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North Carolina Department of Insurance - FAQs About Auto Insurance

Publisher: North Carolina Department of Insurance
Edition: undated page
Last checked: 2026-09-29
Status: Publication of the North Carolina Department of Insurance, a state agency

Edition and licensing notes

Publisher. North Carolina Department of Insurance (ncdoi.gov)

Edition. undated page; retrieved 2026-09-29

Status. Publication of the North Carolina Department of Insurance, a state agency.

Read the official text Practice questions from this source

What this document is

North Carolina Department of Insurance - FAQs About Auto Insurance is a reference published by North Carolina Department of Insurance (ncdoi.gov). It is one of the North Carolina documents that insurance license exam questions are written from, including north carolina property & casualty, north carolina personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

N.C. Department of Insurance, FAQs About Auto Insurance (daughter away at college)
“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.”
N.C. Department of Insurance, FAQs About Auto Insurance (transportation network company)
“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...”
North Carolina Department of Insurance, FAQs About Auto Insurance (web page), Are family members covered by my policy?
“Family member is defined 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.”
North Carolina Department of Insurance, FAQs About Auto Insurance (If my only coverage is liability insurance, does my policy cover my medical and car repair bills?)
“No, liability insurance only pays for other people’s injuries and property damage for which an insured driver becomes legally responsible.”
North Carolina Department of Insurance, FAQs About Auto Insurance (Why is it harder to get insurance if drivers in my household have bad driving records?)
“According to the Liability Coverage section of your policy, any family member is considered an insured. Anyone driving your covered vehicle with permission is also covered by your policy.”
North Carolina Department of Insurance, FAQs About Auto Insurance (I am enlisting in the military. Does my policy still cover me if I am 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.”
North Carolina Department of Insurance, FAQs About Auto Insurance (undated page retrieved 2026-09-29), How can my loan balance be more than my insurance company says my car is worth?
“You may be able to purchase a type of coverage called Guaranteed Automobile Protection (GAP). GAP coverage covers the difference between the actual cash value of your car and your loan balance. This is typically only available for new vehicles. Otherwise, you can be held responsible for the difference.”
North Carolina Department of Insurance, FAQs About Auto Insurance (undated page retrieved 2026-09-29), If I am in an accident and someone else is at-fault, do I get a rental car while mine is being fixed?
“It is common practice for insurance companies to allow a rental vehicle while your car is being repaired. However, there are no statutes or administrative codes that require an insurance company to offer a rental vehicle.”
North Carolina Department of Insurance, FAQs About Auto Insurance (undated page retrieved 2026-09-29), Can a company refuse to renew my policy because of claims that were not my fault?
“Your company can nonrenew your Other Than Collision (Comprehensive) and Collision coverages if you do not meet its underwriting criteria, as long as the company gives proper notification. Many companies will use frequency of claims, taking into account at-fault as well as fault-free claims, as one of their criteria.”
NC DOI FAQs About Auto Insurance, How long can a company take to pay my claim?
“After receiving a claim an insurance company has 30 days to acknowledge the claim. The acknowledgment shall be one of the following, make an offer of settlement, deny the claim, make payment of the claim, or advise the claimant that the investigation of the claim is ongoing. Loss and claim payments...”
NC DOI FAQs About Auto Insurance, Why didn't I get a notice that my insurance policy was canceled?
“When canceling your Liability, Medical Payments and Uninsured Motorist or Uninsured/Underinsured Motorist Coverages for non-payment of premium, your company must mail a notice to your last known address at least 15 days in advance. Sixty days notice is required for all other reasons. The insurance...”

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Questions about this source

North Carolina Department of Insurance - FAQs About Auto Insurance is a reference published by North Carolina Department of Insurance (ncdoi.gov). Edition: undated page; retrieved 2026-09-29.

No. This page summarizes the document and links to the official version. Always rely on the text published by North Carolina Department of Insurance (ncdoi.gov) for the current law.

Practice questions for North Carolina Property & Casualty, North Carolina Personal Lines cite this document.

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