In North Carolina, auto insurance requirements are regulated by state law to ensure drivers have adequate coverage in case of accidents or other incidents on the road. To drive legally in North Carolina, you must maintain minimum auto insurance coverage, including liability insurance.
Auto liability insurance may help pay to repair or replace someone else’s property if you cause damage in an accident. It may also help pay the other driver’s medical bills for accident-related injuries. A liability insurance policy pays only to its limit, so your agent may recommend purchasing more than North Carolina’s minimum required amount of this essential coverage. 
If you finance or lease a vehicle, your lienholder can impose additional insurance requirements, which may include the following:
- Uninsured/underinsured motorist coverage may help provide financial protection if you are the victim of a hit-and-run accident or in an accident with a driver with no or insufficient insurance to pay for the damages.
- Comprehensive coverage may help pay for damage to your vehicle caused by noncollision incidents, such as theft, vandalism or natural disasters.
- Collision coverage may help pay for damage to your vehicle if you’re in an accident with another car or object.
- Guaranteed asset protection (GAP) coverage can help pay off your financed or leased vehicle if it is a total loss after a covered accident or incident.
How to Choose Auto Insurance
When determining how much auto insurance you need in North Carolina, consider factors such as your budget, the value of your assets, driving habits and risk tolerance. While choosing the minimum required coverage may save you money in the short term, it could leave you financially vulnerable if you’re involved in a severe accident.
Consult a local insurance agent who can provide personalized advice based on your circumstances when evaluating your auto insurance options. They can help you evaluate your needs and recommend coverage that aligns with your financial situation and risk tolerance.
Contact Us
At Jones-Byrd Insurance Agency in Dunn, North Carolina, our team understands the state’s minimum auto insurance liability requirements. We can help you get car insurance coverage that complies with local laws and meets your lender’s requirements.
Contact us today to build an auto insurance plan tailored to your needs. Our agents can help you compare quotes from numerous reputable insurers for the ideal price and value combination.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.