Your insurance policy is a necessary expense required by the state. You have to provide proof of insurance to register your vehicle and legally drive. The policy that you carry protects you if you ever cause a crash. It reduces your liability by providing coverage to other people who have injuries or property damage because of a wreck.
When someone causes a crash that damages your vehicle or hurts you, you will rely on their insurance to reimburse you for your costs and losses. The sad truth is that there are many drivers in North Carolina who don’t buy insurance to protect themselves but instead just enough to comply with the law. That attitude will lead to insufficient coverage after a crash with significant consequences.
North Carolina only mandates liability coverage
North Carolina only requires that drivers purchase bodily injury and property damage liability coverage. Although other states require no-fault medical coverage or uninsured driver coverage, drivers in North Carolina can be out on the road with a minimal amount of insurance. A driver who technically complies with state law can carry a policy with only $25,000 worth of property damage coverage and a little as $30,000 worth of bodily injury liability protection.
Imagine what it will cost to buy a new vehicle to replace the one you use for your daily commute if your insurance declares it a total loss. Think about how much a surgery would cost, and how you would miss several weeks of work and therefore wages after your operation. It isn’t hard to picture a scenario in which another driver’s insurance leaves you with medical bills or vehicle costs that insurance won’t cover.
What happens when a driver has bad insurance?
If another driver didn’t carry an appropriate amount of liability coverage given the damage they caused in the wreck, they may have liability for your losses. In some situations, you could file a civil lawsuit to seek the full value of your vehicle, lost wages or medical expenses. If you carry more comprehensive insurance, you may also have the option of filing an underinsured motorist claim against your own policy.
Reviewing the insurance policies, learning about your rights and making informed decisions can help you avoid financial losses caused by a car crash.