What Does Car Insurance Cover?

When you take out a Greensboro car insurance policy, it's recommended that you read it through completely so you have a good idea of exactly what's covered and what's not. There's no simple answer to the question, “what does car insurance cover,” because each policy is unique in that it's drawn up to fit your specific wants and needs.

For starters, your Greensboro car insurance policy is required by North Carolina state law to contain at least a minimum of third-party liability coverage. Here in NC that minimum is $30K per person for bodily injury costs, $60K for all third-party injuries in a single incident and $25K for loss or damage to third-party property.

It's Not Enough

The above-stated mandated liability minimums only protect third parties suffering losses as a result of an accident for which you are held liable. Considering the high rates of today's medical costs and property values, including replacement of totaled vehicles, these minimums are woefully low. Experts agree that your liability coverage should be five or ten times the required minimums. Many recommend purchasing a $1M umbrella policy, especially if you have significant assets that may be at risk in a liability lawsuit.

Other Policy Protections

One other requirement mandated by state law is a minimum amount of protection against losses suffered as the result of liability by a driver who is uninsured or underinsured. Beyond these insurance requirements, you have several options for choosing policy protections that cover other than liability losses. Here are some of the most typical coverage options for those drivers who choose to add them to their basic coverage:

• Medical Payments or MedPay – pays toward losses suffered by you or any of your passengers as the result of a vehicle accident.
• Collision Protection – pays toward repair or replacement of your vehicle caused by a collision. If the accident is another driver's fault, their liability coverage should pay first and your collision protection should pay in addition if needed.
• Comprehensive Coverage – pays toward repair or replacement of your vehicle when damaged or loss due to something other than a collision with another vehicle or object. This includes fire, vandalism, theft, falling objects, flood, earthquake and more.