No, collision insurance is not required in North Carolina because it is an optional type of coverage in every state. While North Carolina does not require it, your lender or lessor may require you to carry collision coverage to pay to repair or replace your vehicle after collisions with other vehicles or objects while you are driving.
Collision insurance will typically pay up to the actual cash value of your vehicle, minus any deductible. Coverage costs around $382 per year, on average.
Types of Car Insurance Required in North Carolina
- $30,000 in bodily injury liability per person
- $60,000 in bodily injury liability per accident
- $25,000 in property damage liability
- $30,000 per person ($60,000 per accident) in uninsured motorist bodily injury coverage and $25,000 in uninsured motorist property damage coverage
You should get collision insurance if it is required by your lender or lessor, if you cannot afford to replace your car in the event that it gets totaled in an accident, if you drive in heavy-traffic areas where your car is likely to get damaged, or if you frequently are at fault for accidents.
Keep in mind that most insurers will also require you to get comprehensive insurance if you purchase collision insurance. Collision, comprehensive and a state's minimum car insurance requirements are generally what people mean when they talk about full coverage.
To learn more, check out WalletHub's guide to collision insurance.
This answer was first published on 10/02/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
