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AUTOMOBILE INSURANCE BASICS
■ What happens if I have a lapse of liability insurance?
Whenever your liability coverage is cancelled or nonrenewed,
your insurance company is required to notify the North
Carolina Division of Motor Vehicles (DMV). The DMV is required
to notify you when they receive the notication. If there is a
penalty, the DMV will advise you of such and what action, if
any, that you need to take.
■ Will my policy provide the required liability coverage when
traveling to other states?
Yes, your policy will automatically meet the minimum
requirements of other states in which you are traveling.
■ What about driving in Canada and Mexico?
Your policy will cover you and meet the requirements of
Canada. Your policy WILL NOT cover you in Mexico. In the
border states, you can purchase Mexican liability policies from
agents who specialize in it.
■ Are family members covered by my policy?
Yes, family members are insured under your policy. Family
member is dened in your policy as a person related to you
by blood, marriage or adoption who is a resident of your
household. This includes a ward or foster child. Please note
these family members should be listed as drivers under your
policy.
■ Do I need to purchase coverage when I rent a car?
Under certain conditions your automobile policy may provide
coverage while using a rental vehicle. However, contact your
agent for specics.
■ Is ood damage covered?
Yes, if you have purchased Other Than Collision
(Comprehensive) coverage.
■ Are cell phones and stereo equipment covered?
Stereo equipment, cell phones, televisions, scanners and other
media may be covered under certain conditions. You should
check with your agent to make sure you are properly covered.
FREQUENTLY ASKED QUESTIONS
■ When I buy an additional car or replace a car, is the new car covered automatically?
Yes, as long as you notify the insurance company within 30 days after acquiring a new vehicle. Additional
vehicles will have the broadest coverage of any vehicle listed on your policy. Replacement vehicles will have
the same coverage as the vehicle it replaced. If you do not notify the company within 30 days, there will be no
automatic coverage.
■ What happens if I drop coverage on a nanced vehicle?
First, it is a violation of your nance contract and may put your loan in jeopardy. Second, the lender could place
single interest coverage on the vehicle and add the premium to the loan. The coverage is expensive and does
not provide any coverage for you.
■ What if I buy a motorcycle?
The automobile policy, if not amended, does not provide any coverage. You can endorse your policy so that it
will extend the coverages to your motorcycle and/or you may purchase a separate motorcycle policy.
■ Does my liability insurance cover me for liability while I am using my vehicle in service of a Transportation
Network Company (TNC) such as Uber and Lyft?
No, the automobile policy contract does not cover for liability arising out of the ownership or operation of a
vehicle while it is being used as a public livery or conveyance. This includes but is not limited to any period of
time that insured is logged into a TNC as a driver, whether or not a passenger is occupying the vehicle.
INSURANCE FOR YOUNG DRIVERS
■ I’m going to college in another state, and my car is still registered in North Carolina. Will my (or my parents’)
North Carolina policy cover me?
Yes, coverage would still apply. Your premium may be adjusted because of where the vehicle is now located.
■ My daughter is going away to college. Can my company force me to keep her on the policy if I want to
remove her?
Yes, your company still must cover her as long as her permanent residence is your home. Even if she doesn’t have
a vehicle with her, your policy covers her for liability when she may borrow a vehicle at school and when at home
on visits.
■ I’m enlisting in the military. Does my policy still cover me if I’m stationed in another state?
Your policy will automatically meet the other state’s liability requirement. When it is time to renew your policy
you may be required to purchase insurance in the state where you are stationed.
■ My son has received his driver’s license. Do I have to add him to my policy if he drops his own insurance
policy?
Yes, as long as he is a resident of your household. However, you must notify your agent or company. Failure to do
so could jeopardize your coverage.
■ My 19-year-old son no longer lives with me. What can I do to remove him from my policy if the company
wants to keep him on my policy?
Showing proof of insurance with another company can help you remove him. Also, show the company any
documents that will help prove that a change of address has taken place. Examples of these documents can
include lease agreements, utility billings or receipts, and a current driver’s license.
■ Does my child have to be rated on the most expensive vehicle?
No, the rates should apply to the vehicle your child principally operates. If the child is an occasional operator, the
rates would apply to the vehicle your child most frequently operates.