damages, not minor repairs (don’t continuously file small claims as it will raise your premiums). Therefore high deductibles may end up saving you money in the long-run since you are saving on your monthly premium.  Finally, always look into your specific state’s minimum requirements as often times that is the proper amount of coverage you tend to need. North Carolina’s requirements are as follows:

North Carolina Minimum Insurance Requirements   
Bodily Injury Liability: $30,000/$60,000 Limit
Property Damage Liability: $25,000 Limit
Uninsured Motorist Bodily Injury: $30,000/$60,000 Limit
Uninsured Motorist Property Damage: $25,000 Limit
*New limit requirement effective: January 1, 2009

Still have more questions about auto policies or want to learn of ways to save on your Charlotte insurance? Call Spivey insurance group today at 877-318-5951 to speak to one of our friendly agents!

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