Part One – Auto Insurance Defined

This is a multi-part series that will talk about auto insurance: what it is, what it covers and how rates are configured.

When you establish auto insurance you are making a contract between yourself and the company that will be insuring you. You pay your premium with the expectation that the insurance company will pay your losses as defined in your contract. If you are involved in an accident, your auto insurance is designed to cover your financial costs by paying for the other party’s car repairs and doctor bills if/when you are deemed to be lawfully at-fault for the accident. If you carry specific coverages your insurance may also pay to repair your car as well. We will talk about those specific coverage in parts two, three, four and five of the blog series.

If you own and operate a vehicle in the U.S., you are required to carry personal auto insurance. If you own and operate a vehicle in North Carolina, you are required to carry liability coverage and uninsured motorists’ coverage.

Auto policies can be written on a semi-annual or annual basis.