North Carolina Auto Insurance Minimum Coverages

On January 1, 2009, North Carolina changed their auto insurance laws once again.  The big changes were increases to the liability coverage that we will explain in more detail.  If you’re driving in the state of North Carolina, please be aware of these changes.

Liability Insurance
North Carolina now says that drivers must have a minimum of $30,000 in bodily injury liability per person with $60,000 bodily injury liability per accident and $25,000 minimum coverage for property damage.  Without these coverages, an at-fault driver could be liable for a lot of money.

Bodily Injury Liability Breakdown
Bodily injury is divided into two distinct parts:  bodily injury liability for one person; bodily injury liability per accident.  If you purchase the state minimums at 30/60/25, the most a car insurance company will pay for all bodily injuries is $60,000.  Legal assistance is typically covered.  And also note that this coverage will not pay out to the policy holder or other members of your policy.  You must purchase personal injury protection for that coverage.

Property Damage Liability Breakdown
Property damage liability is in place to make sure property (usually a car, but can be fences, mailboxes, etc) of the driver who isn’t at-fault is repaired by at-fault policy holder’s insurance company.  Remember that this coverage will not apply to your property as a policy holder, only a party found not at fault.  The state minimum is now set at $25,000 and drivers should consider the implications of being at fault with an expensive vehicle.  A new Mercedes costs a lot more than $25,000.  Experts will say that this coverage should be around $100,000 to avoid being liable for an expensive repair.

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