North Carolina Car Insurance
What happens if I have a lapse of liability insurance?
Whenever your liability coverage is cancelled or nonrenewed, your insurance company is required to notify the North Carolina Division of Motor Vehicles (DMV). The DMV is required to notify you when they receive the notification. If there is a penalty, the DMV will advise you of such and what action, if any, that you need to take.
Will my policy provide the required liability coverage when traveling to other states?
Yes, your policy will automatically meet the minimum requirements of other states in which you are traveling.
What about driving in Canada and Mexico?
Your policy will cover you and meet the requirements of Canada. Your policy WILL NOT cover you in Mexico. In the border states, you can purchase Mexican liability policies from agents who specialize in it.
Are family members covered by my policy?
Yes, family members are insured under your policy. Family member is defined in your policy as a person related to you by blood, marriage or adoption who is a resident of your household. This includes a ward or foster child.
Do I need to purchase coverage when I rent a car?
Under certain conditions your auto policy may provide coverage while using a rental vehicle. However, contact your agent for specifics.
Is flood damage covered?
Yes, if you have purchased the Comprehensive coverage.
Are cell phones and stereo equipment covered?
Stereo equipment, cell phones, televisions, scanners and other media may be covered under certain conditions. You should check with your agent to make sure you are properly covered.
When I buy an additional car or replace a car, is the new car covered automatically?
Yes, as long as you notify the insurance company within 30 days after acquiring a new vehicle. Additional vehicles will have the broadest coverage of any vehicle listed on your policy. Replacement vehicles will have the same coverage as the vehicle it replaced. If you do not notify the insurance company within 30 days, there will be no automatic coverage.
What happens if I drop coverage on a financed vehicle?
First, it is a violation of your finance contract and may put your loan in jeopardy. Second, the lender could place single interest coverage on the vehicle and add the premium to the loan. The coverage is expensive and does not provide any coverage for you.
What if I buy a motorcycle?
The auto policy, if not amended, does not provide any coverage. You can endorse your policy so that it will extend the coverages to your motorcycle.
I’m going to college in another state, and my car is still registered in North Carolina. Will my (or my parents’) North Carolina policy cover me?
Yes, coverage would still apply. Your premium may be adjusted because of where the vehicle is now located.
My daughter is going away to college. Can my insurance company force me to keep her on the policy if I want to remove her?
Yes, your company still must cover her as long as her permanent residence is your home. Even if she doesn’t have a vehicle with her, your policy covers her for liability when she may borrow a vehicle at school and when at home on visits.
I’m enlisting in the military. Does my policy still cover me if I’m stationed in another state?
Your policy will automatically meet the other state’s liability requirement. When it is time to renew your policy you may be required to purchase insurance in the state where you are stationed.
My son has received his driver’s license. Do I have to add him to my policy if he drops his own insurance policy?
Yes, as long as he is a resident of your household. However, you must notify your agent or insurance company. Failure to do so could jeopardize your coverage.
My 19-year-old son no longer lives with me. What can I do to remove him from my policy if the company wants to keep him on my policy?
Showing proof of insurance with another company can help you remove him. Also, show the company any documents that will help prove that a change of address has taken place. Examples of these documents can include lease agreements, utility billings or receipts, and a current driver’s license.
Does my child have to be rated on the most expensive vehicle?
No, the rates should apply to the vehicle your child principally operates. If the child is an occasional operator, the rates would apply to the vehicle your child most frequently operates.
Why does my insurance cost more than my agent said it would?
A quote is an estimate of your premium. It does not offer a firm price or contract. If your agent misquoted the premium, your insurance company must correct it by billing you for the correct premium or refunding the overpaid amount. Being accurate with your driving information is the best way to assure correct premium charges.
Why is it harder to get insurance if drivers in my household have bad driving records?
When the individuals residing in your house have bad driving records, the company knows it has an increased risk. Your company will consider that risk when underwriting the policy. According to the Liability Coverage section of your policy, any family member is considered an insured. Anyone driving your covered vehicle with permission is also covered by your policy.
Does an insurance company have to tell me why it cancelled my insurance policy?
Yes, a company must give the reason(s) why your policy was cancelled and the date termination is effective.
Can a company refuse to renew my policy because of claims that were not my fault?
Your company can nonrenew your Comprehensive coverage and Collision coverage if you do not meet its underwriting criteria, as long as the company gives proper notification. Many companies will use frequency of claims, taking into account at-fault as well as fault-free claims, as one of their criteria.
My company renewed my policy with another insurance company in the same group. Can they do that?
Yes, if it gives you proper notification that your original policy will be nonrenewed.
