North Carolina: State Auto Insurance Requirements

North Carolina state auto insurance requirements state that all drivers must have a minimum level of coverage in place to drive legally. Third party liability coverage is required for all drivers, and this type of coverage pays pays benefits to the occupants of the other vehicle involved in an accident. Uninsured and underinsured motorist coverage is also required in this state.

Bodily injury liability insurance pays for the medical bills and lost wages incurred by accident victims. This part of the policy also pays out a funeral benefit if the accident resulted in one or more fatalities. The minimum level of protection required by law is $30,000 to pay for injuries and economic loss suffered by one person and $60,000 to pay for all injuries and damages sustained as the result of the accident.

Along with bodily injury liability insurance, car insurance customers in NC must also buy property damage liability protection. This is the part of the policy which pays for the cost of repairs to the other driver’s vehicle following an accident. It also pays to repair or replace public property damaged or destroyed in the accident, such as mail boxes, sign posts, fences and guard rails. The minimum amount of property damage liability coverage required by law is $25,000.

Uninsured motorist protection pays out when the at-fault driver in an accident either does not have coverage or does not have enough protection to pay for the amount of damages he or she caused. The minimum level of coverage required is the same as for bodily injury liability insurance ($25,000/$50,000 respectively).



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