In previous blog posts we discussed the different types of automobile insurance available in North Carolina.
The coverages below may be purchased in addition to your basic automobile coverage. You will be charged an additional premium for electing these options.
Automobile Death Indemnity, Specific Disability and Total Disability Benefits Coverage
This endorsement will provide a benefit for death, dismemberment, specific disability and total disability resulting from an automobile accident.
Miscellaneous Type Vehicle Endorsement
Motorcycles, golf carts, travel trailers and other similar type vehicles are afforded coverage by this endorsement. If your covered vehicle is a motorcycle, the endorsement will extend the medical payments coverage to motor vehicles with fewer than four wheels.
Coverage for Rented Vehicles
This endorsement provides coverage for you or a family member who rents a rental vehicle on a daily basis for less than 22 consecutive days. It is a good idea to have this coverage. The rental car company will try to sell you this insurance when you rent a car and the coverage is expensive. Also, some credit cards provide this coverage as a benefit, so check before you purchase it separately.
Coverage for Damage to Your Auto (Customizing Equipment Coverage; Coverage for Audio, Visual, and Data Electronic Equipment)
Through this endorsement, the limits of liability are increased for custom furnishings and custom equipment, and for additional permanently installed electronic accessories.
Towing and Labor Costs Coverage
This coverage pays for towing and labor costs each time your covered automobile or any non-owned automobile is disabled or the keys are lost, broken or accidentally locked in the car. You should perhaps compare the premium for this coverage versus similar coverage offered by car dealerships of the American Automobile Association (AAA).
Extended Transportation Expenses Coverage, (Rental Reimbursement)
This coverage will pay, up to a specified rate and maximum total amount, transportation expenses incurred by you or loss of use expenses for a rental car for an extended period of time.
You should keep this in mind, the actual automobile insurance policy, whether it provides the basic coverage or has some of the additional coverage we have recommended, is standardized in North Carolina. That means that regardless from whom you buy your automobile policy, the language in the policy will be the same. Therefore, in considering from whom to purchase your insurance you should consider three things (not necessarily in this order): (1) the amount of the premium; (2) the reputation of the carrier for handling claims; and (3) your relationship with your agent. Your agent can be very helpful in navigating you through your various options.
The North Carolina Department of Insurance has an excellent brochure explaining the types of coverage. For more information on this topic, please go to:
North Carolina Automobile Insurance Coverages.
Please feel free to share this blog with your friends and family on this often misunderstood area of the law.