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February 17, 2023

What Are Different Types of Auto Insurance?

Auto insurance, also called car insurance, is crucial for anybody who owns, rents or leases a car. If you’re in an accident, your auto insurance can help cover expenses you’d otherwise have to pay out of pocket. Depending on the type of auto insurance you have, your policy can also help pay for your medical bills, damage to your vehicle and costs arising from accidents with uninsured motorists. Read on to learn more about the types of auto insurance coverage you can choose.Red Car on the road

What Types of Auto Insurance Are Required?

Certain types of auto insurance coverages are required in many states. As of February 3, 2023, North Carolina drivers must carry minimum liability insurance coverage and uninsured/underinsured motorists coverage.

The following coverages are examples of the types of minimum auto insurance coverage you may be required to carry for your vehicle in North Carolina:

  • Liability coverage can help pay for legal liability and other financial losses arising from harm caused to third parties.
    • Bodily injury liability can help pay for costs (e.g., medical bills, legal fees, lost wages) arising from injuries or deaths you cause to third parties while driving.
    • Property damage liability can help pay for expenses arising from third-party property damage you cause while driving.
  • Uninsured motorist (UM) coverage can help cover medical bills for you or another covered individual and help reimburse you for damage to your vehicle if you’re in an accident with an at-fault uninsured motorist.
  • Underinsured motorist (UIM) coverage can help pay for your medical bills if you’re in an accident with an at-fault driver whose coverage limits are insufficient to cover your expenses.

Contact ACF Insurance Services in Raleigh, North Carolina, to find out if you have the coverage you need.

What Are the Different Types of Auto Insurance?

You could face high out-of-pocket expenses following an accident if you purchase only enough auto coverage to meet minimum state requirements. Additional types of auto insurance coverage may be available with your insurer.

The following are some auto insurance coverages to consider adding to your policy:

  • Collision coverage may assist with paying for damage to your vehicle from collisions with other vehicles or objects, regardless of who’s at fault.
  • Gap coverage may assist with auto loan payments if a car you’re renting or leasing is stolen or totaled.
  • Comprehensive coverage may assist with repairs or replacements if a noncollision incident (e.g., theft, fire) damages your vehicle.
  • Medical payments coverage (MedPay) may assist with medical bills if you or your passengers are injured during a car accident.

Where Can I Buy Auto Insurance?

Finding the right auto insurance takes time and effort. Contact ACF Insurance Services at 919-878-7786 to speak to an agent today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

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