What Insurance Do I Need For A Financed Car?

What Insurance Do I Need For A Financed Car?

Being underinsured is a risk in itself. You run the risk of having to pay hefty bills in case of road accidents and liabilities that follow. On the other hand, getting comprehensive insurance with a maximum coverage amount comes with an expensive price tag. So, how do you get affordable car insurance North Carolina?

Before diving into the tips, explore North Carolina’s state laws on car insurance.

Legal Requirements for Car Insurance

Every vehicle registered in North Carolina needs to carry a minimum level of insurance. As per the North Carolina Department of Transportation, out-of-state policies aren’t acceptable. As per the law, the minimum requirements for different coverages are as follows:  

  • Bodily injury coverage – $30,000 per person
  • Per accident coverage – $60,000
  • Property damage liability – $25,000

When it comes to liability insurance, North Carolina’s law is strict. N.C. Division of Motor Vehicles (NCDMV) requires insurers to notify them in case of policy lapses or cancellations by any vehicle owner, whom the insurers had sold their policies. In case of non-renewal or failure to carry insurance, the vehicle owner will be subject to fines and penalties.

what insurance do i need for a financed car

What Insurance Do I Need For A Financed Car: 5 Tips to Reduce Your Car Premium

Getting affordable car insurance in North Carolina is not as difficult as you may first think. Follow these tips to reduce your overall insurance costs.

Raise the Deductible to Get Affordable Car Insurance

If you agree to pay higher deductibles, your insurance premium will automatically go down. However, remember that increasing your deductible means you need to make more payments for a loss event before your insurance kicks in.

Bundle Policy Makes it Affordable

Bundle the insurance policies under a single insurer. For instance, you can get discounts if you buy your home policy and your car policy from one insurer.

Driving Record for Car Insurance

Keep your driving record clean. Be safe on the roads. An excellent driving record suggests low risk on your end. That implies a lower probability of insurance claims, leading to lower premiums.

Type of Car for Insurance

The type, model, make, and value of your car significantly influence the overall premium rates. For instance, a new high-end car will incur a higher cost of damage than a medium-priced car. That’s why the premium for the former is greater than the latter.

Named Drivers in Your Policy for Verification to Get Insurance 

While insurers allow you to add numerous drivers in a single-car policy, that comes with a price – The more the number of drivers registered in your policy, the higher the cost will be. In fact, if you add a teen driver, your premium will substantially soar.

While reducing the legally required car insurance coverages isn’t on your hands, these factors will help you get affordable car insurance in North Carolina.  Get a quote today for free and step towards safety! 

We also provide a complete guide on Do I Need Insurance To Drive Car Off The Lot?. Read our insurance blog to know what is listed on it.

Furthermore, know-how successful insurance agency maintains a good agency management system and insurance agency management systems. Also, know how to use insurance software to speed up your work form here. 

affordable car insurance
affordable car insurance