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What do I need?

Let’s play a game of "Red Light, Green Light." On the chart below, coverages in RED are required by law in North Carolina. Coverages in YELLOW are not required by law, but the bank or lender who gave you a loan for your car may require that you buy them. Coverages in GREEN are optional, and you should discuss whether to purchase them with your parents and insurance agent.

Type of Coverage What does it cover?
Red Light
Liability Coverage: Bodily Injury and Property Damage
(required by law)
Bodily Injury Liability: This coverage will pay for injuries and related losses that you cause to other people. Examples include medical and funeral expenses, lost wages, physical disability, rehabilitation, pain and suffering, law suits and legal expenses.
Property Damage Liability: This coverage will pay for damages to other people’s property. Examples include damage to another person’s automobile or other property.
Red Light
Uninsured/Underinsured Motorist Coverage
(required by law)
Uninsured Motorists Coverage (UM): This coverage will provide protection when you suffer injuries and/or property damage caused by an uninsured driver.
Underinsured Motorist Coverage (UIM): This coverage will provide protection when you suffer injuries caused by another driver who does not have enough auto liability insurance to cover your losses. North Carolina requires this coverage to pay the difference between the at-fault driver’s liability limits and your own Underinsured Motorist limits. UIM coverage does not provide protection against property damage.
Yellow Light
Collision Coverage
This coverage pays for damage to your own car, caused by hitting another vehicle, backing into a light pole, etc.
Yellow Light
Comprehensive Coverage
This coverage (officially called “Other than Collision”) pays for damage to your car caused by things like theft, hitting an animal or a rock hitting the windshield.
Green Light
Medical Payments Coverage
This coverage pays for necessary and reasonable medical and funeral services as a result of an automobile accident. Medical payments coverage will be provided whether you or someone else caused the accident.