FAQs About Auto Insurance

Frequently Asked Auto Insurance Questions

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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.

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. Please note these family members should be listed as drivers under your policy.

Under certain conditions your automobile policy may provide coverage while using a rental vehicle. However, contact your agent for specifics.

Yes, as long as you already have an existing automobile insurance policy and you notify your 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 your automobile insurance company within 30 days, there will be no automatic coverage.

No, the automobile policy contract does not cover for liability arising out of the ownership or operation of a vehicle while it is being used as a public livery or conveyance. This includes but is not limited to any period of time that insured is logged into a TNC as a driver, whether or not a passenger is occupying the vehicle.

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.

Yes, coverage would still apply. Your premium may be adjusted because of where the vehicle is now located.

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.

Yes, as long as he is a resident of your household. However, you must notify your agent or company. Failure to do so could jeopardize your coverage.

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.

The company may be assessing you whats called a short rate cancellation. If you canceled your auto policy prior to the policys expiration date, your contract allows them to cancel on a short rate basis. The company will calculate how many days the policy was in force and using percentages in the personal auto manual, calculation will be done to determine how much is owed or if a refund is due. Short rate cancellation is not a NC law, but it is apart of the policy contract.

You have the right to keep the salvage vehicle. When you do, the insurance company will deduct the salvage value from the actual cash value. If requested, the insurance company must furnish you with the name and address of a salvage dealer who will purchase the salvage for the amount deducted.

You can elect to use the appraisal provision of your policy. According to the provision, you and the insurance company will each choose a competent appraiser. The two appraisers will then select an umpire. The appraisers will state separately the ACV and the amount of loss. If they do not agree, they will submit their differences to the umpire. A decision by any two will be binding.

The insurance company and the insured will pay its chosen appraiser and bear the expenses of the appraisal and umpire equally.

An insurance company cannot charge insurance points for an accident that was not your fault. Your agent can give you advice about your company’s underwriting and how the claim may affect your policy.

It is common practice for insurance companies to allow a rental vehicle while your car is being repaired. However, there are no statutes or administrative codes that require an insurance company to offer a rental vehicle.

After receiving a claim an insurance company has 30 days to acknowledge the claim. The acknowledgment shall be one of the following, make an offer of settlement, deny the claim, make payment of the claim, or advise the claimant that the investigation of the claim is ongoing. Loss and claim payments should be mailed or delivered within 10 business days after the claim is settled.

Yes. The insurance company must provide a reasonable explanation of why your claim was denied in relation to the policy language or applicable law.

No, liability insurance only pays for other people’s injuries and property damage for which an insured driver becomes legally responsible.

Medical – Your Underinsured Motorists (UIM) coverage can provide protection for the difference between the other driver’s Liability Coverage and the limits under your UIM coverage. You may find additional coverage under the Medical Payments coverage portion of your policy. Check with your agent and review your policy to make sure you are adequately covered.

Property Damage – The difference could be covered by your Collision coverage. Again, check with your agent and review your policy to make sure you are adequately covered.

Your company can nonrenew your Other Than Collision (Comprehensive) and Collision coverages 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.

Yes, a company must give the reason(s) why your policy was cancelled and the date termination is effective.

A quote is an estimate of your premium. It does not offer a firm price or contract. If your agent misquoted the premium, your 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.

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.

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.

Yes, your policy will automatically meet the minimum requirements of other states in which you are traveling.

This can occur for many reasons including low down payments, high interest rates and poor maintenance. You may be able to purchase a type of coverage called Guaranteed Automobile Protection (GAP). GAP coverage covers the difference between the actual cash value of your car and your loan balance. This is typically only available for new vehicles. Otherwise, you can be held responsible for the difference.

No. An insurance company cannot require you to go to a particular repair shop.

Notify the insurance company of how, when and where the accident or loss happened. Include the names and addresses of anyone who is injured and any witnesses. Cooperate with the investigation. Obtain or authorize the insurance company to obtain appropriate documents, medical information and other pertinent records.

When canceling your Liability, Medical Payments and Uninsured Motorist or Uninsured/Underinsured Motorist Coverages for non-payment of premium, your company must mail a notice to your last known address at least 15 days in advance. Sixty days notice is required for all other reasons.

The insurance company is responsible for showing proof that the notice of cancellation was mailed, not proof that you did or did not receive it.

If canceling any coverage other than Liability, Medical Payments and Uninsured Motorists or Uninsured/ Underinsured Motorists, your company must mail a notice to your last known address at least 10 days in advance.

Yes, if it gives you proper notification that your original policy will be nonrenewed.

Yes, if you have purchased Other Than Collision (Comprehensive) coverage.