Everything you need to know to make smart insurance decisions in North Carolina
Buying auto insurance for the first time can feel overwhelming, but it doesn't have to be. This guide will walk you through everything you need to know to get the right coverage at the best price.
Auto insurance is a contract between you and an insurance company that protects you financially if you're in an accident or your car is damaged or stolen. In exchange for paying a premium, the insurance company agrees to pay your losses as defined in your policy.
Auto insurance isn't just about protecting your car - it's about protecting your financial future. Without proper coverage, a single accident could cost you tens of thousands of dollars.
Before you can legally drive in North Carolina, you must have minimum insurance coverage:
$50,000 per person
$100,000 per accident
Covers medical expenses and other damages for people injured in an accident you cause.
$50,000
per accident
Covers damage to other people's property (vehicles, buildings, etc.) that you cause.
Same as liability
Required in NC
Protects you when hit by drivers without insurance or hit-and-run accidents.
These are MINIMUM requirements. Most experts recommend higher limits to better protect your assets. The minimum coverage may not be enough if you cause a serious accident.
Pays for damage to your car from accidents, regardless of who's at fault.
Covers theft, vandalism, weather damage, and other non-collision incidents.
Covers medical expenses for you and passengers, regardless of fault.
Rental car coverage and towing expense reimbursement.
If your car is worth more than $3,000 or you're still making payments, strongly consider comprehensive and collision coverage. The small increase in premium can save you thousands if something happens to your car.
Understanding these factors can help you make decisions that keep your rates lower:
Before buying a car, get insurance quotes on the models you're considering. Insurance costs can vary dramatically between similar vehicles. A Honda Civic might cost half as much to insure as a Honda Civic Si.
Here's the smart way to shop for auto insurance:
Good student discounts can save 5-25% if you maintain a 3.0+ GPA.
Combine auto with renters insurance for 5-25% savings.
Avoid sports cars and luxury vehicles as your first car.
Use usage-based insurance apps to prove you're a safe driver.
Start with higher deductibles to lower your premium, then gradually lower them as you build savings. A $1,000 deductible instead of $250 can save you hundreds per year. Just make sure you can afford the deductible if you need to file a claim.
Young drivers face higher rates, but you have options:
Some companies weigh credit scores heavily, others don't:
Smart car shopping can save you money on insurance:
Auto insurance is more than just monthly premiums. Here's what to budget for:
A good rule is that your total auto expenses (payment, insurance, gas, maintenance) shouldn't exceed 10-15% of your take-home income. If you're spending more than that, consider a less expensive car or higher deductibles.
Follow this checklist to get the right coverage at the best price:
We're here to help you find the perfect coverage at the best price. Let our experience work for you.
Bill Layne Insurance Agency
Licensed NC Insurance Agent | Serving North Carolina Since 2004
1283 N Bridge St, Elkin, NC 28621
Office Hours: Monday - Friday, 9:00 AM - 5:00 PM