North Carolina Car Insurance Guide

Drivers across the nation take out auto insurance policies each day. But did you know that your state's regulations can affect how much you pay annually? In fact, your state insurance laws are likely different from those in neighboring states. Whether you're seeking a new policy or are simply brushing up on local regulations, make sure your policy is comprehensive and provides you with the best coverage to meet your needs. Consider your state's guidelines as a starting point; laws can set minimums for coverage, but individual consumers must decide the extent to which they need insurance. Remember that if you are liable for property damage or medical costs, you could face extensive out-of-pocket expenses if your insurance isn't comprehensive.

Insurance regulations in the Tar Heel state

The state of North Carolina sets mandatory minimums for insurance coverage. To register a vehicle in the state, you will be required to prove that you have insurance - and your insurer is obligated to provide you with at least this amount of coverage:

• $30,000 to cover injury or death to a single person in an accident
• $60,000 to cover injury or death to more than one person in an accident
• $25,000 to cover property damage in an accident

Again, remember that these are minimum standards and should be used as a starting point for determining coverage. Think of it this way: if you have minimum coverage, are in an accident and are liable for $50,000 in property damage, you will be responsible for $25,000 beyond what your insurance will provide. You could be surprised how affordable extra coverage would be. Make sure you go over all of your options with your insurance agent.

When driving in North Carolina, keep proof of insurance with you in your vehicle at all times. The easiest way to do this is by getting a copy of your insurance card or certificate and putting it your glove box. You also can satisfy the proof of insurance requirement by having the name of your insurance company and the policy number in your car. Should you fail to meet the state's requirements, your license could be suspended and you could face penalties. If for some reason your coverage lapses, make sure you rectify the situation - if you drive without a license, you could be subject to extremely severe penalties and fines.

Consumer tips

When considering a new policy, be sure to follow these consumer tips:

• To verify that you're receiving the best coverage for your money, you should seek out competitive quotes from several different insurance companies. The Internet is making this a particularly consumer-friendly process. Be sure to look over not only the price of the insurance, but also the extent of the coverage you'll be receiving.
• If cost is an issue, you may want to consider raising your deductible. This will result in savings on your insurance premium - but remember that you will end up paying more out-of-pocket in the event that you file a claim.
• Your personal credit history will have an effect on your auto insurance rates. If you raise your credit score, you could find savings.