In the case of a car accident, car owners may dace certain expenses such as hospitalization and lost income. But it doesn’t have to be a burden, not when you have auto insurance. This is why vehicle owners are required to get auto insurance policy.

There are different types of coverage you can choose from. Laws and regulations for auto insurance coverage differ depending on your state, so it’s best to consult your insurance agent on the limitations of your insurance policy and get auto insurance quotes.

Liability Coverage

This type of coverage is a requirement by North Carolina law for every vehicle owner. Liability coverage includes bodily injury and damage to property where the insured individual is held responsible.

Liability coverage follows a certain split limit that allows separate limits of liability for every injured individual and limits of liability for every accident. In addition, every case will have a single limit of liability for all property damage.

One type of liability coverage is bodily injury where protection includes those who are affected by the accident caused by the policy owner or the covered driver. Another type is property damage liability, which covers property damages arising from an accident caused by the policy owner or the covered driver.

Coverage for Damage to Your Vehicle

This policy covers both private-owned automobile and any non-owned vehicle that is either being regularly used by the policy holder or a family member or if it is used as a temporary substitute to your covered vehicle due to repair, breakdown, servicing, or loss.

There are two types of coverage here: collision and comprehensive. Collision is physical damage to the covered automobile brought about by a strong impact with another vehicle or object. It covers the cost of repair caused by the damage. Comprehensive coverage pays the cost of repair minus the deductibles. Damage caused by the following cases can be covered by comprehensive policy: theft, fire, falling debris or objects, flood, vandalism, riot, earthquake or any explosion, breakage of glass, windstorm, and contact with an animal.

Medical Payments Coverage

This type of insurance claim pays for the necessary medical and funeral expenses caused by an automobile accident. Covered individuals may be you as the policy holder or any of your family members who are in the vehicle at the time of accident or anyone occupying your covered vehicle. The policy covers up to the limits listed in the insurance coverage for every injured individual.

Uninsured / Underinsured Motorists Coverage

Uninsured Motorist coverage provides insurance coverage for injured individuals due to an accident caused by an uninsured driver. This also includes coverage for damage to property.

Underinsured Motorist coverage is applicable when an underinsured driver causes injury to a covered individual where the driver’s limit of liability is less than the injured policy holder’s limits, and not sufficient to cover others who are involved in the accident. However, the UIM coverage does not include claims against property damage.