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Return To: Auto Insurance – The Ultimate Guide
Full coverage auto insurance is the financial protection you need to pay for your car. When you get into accidents that injure other drivers or damage people’s properties, you need financial assistance to cover the expenses.
This type of auto insurance combines individual liability policies with comprehensive coverage to maximize the situations your insurer can pay for. The North Carolina Division of Motor Vehicles (NCDMV) mandates liability policies and has set minimum coverage for any bodily or property damage. Comprehensive coverage is optional, which you may get for your vehicle if it fits your needs.
You need to make the right decision when choosing the appropriate car insurance. Be sure that your policies meet state mandates and cover the situations that you are prone to. We have all you need to know about auto insurance to help you get the protection your car needs.
What Does Full Coverage Insurance Cover?
Full coverage auto insurance consists of multiple policies that protect you from more situations than single policies cover. It includes standard liability insurance coverage and optional coverage. Here is a glance at the standard and (some) optional coverage you may apply for when getting full coverage auto insurance:
Standard Auto Insurance Coverages
|Coverage Type||Pays For|
|Bodily injury liability||Medical bills of injuries or deaths you caused by driving|
|Property damage liability||Repair bills of damages you caused to another’s property|
|Uninsured and underinsured motorist bodily injury liability||Medical bills of uninsured drivers|
|Uninsured and underinsured motorist property damage liability||Repair bills of uninsured drivers|
- Bodily Injury Liability: When you are at fault for a road accident that injures or kills a person, this liability coverage pays for the victim’s medical expenses. As a standard coverage, all auto insurance policies in the state include bodily injury liability coverage. The minimum coverage amount for bodily injury liability insurance per NCDMV guidelines is $30,000 per person.
- Property Damage Liability: In the event that you are at fault for a car accident, this liability policy pays for the damage that your car caused to another person’s property. This may also cover the financial costs when you face lawsuits for the damage you caused. North Carolina laws require a minimum coverage of $25,000 for property damage.
- Uninsured and Underinsured Motorist Bodily Injury (UMBI) Liability: North Carolina law requires insurance policies for uninsured and underinsured motorists. When you get injured from a vehicular accident, for which you are not at fault, the driver’s liability insurance pays for your medical expenses. When they are uninsured, UMBI liability helps cover your expenses.
- Uninsured and Underinsured Motorist Property Damage (UMPD) Liability: North Carolina law requires UMPD. This policy protects you against uninsured or underinsured motorists who might cause damage to your property by covering repair costs.
Optional Car Insurance Coverages
|Coverage Type||Pays For|
|Comprehensive coverage||Damage due to vandalism or natural disasters|
|Collision coverage||Repair costs due to crashes into other vehicles or objects|
|Rental reimbursement||Rental costs when your car is under maintenance|
|Mechanical breakdown insurance||Repair costs due to major car failures|
|Roadside assistance||Labor costs for towing your car|
- Comprehensive Coverage: This policy covers costs when your car suffers damages from circumstances you cannot control. Some examples of such events include accidents involving animals, weather damage from storms, and vandalism or theft. Comprehensive coverage has limits to the amount it pays for a covered item and does not include collision damage.
- Collision Coverage: This specific policy pays for repair costs when your vehicle crashes into other cars or objects like trees, poles, street lamps, or fences. Note that collision coverage covers damages to your vehicle, not the damage the crash caused. For instance, if you crashed into another person’s car, your property damage liability will pay for the damages.
- Rental Reimbursement: When your car is undergoing repairs in a shop, rental reimbursement covers the expenses for renting a car. Insurance companies usually set limits for this policy based on the type of car that you can rent. Rental reimbursement policies also set limits to the number of days you can rent a car and apply dollar amounts to those days.
- Mechanical Breakdown Insurance (MBI): MBI covers the repair expenses when your car experiences major failures. Some major vehicle system malfunctions that this policy pays for include faulty electrical systems, slow or bad brakes, and transmission troubles.
- Roadside Assistance: This policy pays for the services you need when your car battery dies, when you lock yourself out of your car, or when you get a flat tire. The average cost of towing services in North Carolina is between $70-$125, which may add extra fees at $2-$5 per mile to the final service cost.
How Much Is Full Coverage Auto Insurance?
The average annual full coverage car insurance coverage in North Carolina as of March 2021 ranges between $835 and $1,633. This average range is based on the top 10 car insurance carriers in the state.
Other factors that may affect the cost of your full coverage auto insurance include:
- Age: Older drivers with more experience may pay for less insurance than younger drivers.
- Credit Score: You may get cheaper premiums when the insurance company of your choice favors your credit score.
- Driving Record: You may have to pay higher prices when you have a history of vehicular accidents.
- Zip Code: Insurers consider your neighborhood when fixing a price. Some areas may be prone to accidents or crime.
Insurers also consider these factors in determining the value of your car should it get totaled. Be sure to educate yourself about auto insurance and why the state of North Carolina requires you to apply for such protections.
Full coverage auto insurance is the combination of different policies that financially protect your car from accidents. Per North Carolina law, there are standard coverages for liabilities and optional coverages, like comprehensive and collision coverage, that you can include to expand your protection. The amount you pay for full auto coverage will depend on a number of factors. You will pay more if you decide to include several policies in your auto insurance. Prices may further vary when you consider your driving experience and location. Get an auto insurance quote today to assess how much you need to invest in protecting your car.