When an accident occurs in North Carolina, the at-fault driver often relies on their vehicle insurance to cover any damage. This can include everything from repairing a vehicle to paying for medical bills after a serious accident. While all those who drive are required to have insurance coverage, many misunderstand some of the key elements of coverage.
According to esurance.com, one of the most common myths about coverage is that full coverage will cover all expenses related to an accident. Typically, a full coverage policy includes comprehensive and collision coverage as well as liability insurance. The former protects the vehicle, while the latter is intended to cover the policyholder if they injure another driver.
Another myth that insurance.com points out is that many believe that if a friend borrows a car, they are responsible for any damages incurred in an accident. If the driver has permission from the owner and they are in an accident, the owner’s policy will cover the costs of the accident.
Many drivers have not even heard about uninsured or underinsured coverage. This is the type of coverage that protects the policyholder if they are in an accident with someone who does not have insurance or does not have enough to cover the costs of the accident.
Finally, more expensive cars are not more expensive to insure. Rather the insurance company looks at how much it costs to repair or replace a car and what type of history the make and model has in terms of claims. Cars that cost more to repair and have a high loss history may cost more to insure than more expensive cars that are more reliable.