Auto Insurance Laws and Trends in N.C.

Like a majority of the states in the country, North Carolina has adopted the tort system of insurance. All medical expenses and property damages are the responsibility of the driver who has been found to be at fault for an automobile accident. All drivers are required to carry minimum limits of liability insurance; although, higher limits are certainly recommended. The cost of vehicle repairs and medical expenses has risen drastically and the minimum limits may not be enough to cover them in case of a serious vehicle accident.

North Carolina's Safe Driver Incentive Plan

North Carolina has created the Safe Driver Incentive Plan (SDIF) to encourage drivers to use caution and common sense on the road. The fewer points a driver has, the cheaper his or her insurance will be. Points are given for driving infractions. The more serious the violation, the more points will be added. Speeding, failure to stop at a sign or traffic light, careless driving, reckless driving, DUI, and vehicular homicide are a few of the violations (from least to most severe) that will affect a driver's point level. The point system works as follows:

Drivers who accumulate multiple points are considered to be high risk drivers. In many cases, insurance companies can refuse to accept these drivers on their books. They will refuse to sell them insurance. If a driver signs a  "consent to rate" agreement, the insurance company will issue them a policy at a much higher rate.

Reasons for cancellation and refusal to renew auto insurance

An insurance company in North Carolina can cancel or refuse to renew a policy based on the following:

• Non-payment
• Misrepresentation
• Fraud
• Failure to include all household drivers on the policy

Request a free quote for North Carolina auto insurance today!