If you have less than $100,000 in car insurance on your vehicle, you are rolling the dice and risking financial ruin every time you drive your car. In North Carolina, the minimum amount of insurance coverage required by law is $30,000. But what most insurance agents fail to tell you is that unless you purchase more than the minimum limits of coverage, you are really not protecting yourself or your family from irresponsible drivers, particularly younger drivers. Here’s why.
Last week, one of our new clients was on her way home from work, and the traffic in front of her slowed to a stop because a car had stopped to make a left hand turn. She also slowed down and stopped. Ten seconds later, she looked up just in time to see a large SUV barreling down on her. She recalls starting to yell, but the next thing she remembers is waking up in a hospital bed 3 days later. After 2 weeks in the trauma unit and 3 surgeries later, she is trying to figure out how to pay for her hospital bills. Unfortunately, the young girl who did not see her because she was texting and driving has the minimum limits of insurance coverage – this means that the most the young girl’s insurance company will ever pay is $30,000. The client’s medical bills are over $100,000 already, and she still has months of rehab to complete before she can return to work. There is a way to protect yourself from this very real risk.
You should tell your insurance agent that you want to have at least $100,000 in Uninsured Motorist (UM) and Under-Insured Motorist (UIM) coverage. The increase in your premium should be less than $50 every six months. If you are able, you should ideally purchase a $1 Million umbrella policy that also provides you with UM and UIM coverage. This is the best way to make sure that, if you or a loved one is seriously injured in a car accident, you have the insurance coverage to compensate you for your losses, such as medical bills and lost wages.
Too many times, we see people seriously injured by careless and reckless drivers, but the at fault driver either has no insurance or the minimum limits, and our client has no UM or UIM coverage. In order to pursue an under-insured claim (UIM), your coverage must exceed the coverage of the at-fault driver. Take the time today and call your car insurance company and get the coverage you hope you never need. I see 10 to 20 people a year who wish they had done what you have the opportunity to do today. If you have any questions about your car insurance coverage, give me a call or