North Carolina Auto Insurance

Under North Carolina law, insurance companies may exclude a driver in your household from inclusion on your auto insurance policy.  In fact, the auto insurance company may make this request for persons with a poor driving history which pose a higher risk.  A college student who lives away from home and does not have access to a vehicle may be excluded.  If a driver is excluded from the policy, they have no liability coverage but you still have the liability exposure if they drive one of your vehicles and get in an accident. These exclusions will be listed in the exclusion section of your automobile insurance policy with all the other circumstances which will allow the insurance company to refuse to pay a claim.

If you have an auto insurance policy or have had one in the past which has lapsed, you must replace it immediately.  North Caroline allows you ten days to remedy a dropped minimum automobile liability policy.  Some insurance companies will give you better rates if you insure for more than the state mandatory minimums.  Lack of prior insurance coverage due to never owning a car cannot be held against you as long as you have never violated the North Carolina laws regarding minimum insurance requirements.

The state of North Carolina allows insurance companies to check your credit history when they set your premiums and determine whether they will insure you.  The company may ask you to explain any bankruptcies, judgments, or credit problems.  This information will also determine the payment intervals such as monthly premiums, every six months or annual premiums.  The insurance company will also use other criteria such as your driving record, age, gender, marital status, type of vehicle you drive and the area where you live to determine your premium rates.  Paying your bills on time improves your credit rating and may also reduce your premiums.  It also shows you are reliable when paying your bills.

North Carolina is a tort state which means you can be personally sued for injuries, deaths, and damages beyond the amounts your insurance policy covers.  Insurance companies strongly suggest you obtain more than the minimum coverage.  Any damages and injury expenses that go beyond your insurance coverage will fall on your pocketbook.  The more coverage you have, the more financially secure you are from lawsuits.  The average insurance premium in North Carolina averages about $596.00 and has the 44th most expensive auto insurance premiums in the nation as of 2006. 

In June of 2009, the governor of North Carolina signed into law a bill which prohibits the use of cell phones and text messages while operating a motorized vehicle.  If you are caught texting or talking on a cell phone while driving your car down the road in North Carolina you will be fined $100.00 plus other fees for the court.  You will not receive points on you driving record and the insurance surcharge will not be applied. 

Some things you can do to reduce your premiums are to maintain a clean driving record, and drive a vehicle with a good safety rating.  Other things that can affect your insurance are the area where you live and work and the traffic volume in that area.  If you have a teenage driver, it may be less expensive to include them on the family policy.  Stress with them the importance of maintaining good grades and a clean driving record as these will help to defray the cost of premiums.  Your age, the age of your car as well as its condition and the type of vehicle you drive, your gender, and your marital status will play a factor in the cost of your auto insurance premiums.  Keep in mind that luxury cars and sports cars are more expensive to insure.  It may also help to be aware of the most commonly stolen cars in North Carolina.

1. 1996 Honda Accord
2. 2000 Honda Civic
3. 1996 Jeep Cherokee/Grand Cherokee
4. 1998 Ford Explorer
5. 1994 Toyota Camry
6. 1997 Ford F150
7. 1996 Ford Taurus
8. 1994 Dodge Caravan
9. 1994 Ford Ranger
10. 1997 Chevrolet Cavalier