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Our personal injury attorneys are often asked numerous questions about how North Carolina auto insurance works in various scenarios. Below, we’ll respond to some of the most commonly asked questions. Please note that not all scenarios are the same, so if you have questions, contact our office to discuss the specifics of your situation with a skilled attorney.
I Have Several Family Members Living with Me. Are They Covered Under My Auto Insurance Policy?
In North Carolina, family members are generally covered under your auto insurance policy, but this coverage depends on several factors. To be more specific, family members who live in your household and have permission to drive your car are often included as covered drivers on your policy. This would include spouses, children, or other relatives living with you who are named on the policy.
Consider the following: If your spouse or child drives your insured car or truck and is involved in an accident, they would likely be covered as long as they are listed on the policy. North Carolina insurance policies also typically provide coverage for “permissive use,” which means anyone with permission to drive your vehicle could be covered under your policy. However, please note that limitations might apply if they are not household members or named insureds.
To ensure you have the right coverage for all family members, it is essential to disclose all household drivers to your insurance company. Failing to do so could potentially result in denied claims or reduced coverage if a family member who is not listed on the policy gets into a collision.
When the Time Comes for Me to Buy an Additional Vehicle or Replace My Current Vehicle, Will the New Automobile Be Covered Automatically by My Existing Auto Insurance Policy?
In North Carolina, auto insurance policies generally offer automatic coverage for newly acquired vehicles under certain conditions. If you purchase an additional car, it may automatically be covered for a short period, typically 30 days, depending on your insurer’s specific guidelines.
This automatic coverage applies as long as you notify your insurer within the timeframe specified in your policy. Similarly, if you replace a car already insured under your policy, most North Carolina policies will extend automatic coverage for a set period (30 days) to give you time to update your insurer. However, it is imperative that you inform your insurance company of the new or replacement vehicle as soon as possible to avoid coverage gaps.
This is especially important for coverage types like collision or comprehensive, as the specifics can vary based on whether you already have these coverages on your policy. Failure to notify your insurer within the applicable timeframe could mean losing any automatic coverage for the new vehicle. It is critical to review your policy and speak with your insurance agent as soon as possible when purchasing or replacing a vehicle.
My Son is Leaving for College Soon, and I Want to Remove Him from My Auto Insurance Policy. Can My Carrier Make Me Keep Him on My Policy?
In North Carolina, if your son is attending college and is no longer living in your household, you may have options regarding his coverage. However, many insurers throughout the state may require that a college-aged child remain on your policy, especially if he still uses the automobile when he comes home for visits or if he is living within a certain distance from your home (typically 100 miles or less).
If your son is moving out of state but still plans to drive the car from time to time, it might make sense to keep him on the policy to ensure there is adequate coverage. Some insurers offer “away-from-home” or “student” discounts, which could lower the cost of his premium while keeping him insured.
However, if you still want to remove him from the policy entirely, discuss this with your insurance agent, as it may depend on your insurer’s guidelines. In some instances, insurers may make exceptions if your son no longer has access to the vehicle, but they could require proof that he has alternative coverage if he is still driving.
I Am Going to be Attending College in Another State, but My Truck is Still Registered in North Carolina. Am I Covered by My or My Parent’s North Carolina Auto Insurance Policy?
If you will be attending college out of state but intend to keep your vehicle registered in North Carolina, your North Carolina auto insurance policy can generally still cover you. In most cases, North Carolina policies will extend coverage for students who are temporarily living out of state for education purposes.
However, your coverage could be subject to some limitations or adjustments, especially if you are staying in a state that has significantly different insurance requirements or if you will be in the state for an extended period of time.
Some insurers may require notification of the vehicle’s new location if it is primarily used outside of North Carolina, as this information can impact premiums. It is important to discuss this with your insurer to confirm that you will be adequately covered and understand if there are any changes needed to ensure compliance with the out-of-state regulations. Failure to inform your insurer about the vehicle’s new location may lead to denied claims if you have an accident while at school.
Do I Need to Pay for the Insurance Coverage Offered by the Rental Company When I Rent a Vehicle in North Carolina, or Will My Personal Insurance Policy Cover Me?
When renting a car in North Carolina, whether you need to purchase additional coverage depends on several factors, including the coverage provided by your personal auto insurance policy, any coverage offered through your credit card, and the type of rental car insurance options available. In many cases, your North Carolina personal auto insurance policy may already provide adequate coverage for a rental vehicle, but you must take the time to review your policy and understand its limitations (and know your risks) before making your final decision.
Most North Carolina auto insurance policies include liability, collision, and comprehensive coverage, which can extend to rental vehicles. Liability insurance typically covers the damages that you cause to other vehicles property or the injuries caused to others in a motor vehicle accident. If you have collision and comprehensive coverage on your personal policy, these coverages may also apply to rental cars and help to cover repairs for any damage caused to the rental vehicle in case of an accident, theft, or vandalism. However, review your policy thoroughly, as not all policies automatically extend these coverages to rentals — especially for more expensive or luxury rental vehicles. Check with your insurance provider to confirm what is covered when renting a vehicle.
In addition to your auto policy, many credit card companies offer rental car insurance as a benefit when you use their card to pay for the rental. However, this coverage is typically secondary, which means that it will only cover any costs not covered by your primary auto insurance. Some premium credit cards may offer primary rental car coverage, which could eliminate the need to rely on your auto policy. Still, credit card rental coverage usually excludes certain types of vehicles, like trucks or exotic cars, and often comes with limitations, so it is important to check with your credit card provider about the details.
When renting a car, you will likely encounter optional insurance products offered by the rental company, including Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), liability coverage, personal accident insurance, and personal effects coverage. A CDW or LDW is not traditional insurance but rather a waiver that limits or waives your financial responsibility for damage to the rental car.
If your personal insurance policy or credit card does not cover rental cars, purchasing a CDW could offer peace of mind and protect you from having to pay for costly repairs. Liability coverage through the rental company is particularly valuable if you only carry the minimum liability limits required in North Carolina, as rental company liability insurance often provides higher limits, which could be essential in covering substantial claims.
For some renters, purchasing additional coverage is a wise choice to avoid impacting their own insurance in case of an accident, as filing a claim on your personal policy could lead to higher premiums. Additionally, if you’re renting a car for business purposes, personal insurance may not apply, and purchasing rental company coverage can provide the necessary protection.
Whether you need additional coverage when renting a car in North Carolina depends on the scope of your existing coverage and your comfort level with potential out-of-pocket expenses. If your personal auto insurance and credit card benefits offer sufficient protection, you might not need extra coverage. However, if there are gaps in coverage, or you prefer to avoid potential rate hikes on your personal insurance, the rental company’s offerings may be worthwhile. Reviewing your insurance and credit card policies before renting can help ensure you are adequately protected and prepared for any unexpected costs.
I Am Preparing to Enlist in the Army. Will My North Carolina Auto Insurance Policy Still Cover Me if I’m Stationed in a Different State?
Yes, your North Carolina auto insurance policy will generally continue to cover you if you enlist in the military and get stationed in another state. However, you must let your insurance company know about your relocation.
Many insurers have specific guidelines for military members who are stationed out of state, and they may offer options or discounts that are specifically tailored to military personnel. That being the case, you must notify your insurance company about your deployment or relocation status to ensure that there is no coverage interruption and to confirm whether your policy needs any adjustments based on your new location.
North Carolina insurers often provide flexible policy options for military members to ensure their coverage remains active even when out of state. However, certain kinds of coverage may be impacted if your automobile is not primarily garaged in North Carolina. Accordingly, you are encouraged to keep the lines of communication open with your insurer to address any state-specific coverage requirements or necessary policy updates.
My Daughter Just Got Her Driver’s License. Am I Going to be Required to Add Her to My Auto Insurance Policy if She Ends Up Dropping Her Own Coverage?
In North Carolina, when your daughter gets her driver’s license while still living in your household, you are generally required to add her to your policy, even if she previously had her own insurance.
Insurers in North Carolina typically mandate that all licensed household members be listed on an auto insurance policy to ensure that everyone who may have access to and/or drive your automobile is covered. If your daughter drops her individual insurance policy, it is imperative that you add her to yours as soon as possible to avoid coverage gaps.
Failing to do so could risk a denied claim if she drives your car and is involved in an accident. Note that there are exceptions. For example, some North Carolina insurers may allow you to exclude her from your policy if she does not drive your vehicle at all, but this requires a formal exclusion, and she will have no coverage if she ever decides to drive your vehicle unexpectedly.
My 20-Year-Old Daughter Has Moved Out of My House, but My Auto Insurer is Insisting That I Keep Her on My Policy. Is There Anything I Can Do to Take Her Off Despite What My Insurer Says?
Generally, in North Carolina, if your 20-year-old daughter no longer lives with you, you may be eligible to remove her from your policy. But, as you have already discovered, this often depends on your insurer’s requirements.
If your daughter has moved out permanently and has her own residence, providing proof of her separate address or evidence that she no longer has access to your automobile may help you remove her from your policy.
Many insurers will ask for documentation, such as a lease or utility bill, as evidence of her new residence. Additionally, if she has her own vehicle and auto insurance policy, providing this information to your insurer can further support your request to remove her from your policy. Still, some insurers may insist on keeping her listed, even if she has only occasional access to your vehicle. So, it is important to clarify with your insurance company and confirm any specific steps required to complete her removal from your policy.
I Was in an Accident, and the Insurance Company Wants to Total My Car. However, I Want to Keep and Fix My Vehicle. What Options Do I Have?
If your North Carolina auto insurance company wants to total your car, but you prefer to repair it, you may have an opportunity to negotiate. In North Carolina, a vehicle is typically considered a “total loss” when the repair costs exceed 75% of the car’s fair market value.
However, if you disagree with this assessment, you can ask for a second opinion or provide additional evidence to support your car’s value, such as recent maintenance records or a third-party appraisal.
Note that some insurers may allow you to keep the vehicle after a total loss declaration, but they may only offer a settlement up to the car’s cash value minus any salvage costs. If you keep the vehicle, you will need to handle any necessary repairs out of your own pocket or be prepared to negotiate directly with your insurer. North Carolina law allows owners to keep their totaled vehicles, but the car must pass a safety inspection if you ever plan to operate it on the road again.
Contact Our Personal Injury Attorney Today to Discuss Your Rights and Options Under the Law
Whether you have been involved in a motor vehicle accident and you have questions about how your insurance policy may be applied for compensation, or you are just trying to plan for future situations that may arise with respect to your insurance coverage, our North Carolina personal injury lawyers can help. Contact our office to discuss the specifics of your situation and learn more about how automobile insurance works here in North Carolina.
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