Consumer Services Division
a consumer's guide to
Insurance is a complex issue, and it is the responsibility of the North Carolina Department of Insurance to keep
consumers informed. This booklet will help explain the basic automobile insurance coverages, discuss factors that
influence your rates, describe what is involved in settling your claim and answer some of the most frequently asked
questions from consumers in North Carolina.
In addition to the information contained in this guide, we encourage you to take the time to read your personal
automobile policy. This will allow you to become familiar with the specific language of your policy.
The North Carolina Financial Responsibility Laws require that Automobile Liability coverage be maintained. The
minimum coverage requirements are $30,000 Bodily Injury for each person, $60,000 total Bodily Injury for all
persons in an accident and $25,000 for Property Damage.
North Carolina Motor Vehicle General Statute 20-279.21(b)(3) and (b)(4) requires that all licensed drivers carry
Uninsured/Underinsured (UM/UIM) motorist coverage on their motor vehicle insurance policies. Under this
requirement, your policy’s UM/UIM coverage limits must at least equal the highest bodily injury liability limit on any
one motor vehicle insured under the policy. Motor vehicle insurance policies sold or renewed in North Carolina on or
after January 1, 2009 must meet this requirement.
We are very proud of the services our department provides to the citizens of North Carolina. The North Carolina
Department of Insurance makes consumer advocacy its highest priority. The Consumer Services Division will be
happy to answer any questions you may have. Feel free to contact this Division toll-free at 1-800-546-5664.
A Message from the Department of Insurance
Table of Contents
Basic Automobile Insurance Coverages
Chart of Primary Coverages
How Rates are Determined
North Carolina Safe Driver Incentive Plan
Insurance for Hi