The state mandates that if you own a vehicle, you must have insurance to protect that vehicle. Your N.C. auto insurance policy is designed to provide protection against the many risks that surround owning and operating a vehicle. Keep in mind that each and every time you get behind the wheel, you run the risk of causing an accident. Are YOUR N.C. auto liability insurance limits right for you?
The Purpose of Auto Liability Insurance
Imagine you are on your way to work, consumed with the many daily tasks you have in front of you, when you fail to see the red light and cause an accident, which injures several people and causes significant damage to 2 other vehicles. Will your current auto insurance policy liability limits adequately cover ALL of the damages?
Your N.C. auto liability insurance provides protection for accidents resulting in bodily injury or property damage (up to the limits of liability) for which you are held responsible. If the above scenario were to happen, you need to be sure that you have high enough liability limits to protect you; otherwise you may be looking into your own pocketbook to pay the difference above and beyond your limits of liability provided under your N.C. auto insurance policy.
What Are Auto Limits of Liability?
If you look at the Declarations page of your N.C. auto insurance policy, you may see something that looks like 250/500/100. These numbers represent your limits of liability provided under your auto insurance policy. If you are found negligent in an auto accident, your policy will provide protection as follows:
- $250,000 is the coverage available per person injured as a result of your negligence (per accident)
- $500,000 is the maximum amount your policy would cover for ALL of the injuries sustained (per accident)
- $100,000 is the coverage for the total amount of property damage (per accident)
The limits of liability will provide protection for the damages you cause to others as a result of your negligence, within the limits, but does not cover any damages to your vehicle or any injury to you. This would be a separate insurance coverage under your insurance policy and you would need to speak with your N.C. independent insurance agent regarding any other coverage options available.
How Much is Enough?
Regardless of how cautious you are when you operate your auto, accidents DO happen and if you cause an accident, you MUST be prepared. If your limits of liability for property damage are $25,000 and you damage a vehicle that is valued at $40,000, YOU will be responsible for paying the difference out of your own wallet and could be faced with a lawsuit.
The N.C. minimum limits of liability are 30/60/25 but keep in mind it doesn’t take long to exhaust these limits if the damages are significant. If you cause an accident and 3 people suffer extensive injuries, you may easily be dealing with medical bills in excess of $100,000 per person. If you only have the minimum amount of liability coverage mandated by the state, you may exposing yourself to a lawsuit, garnish of wages, or confiscated assets.
Basically, you never want to skimp on your auto liability insurance coverage. The additional coverage comes at a nominal fee and is well worth the peace of mind. Avoiding potential financial destruction by spending a few extra dollars is well worth it! Contact us TODAY at 866-869-3335 to see what coverage options are best for you!