Tom's Blog
Helpful Tips to Avoid Uninsured/Underinsured Motorists
Owning and operating a vehicle in North Carolina requires you to carry auto liability insurance, as mandated by the state. While this law sounds good in theory, the reality is different. Just because insurance is required doesn’t mean every driver on the road is insured, or that those who are have adequate coverage. Here are some helpful tips to avoid the risks posed by uninsured and underinsured drivers.
The Minimum Limits of Liability for North Carolina Drivers
In North Carolina, the minimum required limits for auto insurance are 30/60/25. These limits are listed on the Declarations Page of your policy and indicate how much your insurance carrier is obligated to pay for claims where you’re liable.
The numbers represent the maximum payout for each occurrence. The “30” stands for $30,000, which is the maximum per person for injuries in an accident. The “60” means $60,000 total coverage for all injured parties. Finally, “25” refers to $25,000 for property damage per occurrence.
Accidents Happen
No matter how cautious you are, you can’t control other drivers. Even if you have adequate insurance and practice safe driving, you still risk encountering someone who lacks insurance or has insufficient coverage.
Imagine you’re driving on a two-lane highway when another driver crosses the center line and hits you head-on at 70 mph. Your new car is totaled, and both you and your spouse sustain severe injuries, requiring extended hospital stays and surgeries. Your combined medical bills now total $250,000.
The at-fault driver only has the minimum limits of liability required by North Carolina. That means the maximum payout is $30,000 per person, with a total of $60,000 for both you and your spouse. For property damage, $25,000 won’t come close to covering the cost of your new car.
Where the Problem and Solution Lie
The at-fault driver’s insurance is exhausted, and you’re left with significant medical bills and damages. This is where your Uninsured/Underinsured Motorist (UM/UIM) coverage becomes essential.
UM/UIM coverage steps in when the at-fault driver’s insurance runs out, covering remaining medical bills, lost wages, disability, and property damage—up to the limits of your UM/UIM coverage.
In cases where the at-fault driver has no insurance at all, your UM/UIM coverage will still apply. Many drivers ignore the law and drive uninsured, but having the right amount of UM/UIM coverage ensures you’re protected if you’re their next victim.
Review Your UM/UIM Coverage Today
At Paramount Insurance Agency, we understand the N.C. auto insurance protection you need. If you have questions about your UM/UIM coverage or want to review your current liability limits, call us today at 336-869-3335.
