North Carolina drivers are able to purchase auto insurance in two different forms. These two types of auto insurance are bodily injury insurance and property damage liability insurance. With a bodily injury insurance policy, a driver in North Carolina is covered if he or she accidentally injures someone while on the road. On the other hand, property damage insurance covers the insured driver if he or she damages property in the accident.
The regulations of North Carolina automobile insurance are fairly simple to understand. Basically, the insurance company takes financial responsibility for the insured driver and pays for the expenses the driver incurs as the result of an accident the driver cause.
The liability limits of North Carolina auto insurance are 30/60/25. This means insurance companies in North Carolina must offer drivers insurance coverage of at least $30,000 per person for bodily injuries. In addition, companies must offer $60,000 for bodily injuries that occur because of an accident, though this coverage is on a per accident basis. North Carolina drivers are also required to carry a minimum of $25,000 for property damage.
Bodily Injury Liability, which is referred to as BI insurance, is a form of insurance that is mandated at a minimum of $30,000 per person and $60,000 per accident in North Carolina. This insurance is paid when the person with the insurance coverage is at fault for the accident and when he or she needs to make payments for the accidental injury or death to the other driver. These costs are also covered in the event of injury or death of passengers or pedestrians involved in the accident.
Property Damage, or PD for short, must be in place with a minimum of $25,000 of coverage per accident. With Property Damage insurance in place, the insured driver is covered if he or she causes an accident or if any property is damaged and needs to be repaired or replaced.
In order for a North Carolina driver to register a vehicle, he or she must present proof of insurance. In addition, North Carolina law requires drivers to have insurance in place or to pay for any damages they cause in an accident from out of their own pockets. There are many methods a driver in North Carolina can use to prove that he or she has adequate insurance coverage is in place. In addition to using an insurance card to prove coverage, drivers in North Carolina may also show a temporary insurance card in order to demonstrate proof.
A North Carolina driver may also prove the he or she has proper coverage with the help of a premium receipt or with an insurance binder, which must be issued by an authorized insurance agent. A current declarations page from the liability insurance policy may also be used or the driver may present the actual policy. A certificate of liability insurance, which is issued from an authorized agent or an insurer, may be used to prove coverage as well.
If a driver in North Carolina has purchased a new vehicle within the past 60 days, he or she can also prove insurance by showing that valid insurance coverage for the vehicle that was replaced is still in place. When renting a vehicle, the driver in North Carolina must present a copy of his or her rental agreement in order to show that the vehicle is properly covered.