Owning and operating a vehicle means you must carry auto liability insurance protection on that vehicle, as mandated by the state of North Carolina. Keep in mind this law sounds good in theory, but reality suggests otherwise. Just because insurance is mandated doesn’t mean every driver is operating their car with insurance or that those who have insurance have sufficient coverage. Find out some helpful tips to avoid the possibility of Uninsured motorist/Underinsured motorist drivers.
The Mandated Minimum Limits of Liability for Drivers in North Carolina
In North Carolina, the minimum limits of liability required for auto insurance are 30/60/25. Your acquired limits of liability are located on the Declarations Page of your auto insurance policy and reflect the total amount your insurance carrier is obligated to pay out for auto insurance claims for which you are liable.
Each number (30, 60, 25) reflects the maximum amount your insurance carrier will pay for each occurrence. For example, the number 30 represents $30,000, which is the maximum payout per person for injuries sustained in an auto accident; the 60 reflects the total coverage of $60,000 available for ALL the injured parties; and the 25 represents the total amount of $25,000 available coverage to pay for any and all damaged property per occurrence.
Regardless of how careful of a driver you are, you still have to worry about the other drivers on the road for numerous reasons. Perhaps YOU have adequate insurance protection and practice safe driving practices, but what if another driver fails to carry insurance or has inadequate insurance protection when an accident happens?
Imagine driving on a two-lane highway when another driver crosses the center lane and hits you and your spouse head-on going 70 mph. Your new car is totaled and both you and your spouse have debilitating injuries that require lengthy hospital stays and surgeries. To date, the combined medical bills are already a staggering $250,000.
You find out the at-fault driver only has the minimum limits of liability required by N.C. That means you are only entitled to a maximum payout of $30,000 as is your spouse, and together you both can only get $60,000 combined. As for your property damage claim for your new vehicle, the $25,000 won’t possibly compensate you for the value of your new car.
This is Where the Problem and Solution Exist
The at-fault driver’s insurance limits have now been exhausted and you and your spouse are left with significant medical bills and damages. This is where your Uninsured/Underinsured Motorist (UM/UIM) insurance coverage comes into play.
Uninsured Motorist/Underinsured Motorist Coverage is designed to kick in once the primary insurance has been exhausted and will provide coverage for any remaining medical bills, lost wages, disability, and property damage, up to the acquired limits of the UM/UIM coverage.
Furthermore, UM/UIM coverage can also apply if the at-fault driver has no auto insurance. Regardless of the law, many drivers have no insurance protection and if you are the next victim, you can have peace of mind by having the right amount of UM/UIM coverage.
Review Your UM/UIM Insurance Coverage Today
Twin City Insurance Agency understands the type of N.C. auto insurance protection you need and deserve. If you have any questions regarding UM/UIM insurance coverage or wish to review your current liability insurance limits, contact us at 828-464-2643.