NORTH CAROLINA'S ONLINE RESOURCE FOR BUSINESS AUTO INSURANCE

Whether you want to find out what coverages are available, what factors affect NC Business Auto Insurance Premiums, or simply obtain a NC Business Auto Insurance Quote, you’ve come to the right place.

DO I NEED NORTH CAROLINA BUSINESS AUTO INSURANCE?

North Carolina Business Auto Insurance is something that businesses must have in North Carolina, if that business owns and/or operates vehicles. The problem that many NC Businesses face is a lack of understanding of what coverages are, and what coverages are needed. The North Carolina Financial Responsibility Laws require that Business Automobile Liability coverage be maintained. The minimum coverage requirements are as follows:

  • $30,000 Bodily Injury Per Person / $60,000 Bodily Injury Per Accident
  • $25,000 for Property Damage

Additionally, North Carolina now requires that all licensed drivers carry Uninsured/Underinsured Motorist Coverage at least equal to the highest liability limit on any one vehicle insured under the policy.

Now that you know what the law requires…let’s take a better look at the actual coverages available on a North Carolina Auto Insurance Policy.

Click a section below for more information.

BODILY INJURY LIABILITY & PROPERTY DAMAGE COMBINED (CSL)

Bodily Injury Liability coverage will pay for damages to other people’s property as a result of an accident caused by you or another covered driver. Here are some examples of damages covered under the Bodily Injury Liability of your policy:

  • Medical Expenses
  • Disability
  • Rehabilitation
  • Law suit settlements & Legal Fees

Bodily Injury Example: So What Limits Do I Need? That is the question that only you can answer with the help of you Agent. When speaking with customers, this is a story that is often used at ALLCHOICE. You are involved in an accident (which is your fault). You ran a stop light and struck another car that contained three (3) people. All three people were injured and taken to the hospital. The driver suffered numerous injuries, including a broken arm. The other passengers all sustained minor injuries. It is possible that North Carolina’s minimum Bodily Injury Limits would pay for the hospital bills (lets assume they did). However, the driver (who suffered a broken arm) just happens to be Brain Surgeon!!! How much would a simple month away from his occupation cost in terms of lost wages? Are those minimum liability limits still sufficient?

Property Damage Liability will pay for damages to other people’s property as a result of an accident that is caused by you or another covered driver. Here are some examples of damages covered under the Property Damage Liability of your policy.

  • Vehicle Repair
  • Vehicle Actual Cash Value
  • Damage to other Real Property

Property Damage Liability Example: So What Limits Do I Need? That is the question that can only be answered by you with the help of your agent. Let’s continue with our same hypothetical accident from “Bodily Injury”. The Brain Surgeon that you hit was driving a 2009 Mercedes CLS550 (Sticker Price $70,000 +). North Carolina requires you carry a minimum of $25,000 Property Damage Liability. That leaves a very large shortfall ($70,000 – $25,000 = $45,000) between what your insurance will pay for and what you will have to pay “out of pocket”! Are those minimum liability limits still sufficient?

Unlike NC Personal Auto Insurance, most Insurance Carriers that carry Business Auto Insurance in North Carolina offer “Single Limits” of Liability opposed to the “split limits” found on the NC Personal Auto Insurance Policy.  Therefore, instead of seeing Bodily Injury and Property Damage Liability as separate items (30K Per Person / 60K Per Accident Bodily Injury & 25K Property Damage), you are more likely to see $300,000 Combined Single Limit Liability (CSL).

HIRED & NON-OWNED LIABILITY COVERAGE

Hired & Non-owned Liability Coverage is specific to Business Auto Insurance.  ALLCHOICE Insurance advises all businesses to carry some form of Hired & Non-owned Liability Coverage.

Hired & Non-owned Liability Coverage extends your insurance policy’s Liability Coverages to any auto that you “Hire” or any auto that is used in the by your business that the business does not own.  Let’s look at an example!

You, as the business owner, rent a car while out of town on business matters.  You are in an at-fault accident.  The person who you injure has the right to hold you (the person) as well as the business liable for any damages.  A more common example for small businesses is when you ask an employee to “run” to the bank to make a deposit.  Should that employee be involved in an accident, the company could be held liable for any damages since the employee was operating on behalf of the company.

COLLISION COVERAGE

Collision means physical damage to YOUR covered vehicle caused by an impact with another vehicle or object. Collision Coverage will pay the lesser of the cost of repair or the ACV (Actual Cash Value) of your automobile. Collision Coverage is an optional coverage under the North Carolina Business Auto Insurance Policy. However, you may be required to carry Collision Coverage if you have financed your vehicle.

COMPREHENSIVE COVERAGE (OR OTHER THAN COLLISION)

Comprehensive Coverage pays the cost of repair of ACV of your automobile when damage is caused to your covered vehicle by something “other than collision”. Here are some examples:

  • Fire
  • Theft or Larceny
  • Contact with an animal

Comprehensive Coverage is an optional coverage under the North Carolina Business Auto Insurance Policy. However, you may be required to carry Comprehensive Coverage if you have financed your vehicle.

MEDICAL PAYMENTS

Medical Payments Coverage pays for reasonable expenses (medical or funeral) due to an automobile accident. Who is covered?

  • You or any family member while occupying any automobile, or as a pedestrian when struck by a motor vehicle
  • Any other person while occupying your covered automobile or any vehicle driven by you or a family member

Medical Payments Coverage is an optional coverage under the North Carolina Business Auto Insurance Policy.

UNINSURED/UNDERINSURED MOTORISTS COVERAGE (UM/UIM)

Uninsured Motorist coverage provides protection for YOU when an uninsured driver injures you or another covered individual (when that driver is at fault). This coverage also provides protection for damage to YOUR property.

Underinsured Motorists coverage provides protection when an underinsured driver causes injury to a covered individual (when that driver is at fault). An underinsured driver is defined as one whose limits of liability are less than your UIM Limits, and not enough to cover losses of the people the underinsured driver injures.

TOWING AND LABOR

Towing & Labor Coverage pays for towing and labor costs each time your covered automobile or any non-owned automobile is disabled or the keys are lost, broken or accidentally locked in the car.

EXTENDED TRANSPORTATION EXPENSE COVERAGE (RENTAL REIMBURSEMENT)

This coverage will pay transportation expenses incurred by you or loss of use expenses for a non-owned vehicle for which you become legally responsible.

NC BUSINESS AUTO INSURANCE QUOTES (BY CITY)