If you own/operate a vehicle, N.C. mandates that you carry auto liability insurance on that vehicle and while that may sound easy enough, it can sometimes be more difficult than it sounds. Having a poor driving record revealing multiple motor vehicle accidents and/or violations could be a game changer when it comes to either getting N.C. auto insurance or continuing liability insurance. A tarnished driving record could generate the insurer’s need to cede your auto liability insurance, but if you receive notice that your N.C. auto liability insurance is ceded, will you know what it means?
Typically, nobody can be rejected for auto insurance coverage*; however, your current N.C. insurance carrier can decide to turn your insurance policy over to the North Carolina Reinsurance Facility (NCRF) if your risk appears too high to continue. *Exclusions may apply so if you have questions, contact your local N.C. independent insurance agent.
NCRF and What it May Mean to You
The North Carolina Reinsurance Facility has been in operation for over 45 years and was devised to provide auto liability insurance to those drivers considered “high risk” in an effort to spread the risk amongst all the insurers who are members of the Facility versus that one particular insurer continuing to absorb all the losses directly.
An insurance company can decide to “cede” your insurance policy if your driving record is poor and pass it on to the NCRF, but if this happens, you won’t have to stay in the Facility forever. The choice is up to you to improve your driving record for the next two years in an effort to return to the voluntary market where the rates should be more affordable. Keep in mind, the insurance premium for high-risk drivers in the NCRF are characteristically 35% higher than the voluntary market.
The NCRF is designed to provide auto liability insurance and typically does not include comprehensive or collision coverage for drivers considered high-risk. However, there are N.C. insurers who specialize in non-standard insurance for those people needing or wishing to have comprehensive or collision on their auto.
Twin City Insurance Agency Can Answer Your Questions
If you receive notice that your N.C. auto liability insurance has been ceded, you can contact us at 828-464-2643 with your questions and we can assist you accordingly. We are a N.C. independent insurance agency that understands that some insurance companies are more apt to cede your auto liability insurance policy than others and we can work with you to find coverage options and rates that may benefit you with another carrier. We have access to coverage options offered by the top rated insurance carriers and can recommend a plan of action that may be suitable to you and your current N.C. auto insurance needs as a high-risk driver.