In North Carolina there are basically six types of typical automobile insurance coverage. (1) there is liability coverage which pays others that you might hurt with your car. Currently, the minimum limits are 30K per person up to 60K per accident; (2) there is property damage liability coverage to repair someone’s car you have had struck; (3) there is collision coverage which will pay for your car’s damage – even if it is your fault. Collision coverage is not required by law – but may be required by the lender who loaned you the money to buy the car; (4) there is optional medical payments coverage (“medpay”) which operates as a small health insurance policy if you are injured in an accident – regardless of whose fault it was. It does not increase your premiums. Typical limits are 1K to 5K; (5) there is uninsured coverage known as UM coverage. This will pay for your car if you are struck by an uninsured or hit and run driver; (6) lastly there is underinsurance coverage (known as UIM). This is very important coverage. If you buy UIM coverage it means that regardless of the amount of coverage of the person who caused your accident, you and your family members can never have less protection that the limits of the UIM policy you bought. There are special regulations about how to apply for UIM coverage. If you are in a serious accident, you should take your own automobile insurance policy to a knowledgeable attorney and have him explain the policy to you.
This blog does not create an attorney-client relationship. You should not rely upon this blog for legal advice, but instead should consult an attorney experienced in your area of concern.