Most of us do not think about
the amount of insurance we have and certainly not
how much insurance someone else has—until we need
it. There are several types of insurance that you
can purchase for your automobile: liability, collision,
comprehension, medical payments, uninsured, and
underinsured.
North Carolina
law requires you to have liability insurance.
Everyone must have minimum liability insurance
coverage of $30,000 per person up to 60,000 per
accident. Liability insurance pays anyone hurt
or damaged as a result of your negligence up to
the policy limits.
Other types of insurance are voluntary.
Collision coverage pays you for your damages when
you are negligent. If a claim is made under liability
or collision insurance, your insurance premiums
will increase. Comprehensive coverage reimburses
you for property damage due to a true accident,
such as a tree falling on your car. Medical payments
coverage reimburses you and anyone in your vehicle
for medical expenses up to the coverage limits.
Uninsured motorist coverage pays
you if a negligent driver injures or damages you
and does not have any liability insurance. Underinsured
motorist coverage pays you if the negligent driver
does not have enough liability insurance. If you
make a claim under comprehensive, medical payments,
uninsured, or underinsured motorist, your insurance
does not go up. As you can see, your insurance
premiums do not increase if you or someone driving
your vehicle is not at fault.
On an annual basis, sit down with
your insurance agent and review your policy coverages.
Ask questions about how much coverage is needed
and how much it costs. Always ask what the insurance
company is charging new customers for the same
coverage. Many times insurance companies charge
new customers less than long-time customers. Their
statistics show that if they get you signed on,
odds are you will never leave.
We recommend
that you have a minimum of $100,000 in liability,
uninsured and underinsured coverage. You should
also have at least $5,000 in medical payments
coverage. The increased liability coverage protects
your assets. The increased uninsured and underinsured
will protect you, your passenger and your family
members from uninsured and underinsured drivers.
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