Online Vehicle Insurance, Be Aware of North Carolina Insurance Responsibilities
The Tar Heel State implemented the Financial Responsibility law in 1957 which requires all motorists to be financially responsible for bodily injuries and property damage that they may cause as a result of a traffic accident. The Financial Responsibility Act of 1957 was developed to protect residents and ensure that there will be compensation in place should they suffer injuries or losses following a collision where another driver is found to be at fault.
The most common method used to comply with the state’s laws is to purchase a North Carolina car insurance policy consisting of at least the minimum liability limits required by law. All liability policies must contain limits of $30,000 for bodily injury for one person, $60,000 for bodily injury for two or more people and $25,000 for property damage; this is the minimum and higher limits may be purchased for an additional premium to protect assets in the event that compensation due to the other party exceeds these amounts. In addition, as of January 1, 2009, the state also requires motorists to purchase Uninsured and Underinsured Motorist coverage in amounts no lower than the bodily injury liability limits of the insured’s policy.