Understanding How Comprehensive Coverage Works

When buying car insurance for a vehicle registered in North Carolina there are several things you should know before deciding what type and how much insurance you want to place on your vehicle. A well-established insurance agency should be able to help you understand what may be needed for your own car insurance requirements, depending on your personal situation, and you shouldn't hesitate to seek the free advice they can offer. In the meantime, here's some basic information that may help you understand the options you'll be facing when purchasing a car insurance policy.

What's Required

In NC, known as a car accident "fault" state (as opposed to a "no-fault" state), if you're found legally at fault for causing a vehicle accident you are then held legally responsible for any liability caused in the way of property damage, bodily injury or the death of any others involved. Financial payment for these damages is usually paid through your car insurance company, which is precisely why every car owner should have adequate auto insurance coverage in force. NC law requires that every driver registering a vehicle for road use must have a minimum amount of liability insurance in force. In this state, minimum liability coverage amounts are:

• $30,000 per person paid toward bodily injury
• $60,000 per accident paid toward all bodily injury claims
• $25,000 per accident paid toward all property damage claims

Personal Damages

Note that liability coverage provides no protection to you for your own personal losses in the way of injury or property damage, including damage to your vehicle. These types of coverage are available, but only as options that can be added on to your required liability coverage. An exception to the optional nature of this additional coverage is if your vehicle is being financed through a bank or other lending institution, in which case they may require you to obtain them in order to protect their own financial interests in your vehicle.

Collision and Comprehensive

Collision insurance coverage pays when your vehicle is involved in a collision, either with another vehicle or a stationary object such as a fence, tree or power pole.

Comprehensive insurance coverage pays for losses involving your vehicle caused by other than a collision. Examples include:

• Theft or vandalism
• Fire
• Falling objects
• Damage from a bird or other animal
• Weather-related damage such as hail or flood
• Broken glass, such as from a nearby explosion