North Carolina Insurance Questions Answered

Popular Questions about North Carolina Car Insurance

North Carolina drivers pay $986 per year, on average, for car insurance. This is lower than the national average of $1,311 per year. 

North Carolina drivers can find the best rates by doing their homework. An independent insurance agent can help you get quotes from multiple insurance companies, so you can be sure you are getting the best coverage for your needs, at the right price. 

North Carolina’s roads can be congested and dangerous at any time of year. Accidents can happen in the blink of an eye. If you are involved in a crash, here are a few of the ways that your North Carolina auto insurance can help...

  • Fix your car (not required): We call this "comprehensive & collision coverage," and though it is not required by the state, it may be required by your lender. 
  • Fix someone else's car (required/min. $25,000): We  call this "property damage liability." 
  • Pay your medical bills (not required): We call this "personal injury protection" or "PIP."
  • Pay someone else's medical bills (required/min. $30,000 per person / $60,000 per accident): We call this "bodily injury liability."

Like most states, North Carolina requires all drivers to purchase a minimum amount of liability insurance. These mandatory limits ensure that drivers are prepared to pay for damage and medical bills for others if they cause an accident. 

The driver who caused the accident is responsible for covering the cost of damage.

Despite laws that require car insurance in North Carolina, sometimes people drive without any coverage. These drivers have no financial backup plan for accidents, and are likely to be unable to pay for damage if they cause an accident. 

While North Carolina has a relatively low percentage of uninsured drivers, you are still at risk. But with uninsured motorist coverage, you can have peace of mind and the protection you need if an uninsured driver hits you. Uninsured motorist coverage pays for your vehicle repairs and medical expenses if you are in an accident and the at-fault driver does not have insurance. 

An independent insurance agent compares multiple companies to find the best policy for your needs.


Popular Questions about North Carolina Home Insurance

Homeowners in the US pay around $1,173 per year for home insurance. North Carolina residents pay $1,075 per year, on average. While not everyone pays the same amount, this is great news for North Carolina homeowners, who pay less than most Americans for this important coverage.

Homeowners insurance is an essential safety net for the unexpected. If your home is damaged or destroyed by fire or weather, or you experience a break-in, you need homeowners insurance to help you repair or replace your home and your belongings. Without it, you could face serious financial consequences.

Pay for repairs to your home and your belongings.

  • Example: A tree falls on your house, and rain ruins your 60” TV.

Pays for someone else’s injuries or property damage when it’s your fault.

  • Example: Your kid is playing baseball and accidentally hits the ball through your neighbor’s window. 

Pays for temporary living expenses when your home is damaged.

  • Example: You need a hotel while your home’s roof is being repaired due to damage after a severe storm.

  1. Hurricanes and tropical storms
  2. Burglary and property crimes
  3. Flooding and water damage
  4. Severe storms and lightning
  5. Fires

Insurance companies spent $1,379,438,000 on homeowners claims in North Carolina in 2016. 

(That’s a lot of unfortunate events happening to North Carolina homeowners.)

Insurance carriers calculate the cost of a home insurance policy by asking ,“How likely is it that something bad will happen?” The more likely it is that something bad will happen, the more expensive the home insurance policy will be, and vice versa. We call these potential disasters “risk.”

Below are two examples of risks facing homeowners in the state of North Carolina.

Crime

Even residents of the safest communities can be victims of crime, and in North Carolina the burglary rate is higher than the national average. North Carolina homeowners should take precautions to protect their homes from break-ins. And they need homeowners insurance to make sure they have financial backup should the worst happen.

  • US burglary rate: 4.69 (per 1,000 households)
  • NC burglary rate: 7.10 (per 1,000 households)

Weather

Homes in North Carolina are exposed to all kinds of weather, from heavy rain and hail to full-blown hurricanes. Weather events can damage homes in an instant, leaving them uninhabitable and even destroyed. Without homeowners insurance, could you recover? 

  • NC total number of declared disasters: 58 since 1953
  • NC most common declared disaster: 25 hurricanes since 1953
  • NC number of tornadoes: 29.1 per year

An independent insurance agent compares policies from multiple companies to find you the best coverage for your needs and budget. 

Yes! There are 693 independent agents in North Carolina ready to help. A local independent agent can give you multiple policy options to choose from, so you can be sure that all of your unique risks are covered. 

Popular Questions about North Carolina Business Insurance

There were 871,376 small businesses in North Carolina in 2016. That same year, $3,582,493,000 in commercial insurance claims were paid. 

No matter what kind of business you’re in, you can experience an unexpected fire, break-in, or weather event that damages your business property. And if your business causes harm to someone else, you can be expected to pay for property damage and medical expenses for injured parties. 

North Carolina business insurance protects your business from serious losses when something bad happens. It can help you repair or replace damaged property, reimburse others, and keep your doors open when the worst happens. 

40% of small businesses are likely to experience a property or general liability claim in the next 10 years. Here are some things these companies have been using their insurance on:

  • Theft or burglary: Average cost per claim - $8,000
  • Water damage & freezing pipes: Average cost per claim - $17,000
  • Wind & hail damage: Average cost per claim - $26,000
  • Fire damage: Average cost per claim - $35,000
  • Customer slips & falls: Average cost per claim - $20,000

North Carolina business insurance will pay for covered claims so your business doesn’t have to. It gives you peace of mind so you can focus on what matters: your business's bottom line.

Here’s what a standard business insurance policy should do:

Pay for damage to your building

  • We call this “commercial property insurance.”
  • Example: A tree falls on your office building.

Pay for damage to your business property

  • We call this “business personal property insurance.”
  • Example: A fire destroys all your computers.

Pay for damage to someone else’s property

  • We call this “general liability insurance.”
  • Example: A contractor does a poor job of installing a cabinet, and it falls and breaks the homeowner's kitchenware.

Pay for someone else’s medical bills

  • We also call this “general liability insurance.” 
  • Example: A customer slips and falls on your recently mopped floor and breaks an arm.

Pay for accidents in company vehicles

  • We call this “commercial auto insurance.”
  • Example: Your salesperson rear-ends someone while driving to an appointment.

Pay for employee injuries & compensation

  • We also call this “worker's compensation.”
  • Example: An employee falls off a ladder at work and can’t work for two weeks.

Sometimes, these coverages are not enough to properly protect a business against risk. Your business most likely faces unique risks and may need additional coverages.

To make sure you're properly insured, we can match you with the right independent insurance agent who specializes in covering businesses that operate in your industry.

Most North Carolina business owners will need commercial property insurance, general liability insurance, and commercial auto insurance in order to properly protect their assets. The coverage you need depends on your business and your risk exposures.

What’s more, certain customers, vendors, suppliers, and mortgagees may require certain types of coverage in order to do business with you.

All North Carolina businesses that have three or more employees are required by law to obtain worker's compensation insurance.

It primarily depends on how risky your business is. The riskier your business is, the higher your insurance will be. Here are two examples.

  • A sole proprietor who owns a garment hemming business: $260 per year
  • A commercial landscaper with five employees who operate heavy machinery: $22,700 per year

Business insurance rates are calculated using a number of factors such as the risks to your business property, your liability coverage needs, and the amount and types of coverage you want. Policies can vary significantly by business industry, so it is best to talk with an experienced insurance agent when building a suitable and comprehensive policy for your business.

It’s usually wise to work with an independent agent in North Carolina, since they have can obtain quotes and coverage options from multiple insurance companies. Sometimes it’s difficult to find an insurance company that will offer the right coverage for your particular business when you are shopping on your own. Independent insurance agents make it easy.

  • There are 693 independent agents in North Carolina who are ready to help.
  • In 2017 our agents helped 5,674 people.

Popular Questions about Worker's Compensation in North Carolina

North Carolina worker's compensation will pay out benefits to any employee who is hurt while on the job. The coverage protects employees who experience sudden falls and accidents, and also longer-term injuries such as back and neck injuries, as well as repetitive stress injuries. 

A worker's compensation policy will also cover illnesses such as cancer that are caused by the workplace. A death benefit is paid to the surviving family members if an employee is fatally injured in the workplace. A policy will pay a lump sum payment for any permanent disfigurements that are the result of a workplace accident.

Worker's compensation insurance will cover all medical costs related to the accident, including treatments such as physical therapy. The policy will also cover lost wages and job retraining if the injured employee is unable to return to their previous job due to the injury. 

In North Carolina there are several options for purchasing a worker's compensation policy:

  • Open market: This is where the majority of businesses buy worker's compensation insurance. Private insurance companies are allowed to sell policies in the state and compete for your business. Compare policy details and ask about discounts to help lower your premium.
  • Assigned risk pool: This is an option for employers who don't have sufficient history or have been unable to obtain insurance in the open market due to risk. The NC Rate Bureau administers the assigned risk pool.
  • Self-insure: Businesses must qualify to become self-insured. 

Regardless of where you decide to purchase your worker's compensation policy, it’s best to talk to an insurance expert first. Worker's compensation can be a complicated insurance product. A Trusted Choice® agent can help you find a great policy and make sure you are in full compliance with all state laws. 

North Carolina doesn’t use the National Council on Compensation Insurance (NCCI) classification system to set class codes for employees. The North Carolina Rate Bureau sets class codes and base premium rates, which are designed to reflect how dangerous a particular job is when compared to other careers. A high-risk job will carry a higher base rate than a job that has a lower accident and claim rate. 

Class codes are used to identify the various types of workers at a business and set a base rate for their worker's compensation premium. Rates are reviewed on a yearly basis, so your worker's compensation costs will fluctuate.

Here's an example of how base rates are used to set premiums:

North Carolina classification code: 5190 Electrical 
Base rate: $4.57
Employer payroll: Example: $100,000
Premium calculation: $4.57 per $100 or 4.57% of payroll.
Estimated annual premium: $4,570

Most businesses will have more than one class of employee. This electrical company could also employ sales, accounting and administrative staff in addition to their electricians. All of these different employee types would fall under different class codes. 

In order to calculate the entire premium for your business, you would need to total the various class codes and resulting premiums.