Are you confident that you have enough insurance coverage in case you get into an accident with an underinsured motorist? It’s a question that many drivers don’t often consider, but it’s an important one. Understanding underinsured motorist (UIM) coverage and whether or not you need it can provide you with valuable peace of mind on the road. But what is Underinsured Motorist coverage?
In this article, we will delve into the details of underinsured motorist coverage, explaining what it is, how it works, and whether or not it is a necessary addition to your insurance policy.
What Does Underinsured Motorist (UIM) Coverage Mean?
In North Carolina, motorists are required to buy automobile liability insurance with limits of only $30,000 per person and $60,000 per accident to protect others from their carelessness. Because it’s all that is required, that’s all most people have. That means that most drivers on our highways have policies that will pay, at most, $30,000 for each person injured by that driver’s carelessness, and no matter how many people are injured, the most that the driver’s insurance company will pay is a total of $60,000.
If you have been to the doctor’s office or the hospital you know how expensive modern medicine is, and it’s easy to understand that $30,000 is not a lot of money, medically speaking. Moreover, people injured in automobile collisions may be out of work and have lost wages and other expenses. It is easy to see that the insurance required in North Carolina can be woefully inadequate to compensate those injured by inattentive drivers. Fortunately, there is a way motorists can protect themselves from careless drivers who have only minimum limits policies. It’s called Underinsured Motorist (UIM) coverage.
UIM is insurance you purchase. It pays you if you are injured by another driver when that driver does not have enough liability insurance to compensate you for your injuries. UIM coverage is purchased through your insurance agent along with your insurance policy. North Carolina law requires insurers to provide UIM to drivers who purchase policies with liability limits greater than the minimum limits of $30,000 per person/$60,000 per accident. So, if you buy an auto policy with liability limits of $50,000 per person/$100,000 per accident, for example, you automatically will receive UIM coverage in the same amount.
Why is Underinsured Motorist (UIM) Coverage Important?
On its face this makes no sense – the accident wasn’t your fault, why should your own insurance company have to pay? Well, this is the world we live in! One of the hardest parts of my job is telling a client that the at-fault driver did not have enough insurance to pay the bills and the client has no UIM coverage to cover the shortfall. The only prudent way for drivers to protect their families is to purchase UIM insurance – and lots of it. I recommend everyone get the maximum, $1,000,000 per person/$1,000,000 per accident. And as far as insurance goes, UIM is quite inexpensive.
What Should You Consider When Deciding Whether to Get Underinsured Motorist (UIM) Coverage?
When deciding whether to get Underinsured Motorist (UIM) coverage, there are a few important factors to consider. First and foremost, you should assess your own risk tolerance and financial situation. UIM coverage can provide an additional layer of protection in case you are involved in an accident with a driver who has inadequate insurance coverage.
Also, consider the minimum insurance requirements in your state. If the minimum coverage is low and you want to ensure that you have adequate protection in the event of an accident, UIM coverage can be a smart choice.
Next, evaluate your existing insurance coverage. If you already have comprehensive auto insurance, it is worth reviewing your policy to determine if UIM coverage is already included. If it is not, you may want to consider adding it for the additional protection it provides.
Oxner + Permar Law has years of experience representing injured people in North Carolina. If you have been involved in an automobile accident, contact us today for a free consultation.
