In the state of North Carolina, you are legally required to purchase automobile liability insurance for any vehicle you are operating on the roads and highway. This liability insurance is required to pay for costs of injuries and damages for which you become legally responsible, but how do you know what limits you should carry on your NC auto insurance policy?
What Are the North Carolina Minimum Insurance Liability Limits?
North Carolina requires the minimum amount of liability coverage limits on an auto policy as follows:
- $30,000 for bodily injury liability per person, per accident
- $60,000 for all bodily injuries total per accident
- $25,000 for total property damage liability per accident
So, when you are purchasing the required NC auto insurance policy, you need to determine if this minimum amount of required insurance is really enough and whether it will protect you adequately if you are found liable for an auto accident.
What Coverages Are Afforded Under Your NC Auto Liability Policy?
The liability coverages afforded under a NC auto insurance policy are bodily injury (BI), property damage (PD), and uninsured motorist/underinsured motorist (UM/UIM). North Carolina law mandates that you carry UM/UIM coverage in addition to your liability coverage (same limits) so that your own medical bills and vehicle damage will be covered in the event the other driver is liable and is either uninsured or underinsured.
Each and every time you get into your vehicle, you run the risk of having an accident so you need to be aware of what can happen if you are held legally liable for damages sustained in an auto accident. Consider the following scenario so you may get a better idea of how it all works!
You are in your “insured” vehicle on a rainy day, travelling over the posted speed limit, when you lose control of your car, cross over the centerline, and hit an oncoming vehicle head on. There are 3 other people in the other vehicle that you hit and the other car is visibly a total loss.
How Will the Minimum limits of Liability Apply to Bodily Injury and Property Damage From This Accident?
The 3 injured parties, EACH, have incurred an excess of $50,000 worth of medical expenses and the treatment for each of the injured parties is still ongoing. Let’s say that you have the required minimum limits of liability of 30/60 for bodily injury, which means that the compensation is only up to $30,000 for one injured party, but not more than $60,000 TOTAL for the three injured parties. With medical bills in excess of $150,000 and still on the rise, what will you do?
Regarding the property damage claim for this accident, you have $25,000 to cover the property damages incurred from this one accident (with minimum limits of liability). Let’s assume that the other vehicle you hit was a brand new BMW that is worth way more than the $25,000 of property damage limits you have. Again, what will you do?
If you are found legally liable for causing an accident, you may be surprised about how costly bodily injuries and property damages can be and if you ONLY have the minimum required NC limits, you may not be adequately covered!
Let Us Help!
If you are inadequately covered, you may risk losing your home, savings, and future earnings so we want to help! When you are deciding on how much NC auto insurance to purchase, always consider how much you can afford out of your own pocket to pay for injuries and damages for which you may become liable. If you are found liable for damages resulting from an accident, you will only be covered up to your acquired limit of liability and the rest will be your responsibility!
We, at Paramount Insurance Agency, are here to assist you in every way in determining just how much is enough for you! To avoid being put at financial risk, contact us at 336-869-3335. We will work with you to establish the right amount of auto liability coverage that fits your lifestyle and budget so that you won’t be left asking, “How much is enough?”