Do I Need Uninsured Motorist Coverage?

 

Although you probably carry vehicle insurance coverage as required in North Carolina, you may never expect to be in a car accident, although accidents happen every day here in the Triad Region of N.C.  What's worse than being in a car accident is being in an accident where the other driver is at fault and he or she doesn't have insurance.  This may surprise you: according to the Insurance Information Institute (III), nearly 10% of North Carolina's drivers are driving without vehicle insurance.  

Required By Law

In answer to the question of whether or not you need uninsured motorist coverage (UM), the answer is "YES."  UM is required of all drivers in NC in the same minimum amounts as liability protection, which is also required:

• $30,000 bodily injury protection for one person per accident
• $60,000 bodily injury protection for all persons per accident
• $25,000 property damage per accident

How Much Is Enough?

If you're carrying the mere minimum coverage for either UM or your liability protection, consider what the real costs would be if you were involved in a serious auto accident, your fault or not, $25K may be enough to cover the repairs or replacement of a single vehicle, but maybe not.  Medical costs have shot through the roof in the past few years, including hospital and doctor's costs, not to mention long-term costs for disabilities resulting from a car crash.  There's also lost wages to consider.

Experts suggest that when purchasing your liability coverage and your uninsured motorist coverage that you increase the benefit amounts to several times the minimums required.  Any costs not covered by your uninsured motorists benefits may likely have to come out of your own pocket, although you may be able to claim against your base policy if you have collision protection or medical benefits protection.

When Does Uninsured Motorist Insurance Pay?

Uninsured motorist insurance typically covers the following:

• An accident that's caused by an uninsured driver
• An accident caused by a driver whose insurer has gone bankrupt
• An accident caused by a motorist whose insurance company denies liability
• An accident caused by a driver driving an uninsured vehicle despite having insurance himself

Besides the fact that uninsured motorist and underinsured motorist coverages are required by North Carolina state law, it would still be an important coverage to have in light of the fact that NC has so many uninsured motorists.