Why do I need auto insurance?

Because it helps you protect yourself financially.

Auto insurance protects you against the significant and potentially huge costs involved with auto accidents and other risks of owning or driving a car.

Because it’s the law.

North Carolina motor vehicle law requires all drivers to have auto liability coverage. If you cause an accident, auto liability coverage protects other individuals for whom you have caused property damage and/or bodily injury. You will have separate limits of liability per person and per accident. Motor vehicle law requires drivers to have liability limits of at least 30/60/25. This means that, for any single accident that you cause, your policy would pay up to a maximum of:

  • $30,000 to any one person injured; or
  • $60,000 to all injured persons combined; and
  • $25,000 for damage for others’ damaged property.

Keep in mind, liability coverage does NOT cover your own vehicle or injuries. Also, the required minimum liability limits might not provide enough coverage to pay for others’ injuries and property damage for which you are legally responsible. You, your parents and your insurance agent should discuss your personal situation to determine how much liability coverage you need.

Because if you drive without insurance…

  • You could be ticketed and fined.
  • Your vehicle registration could be suspended.
  • Your driver’s license could be suspended.
  • Your vehicle could be impounded.
  • If you cause an accident, you or your parents will not have insurance to pay for injuries and property damage that you cause to others.
  • You may end up paying more when you do purchase coverage. Most insurers charge higher rates for previously uninsured drivers.

Remember – always pay your premium on time!

If you do not pay your bill on or before the due date, your policy can be cancelled.