Understanding Why North Carolina Has Extensive and Stricter Car Insurance Laws

Understanding Why North Carolina Has Extensive and Stricter Car Insurance Laws

Driving on urban roads in North Carolina is generally safer than on rural roads, where rolling hills, rocky surfaces and even livestock crossings are common. Actually, road conditions are major factors that have contributed to the high statistics of fatal rural traffic accidents in the Old North State. That is one reason why the car insurance requirements in this region are extensive, while both local and state police are quite active in enforcing traffic laws in the Tar Heel State.

Still, North Carolina has a lot to offer for leisurely road trips with its scenic mountain views and picturesque coastal villages. However, since the scenic roads crisscross from the mountains to the coastal areas, North Carolina’s rural roads are regarded as more dangerous compared to the state’s urban routes. A 2017 study conducted by Travel Reporting and Information Processing System (TRIPS) a national transportation safety group, revealed that 10 percent of the Old North State’s rural roads are in terrible conditions, while 20 percent are in not so good shape.

Statistically, about 62 percent of deadly car crashes in North Carolina occur on rural byways, while 37 percent took place in urban roads. Generally, motorists in the Old North State must always buckle up, observe speed limits and focus intently on the road in order to stay safe, as well as to avoid being slapped with costly traffic safety violation tickets.


North Carolina’s Insurance Requirements

Insurance requirements in North Carolina go beyond the minimum third party insurance coverage required to protect third parties from the financial implications of bodily injury, damage, or loss as results of car accidents.

In the Tar Heel State, driver are required to carry uninsured/underinsured motorist (UM/UIM)coverage in addition to liability insurance for bodily injury or death, and for property damage:

The minimum liability insurance coverages in North Carolina are as follows:

  • $30K for bodily injury to or death of one person;
  • $60K for bodily injury ro or death of two or more persons
  • 25K for property damage;
  • UM/UIM insurance coverage of $30K, $60K and $25K for one, two or more and for property damage, respectively.

Actually, North Carolina is one of 21 states that require UM coverage, while also one of 12 states that require UIM coverage. The additional insurance coverage requirements make North Carolina a “tort-based” state, where an injured party can claim damages from the insurance provider of the driver at fault, regardless of who has been determined as the driver at fault.

The UM/UIM coverage takes into account the possibility of car crash accidents involving drivers who disregard insurance laws or those whose coverage are not sufficient to cover for cost-intensive injuries.

North Carolina Also Requires Non-Owner Insurance Coverage

North Carolina residents who do not own a vehicle because they prefer to lease a car, or who frequently drive a car owned by a family member, are also required to carry Non-Owner Insurance coverage while on the road and behind the wheel. Visitors to the Old North State, who are driving a rented car must likewise make sure that they’ll be able to present a Non-Owner Insurance to NC’s state or law traffic law enforcers. NC police are inclined to check such insurance requirements from drivers of vehicles bearing license plates issued by another state.

That is why if you are to go now to North Carolina either for business or leisure purposes, it would be to your best interest to obtain a Non-Owner Insurance from a North Carolina online insurance provider offering this type of coverage. Although car rental companies offer Non-Owner Insurance policy as part of the rental package, it would be a lot cheaper to buy one online from Non-Owners Insurance NC.com.