When you live in Matthews, NC and commute to a different state, it can be tempting to look for insurance coverage that is appropriate for the state where you drive the most often. Even though you may commute across state lines, it is not usually appropriate to buy car insurance in a state that differs from the state where you have registered the vehicle.

Protection Across State Lines

Living in one state and driving over the border to a different state can make it confusing to determine the appropriate auto coverage for your vehicle. State laws often have different minimum requirements regarding the coverage that is appropriate; however, you want to insure your vehicle in the state where you live and have registered the car.

Even if the other state has a higher minimum requirement, buying insurance in a different state can result in losing coverage after an accident or facing penalties in your home state.

In general, many insurers will automatically adjust your policy when you are driving in a different state.

Finding an Appropriate Policy

The decision to buy car insurance that is appropriate for your vehicle can depend on your goals, budget and concerns. An appropriate policy begins with ensuring that the minimum state standards are met. After you know what you are required to carry, you can add to the policy based on your personal concerns, the vehicle and your budget.

It is not appropriate to purchase insurance in any state that differs from the one where you live and have registered the car. If you are moving, then you will need to buy a new plan for the state where you are moving and then register the car as soon as you move. Contact us to talk to an agent for more information.

Rental cars make life easier when traveling, since you aren’t dependent on taxis and public transportation when you go on vacation or travel for business meetings. One thing to keep in mind when you’re traveling to Matthews, NC is that any insurance coverage on the rental vehicle must adhere to North Carolina’s state minimum insurance coverage. This includes a minimum of $60,000 to cover injuries, $25,000 for property coverage, and you also need uninsured motorist coverage.

Rental car companies offer to insure your car when you pick it up. The rental car insurance may be a flat fee for your entire rental period, or charged on a per day basis. Before taking them up on their offer, look at your own auto insurance policy.

Your auto insurance usually extends to rental vehicles, so you may not need to purchase separate rental car insurance. Confirm that you meet the state minimum standards with your policy before choosing to forgo the rental company’s offer, however. Another rental car insurance option is to pay with a credit card that offers this type of insurance. Credit card based rental car insurance comes in two forms: primary and secondary. Primary coverage acts as full automobile coverage for the rental vehicle, while secondary supplements your existing car insurance by paying your deductible if you get in an accident. Examine the terms of a credit card based insurance option carefully to ensure you’re properly covered.

Keep loss of use costs in mind when deciding whether or not to select the rental company’s insurance. Loss of use is a cost that the company charges to cover the time period it takes to repair or replace the rental vehicle. This is not typically a cost covered by regular auto insurance, but it is by the rental company’s insurance option.

Borrowing a vehicle from a family member can make the insurance for the vehicle seem complicated. Even if you buy car insurance for the vehicle under your name, your brother is still the owner of the car and may need to have his own policy to ensure that it is properly protected. Depending on the situation, your brother may or may not be held responsible for an accident that you cause while you borrow the vehicle.

Your Insurance

In general, your car insurance policy will pay for any damages or injuries if you cause an accident while you are driving. If your brother also has coverage for the vehicle and your plan does not provide enough to pay for all of the liability costs, then the additional expense may become your brother’s responsibility since the vehicle is his property.

Taking Responsibility

Even if you do not own the car, it is your responsibility to pay for any property damage or injuries that you cause to another person. If you cause an accident, then you are liable for the accident as long as you have coverage.

When you do not have coverage for the vehicle under your own name, the liability will fall to your brother’s insurance plan in most situations. The reason is that he is allowing you to drive the car and you are not the property owner. As a result, he can be held responsible if you are not able to take responsibility for any reason.

As long as you have auto insurance under your own name for the vehicle, the responsibility of an accident that you cause will usually be handled by your policy. Contact us to talk to an agent for more information about liability protection.