Understanding Your Auto Insurance Policy
Your vehicle's insurance coverage contains many technical terms that can be confusing and difficult to understand. When choosing insurance in North Carolina, most people choose to select only the minimum limits required by law, either on the recommendation of an insurance agent or to reduce costs. While this choice may seem convenient, it's not always the safest, especially in the event of a serious car accident.
Selecting only the minimum limits can significantly limit your recovery options if another negligent driver injures you, especially if you don't have underinsured motorist (UIM) coverage.
Differences Between UM Coverage and UIM Coverage
Uninsured Motorist (UM) Coverage
Uninsured motorist (UM) coverage is used when the at-fault driver does not have an active insurance policy.
In North Carolina, UM coverage is required by law, ensuring that if an uninsured driver causes an accident, you can use your UM policy to cover bodily injury and other related damages.
Underinsured Motorist Coverage (UIM)
On the other hand, underinsured motorist (UIM) coverage is triggered when the at-fault driver does have insurance, but their coverage is insufficient to cover all of the damages you have suffered.
Practical example:
- Sally crashes into Sam and admits fault.
- Sally has only the minimum policy limits in North Carolina ($30,000).
- Sam's injuries total $75,000.
- Sam could recover the $30,000 from Sally's policy, but would still need to cover an additional $45,000.
- If Sam purchased UIM coverage on his policy, he could claim additional funds through his insurance.
- Without UIM, Sam would have to absorb the rest of his expenses out of his own pocket.
Why Should I Consider Purchasing UIM Coverage?
Although UM coverage is mandatory in North Carolina, UIM coverage is not. This additional coverage is often very affordable and can be vital to protecting your finances after a serious accident.
Benefits of having UIM coverage:
- Covers medical expenses not compensated by the at-fault driver's insurance.
- Helps pay lost wages due to temporary or permanent disability.
- Covers long-term medical treatment and rehabilitation.
- Protects your assets from accidents caused by underinsured drivers.
Bottom line: UIM coverage acts as a safety net for you and your family.
How Can You Check or Update Your Coverage?
If you're not sure whether you have UIM coverage on your auto policy, we recommend:
- Review your current policy: Look for the sections dedicated to "Uninsured Motorists"
- Contact your insurance agent: Request written confirmation of your coverage level and request quotes to increase it if necessary.
- Update your policy: Consider expanding your coverage to better suit your financial situation and family needs.
Remember: It's better to invest a little more in protection now than to face devastating expenses after an accident.
Were you in a car accident? We can help.
At Shankle Law Firm, we specialize in protecting the rights of car accident victims in North Carolina. We understand that the details of the claims process can be complicated, and that identifying all possible sources of compensation is critical to your recovery.
We invite you to contact us today for a free consultation with Maggie Shankle, a board-certified personal injury and workers' compensation attorney.
*Please Note - The content on this website is for informational purposes only and does not constitute legal advice. Viewing this site, using information from it, or communicating with Shankle Law Firm, PA through this site does not create an attorney-client relationship. For legal advice tailored to your situation, please contact us directly at (704) 370-1212.