What is Auto Insurance?
Auto insurance is a contract between you and the insurance company. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy contract. Automobile insurance protects you financially by paying the other driver’s car repair and medical bills if you are found legally responsible for an accident. Depending on the kind of coverage you have, it can also pay to repair or replace your car if it’s damaged or stolen.
Certain policy coverages are optional by the insured. Basic personal auto insurance is mandated by most U.S. states and laws vary. In North Carolina, liability coverage is required, along with uninsured motorist coverage. Policies are generally issued for six-month or one-year time frames and can be renewable.
If you have questions, the Consumer Services Division of the Department of Insurance is here to help.
North Carolina Department of Insurance
325 N. Salisbury Street
Raleigh, NC 27603