NC Insurance Tips:
Save Money
on Auto & Home.

No. Rental reimbursement in NC only pays for a rental car if you were in a covered accident (like a collision or comprehensive claim such as theft, vandalism, or weather damage). It does not cover rentals when your car breaks down from mechanical failure, a blown engine, or transmission problems. For that, you'd need a separate mechanical breakdown policy or extended warranty.

Collision covers damage when your car hits another vehicle or object (like a guardrail, tree, or pole)—regardless of fault. Comprehensive covers non-collision events like theft, vandalism, hail, flooding, fire, falling objects, and hitting an animal. Both coverages have deductibles you pay before insurance kicks in. Most lenders require both if you have a car loan.

Consider the 10% rule: if your annual premium for comprehensive and collision exceeds 10% of your car's actual cash value, it may be time to drop to liability only. For example, if your car is worth $3,000 and full coverage costs $400+/year, you're essentially "over-insuring" a depreciating asset. However, only drop coverage if you can afford to replace the vehicle out-of-pocket.

NC requires minimum liability coverage of 30/60/25: $30,000 bodily injury per person, $60,000 bodily injury per accident, and $25,000 property damage. However, these state minimums often aren't enough—a single serious accident can exceed these limits, leaving you personally responsible. Most agents recommend at least 100/300/100 for adequate protection.

Top ways to save: 1) Bundle auto + home for multi-policy discounts. 2) Raise your deductibles if you have savings to cover them. 3) Ask about safe driver, good student, and defensive driving discounts. 4) Use the 10% rule to know when to drop full coverage on older cars. 5) Shop with an independent agent who compares 10+ carriers—rates vary dramatically between companies for the same driver.