Every state has the power to set its own rules for car insurance, within certain limits. Risks and costs of operating an insurance business also have a bearing on the total cost drivers pay.
This all adds up to a slightly different set of rules in each state. Here are some specifics for North Carolina.
How much is insurance?
According to US News, the rates from the six cheapest car insurance companies in North Carolina range from $722 to $1,734. Overall this is significantly lower than the national average.
Of course, when it comes to insurance, averages do not typically apply to specific situations. You should also expect many other factors to change your price:
- Your age
- Your driving record
- Where you live
- The level of coverage you select
What does insurance do?
Much of the money you pay to your insurance company essentially goes into a fund. If you get into an accident that is not your fault, you should be able to benefit from coverage — likely that of the other driver.
Of course, things do not always work out perfectly. Additionally, insurance companies might attempt to minimize your claim. These are among the most common reasons people choose to open personal injury cases.
What is the minimum coverage level?
North Carolina is an at-fault state with a somewhat strict approach to defining who is to blame for an accident. However, if the accident is not your responsibility, insurance should pay for a minimum of $30,000 per person and a total of $60,000 per accident for bodily injury, $25,000 for property damage and $25,000 to cover the liability of uninsured motorists.
These coverage levels bring up the final point and one of the most common reasons for injury cases: Insurance simply does not always cover the costs of severe injuries. Although $30,000 may seem like a lot of money, even a moderate burn could cost you well over $100,000. Should you pay for that, or should that be the responsibility of the person who caused your accident?
