Here’s what you need to know before hitting the road to protect you and your car

Basic auto insurance is required in almost all 50 states. North Carolina is one of those states that requires all car owners to carry a minimum amount of auto insurance. This coverage protects you and everyone else on the road. 

So, before driving a new or used car off a lot in North Carolina, make sure that you not only have a good engine under your hood, but also a good auto policy in your glove compartment.

Here at Dan Thompson Agency, we can make sure that you—our North Carolina drivers—are matched with the best auto insurance plan for your specific needs. We want you to be covered for all unexpected twists and turns on the roads ahead.  

Read on to learn more about what basic auto insurance covers and how it protects you when the unexpected happens.

Bodily Injury Liability

Bodily injury coverage is required by law in North Carolina and covers injury or harm you cause other people while driving. 

With this coverage, you can rest assured that not only you, but all of your family members on your policy, are covered when driving your own car or other people’s cars with their consent. 

It is vital that you have a sufficient amount of liability insurance. None of us ever wants to cause another person bodily harm, but if such harm occurs due to an accident you caused, you need to be covered. Lawsuits stemming from accidents can and usually will involve large sums of money. 

North Carolina law requires that your auto policy provide at least $30,000 in bodily coverage for each person involved in an accident, and a total of $60,000 total bodily injury coverage for all those injured.  

That said, it is advisable to have coverage above the state-required minimum. You want to be sure that your auto insurance policy protects all of your assets and savings should a serious accident occur. To have the right amount of coverage, you need something that matches the amount of your assets and the driving habits of you and everyone else on your policy. Peace of mind is what insurance is all about! 

Uninsured Or Underinsured Motorist Coverage

This type of insurance covers you, a family member, or an authorized driver, in the event that one of you gets hit by an uninsured driver. Underinsured motorist insurance also covers your expenses if the driver at fault does not have enough insurance to pay for your total losses and expenses. 

Furthermore, this coverage protects you if you are the victim of a hit-and-run accident whether in a car or as a pedestrian. 

Property Damage Liability

This coverage pays for damages you or an authorized driver cause to another person’s property. North Carolina law requires that your policy provide at least $25,000 for property damage. 

Note that this coverage does not include the damage done to someone else’s car (this is covered in other provisions) but rather to such things as lamp posts, buildings, fences or other structures that your car damages. 

Comprehensive Coverage 

Comprehensive auto insurance covers you for events other than a car wreck. For example, this coverage can help pay for car repairs or car replacement if your car is stolen or damaged by something other than a collision. It typically covers events such as vandalism, contact with animals, riot damage, falling objects, fire, or other natural disasters. It will also cover repairs for cracked or shattered windshields.

Most of the time, comprehensive coverage is sold with a separate deductible. 

Collision Insurance 

Collision Insurance covers damages to your car resulting in a collision with another car, or due to your car rolling, or hitting objects such as trees, poles, or even potholes. 

Like comprehensive coverage, this type of coverage is usually sold with a separate deductible.This gives you flexibility to choose the amount of coverage you want. If you are in an at-fault accident, your policy will cover your own car repairs minus your deductible. If your accident is no-fault, your insurance will be able to help you recover repair expenses from the other driver’s insurance company on your behalf.


Towing coverage is an optional auto insurance coverage that protects you against some of the costs related to car breakdowns. This could be a result of a dead battery, flat tire, or engine failure. Of course, nothing beats taking proper care of your car over time to avoid breakdowns in the first place. With that said, you’ll rest easy knowing that you’ll be covered when the time does come to need this type of assistance.

Rental Reimbursement

Another optional type of auto insurance is rental reimbursement coverage. This type of coverage comes into play when your own vehicle is being repaired after a covered insurance claim. This coverage might include a rental car, transportation to and from a rental company, or public transportation fares. 

What this coverage does not include are the times when your car needs routine maintenance, or renting a car on vacation. 

Go With Auto Insurance That Best Fulfills Your Needs

In the end, selecting the auto insurance coverage that is right for you comes down to knowing your individual needs—the value of your car, your driving habits, the assets you need to protect, and your ability to repair or replace your car or parts should an accident happen. All these variables should be considered when selecting coverage. 

With over 90 years of experience in insurance among our team at Dan Thompson Agency, we’ll make sure you have the right coverage for all of your needs no matter what situation arises. We are here to help drivers in the Raleigh, North Carolina area get on the road with coverage that keeps you safe and protected. 

Give us a call at (919) 646-3160. We’ll steer you to the right insurance plan and match you with the coverage you need to feel fully protected.