In North Carolina, all drivers are required to carry liability insurance to cover the costs of any injuries or damages they may cause in a car accident. However, the minimum insurance requirements may not be enough to cover the full extent of damages in a serious accident. This is where underinsured motorist coverage (UIM) can be critical.
Underinsured motorist coverage is optional insurance coverage that can help protect drivers in the event they are involved in an accident with a driver who does not have enough liability insurance to cover the full extent of the damages. Here’s why UIM coverage is so important in North Carolina.
1. North Carolina’s Minimum Liability Coverage May Not Be Enough
North Carolina law requires drivers to carry a minimum of $30,000 in liability coverage per person injured in an accident, with a total coverage limit of $60,000 per accident. While this may seem like a substantial amount, it may not be enough to cover the full extent of damages in a serious accident.
For example, if you are in an accident with someone who only has the minimum liability coverage and you suffer injuries that require surgery and ongoing
medical care, the medical expenses alone may exceed $30,000. If you also factor in lost wages and other damages, the total amount of damages could easily exceed $30,000. This is where underinsured motorist coverage can be critical.
2. Underinsured Motorist Coverage Can Help Cover the Gap
If you have underinsured motorist coverage, it can help cover the gap between the at-fault driver’s liability coverage and the total amount of damages. For example, suppose the total amount of damages is $100,000. If you have $100,000 in UIM coverage and the at-fault driver only has $30,000 in liability coverage, your UIM coverage can help cover the remaining $70,000 in damages.
3. UIM Coverage is Relatively Inexpensive
While UIM coverage is optional coverage, it is relatively inexpensive compared to other types of insurance coverage. Adding UIM coverage to your policy can provide added peace of mind and protection in the event of an accident with an underinsured driver.
Underinsured motorist coverage is a critical coverage option for North Carolina drivers because it can help protect you from the financial consequences of an accident with an underinsured driver and ensure that you are able to recover the full extent of damages you are entitled to. If you don’t already have UIM coverage, it’s worth considering adding it to your policy to ensure you have the protection you need in the event of an accident.
If you’re a car accident victim and need legal help to ensure that you’re paid what’s owed to you by the other driver, contact Kellum Law Firm today – we can help. We’ve been helping local North Carolina residents get the settlements they deserve for over 40 years. Call today and schedule a free consultation with one of our experienced car accident attorneys, right here in North Carolina.