Automobile Insurance Coverage

Every day people are injured or killed by another driver's negligent operation of his or her automobile. Often, the injured party or their family finds out that the negligent driver has no auto insurance coverage or minimum insurance coverage. Who then will pay for the medical bills, the lost wages, the future medical bills, the loss of an arm or the loss of life? It is critical that you be informed and are knowledgeable of the various types of insurance coverage available. You cannot depend solely upon your insurance agent for your coverage choices.

There are several types of automobile insurance coverage.

Liability coverage is mandatory in North Carolina. This covers the other driver, occupant or pedestrian if you are negligent and injure them. If your liability coverage is less than the injured party's damages, then your personal assets may be at risk. Many soft tissue injuries today may exhaust minimum liability coverage. Make sure that you have sufficient liability coverage.

Medical Payments coverage is not mandatory and not all agents sell this coverage. Medical payments insurance coverage provides a source of payment for medical bills for the driver and any occupants of your vehicle regardless of who is at fault. This coverage is relatively inexpensive and is sold in increments of $1,000.00, $2,000.00 and up to $50,000.00 and higher.

Collision coverage is not mandatory by law. However, if you finance your vehicle, your lender will require this coverage. Collision coverage covers damage to your vehicle regardless of who is at fault.

Uninsured and Underinsured coverage is perhaps the most important coverage you can purchase. This coverage covers you or your occupants when you are injured by the negligence of another driver who has no insurance or insufficient auto insurance coverage to pay for your injuries and damages. This coverage also covers you as a pedestrian if struck by a vehicle with little or no coverage. This coverage is relatively inexpensive and insurance agents do not routinely recommend this coverage. If you are injured and the other driver has little or no auto insurance coverage, your damages may not be fully compensated unless you have purchased Uninsured or Underinsured insurance coverage.

Our courts have ruled that in the field of insurance sales and purchases, caveat emptor applies. (Let the buyer beware!) It is up to you to purchase sufficient car insurance coverage, not your insurance agent! Be informed. Ask your agent about these coverage levels and the premiums of these coverage levels at various dollar amounts. Do not depend upon your agent to suggest sufficient auto insurance coverage. And, do not depend upon the other driver to have sufficient automobile insurance coverage.