Automobile Insurance Basics

Automobile insurance is used to protect you against expenses if you are involved in an automobile accident.

Liability coverage is required by North Carolina law.

The liability section can be separated into Bodily Injury Liability and Property Damage Liability.  Bodily Injury will pay for damages to other people as a result of an accident caused by you or another covered driver.

The property damage liability will pay for damages to other people’s property as a result of an accident that is caused by you or another covered driver.

The policy will pay up to the limits listed in your policy.

Comprehensive coverage (Other Than Collision) pays the cost of repair or actual cash value of your automobile less any deductible for a covered loss.  Losses caused by the following are considered comprehensive claims, breakage of glass, contact with an animal, fire, theft.

Collision means physical damage to your covered vehicle caused by an impact with another vehicle or object.  This coverage pays the lesser of the cost of repair or actual cash value of your automobile.

Medical Payments coverage pays for reasonable and necessary medical and funeral expenses due to an automobile accident.

Uninsured/Underinsured Motorist coverage will provide protection when an uninsured or underinsured driver, who is at fault, injures you or another covered individual.  An underinsured driver is one whose limits of liability are less than your UIM limits and not enough to cover the losses of the people the underinsured driver injuries in an at fault accident.

Some miscellaneous coverage includes coverage for rented vehicle, towing and labor cost coverage, or extended transportation expense coverage.

C Bruce Matthews
TruOptions Personal & Commercial Insurance, LLC

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