Auto InsurancePersonal Insurance
Your personal automobile policy is simply a contract between you and the insurance company- if you pay the premium, the insurance company agrees to pay for damages you owe to others (liability) and to pay you for damages to your car (comprehensive and collision) as a result a covered loss. As with most contracts, the devil is in the details. While price is obviously a factor in your purchasing decision, be careful not to settle for the lowest-cost option if it’s not what you really need.
Here are a few things to consider before purchasing your automobile insurance policy.
What liability limits should I have?
- North Carolina requires that automobiles carry minimum limits of $30/$60/$25 ($30,000 limit for an individual bodily injury, $60,000 for all bodily injuries from one loss, and $25,000 for property damage). Understand that you might be personally responsible for damages that exceed your coverage limits. The average cost of a new car is well above $30,000. If you carry the state minimum limits and happen to rear-end a car, would you be prepared to pay for any damages above the $25,000 property damage limit?
What’s the deal with deductibles?
- A deductible is simply your share of a covered loss. While higher deductibles lower the amount or premium charged, deductibles apply to each loss, so you might be subject to multiple deductibles if you have the misfortune to have more than one accident in a policy period.
Do you lease a car/have a lien?
- If your car is a total loss as the result of an accident, what would you do if the car was worth less than the amount of the outstand lien or lease amount?
Do you drive a company owned vehicle? Do you occasionally rent cars?
- Does your current policy provide coverage for these specific situations? While you may think that you are always covered by the company’s insurance policy when driving a company-owned vehicle, there might be some exceptions. Make sure that your auto policy would respond in those situations.
If your car is damaged, do you want repairs to use parts made by the original manufacturer?
- In most cases, insurance companies will use lower-cost after-market parts to complete repairs. For some people that isn’t a problem, however, if you have a high-end vehicle, your preference might be to have all repairs include parts made by the original manufacturer (BMW repairs made by using BMW parts for example). What would you want your policy to do?
If you want to find out more or would like a quote, please don’t hesitate to call us at 704-926-2500 or submit your information below and we’ll contact you as soon as possible.