Protect Yourself With Proper Insurance

How much insurance coverage do you have on your automobile? Many people answer "plenty," "whatever I had to have," or "full coverage." Unfortunately for those folks, they often learn that they do no, in fact, have nearly enough coverage, much less than "plenty."

State law establishes minimum limits for automobile insurance. In North Carolina, limits are set at $30,000 for a personal liability automobile policy. If you did not request more coverage when you bought your policy, you may have only $30,000 of protection. That amount covers personal injuries to someone else. A separate policy limit of $15,000 is available to cover damage to property.

You may have seen your coverage expressed as $30,000/$60,000 or 30/60. This means that, in the event that you cause a collision or injure someone else, your policy will pay up to $30,000 per person and up to $60,000 per incident. While exact statistics are not available, our firm's experience suggests that more than 90 percent of licensed drivers have only minimum coverage.

Liability coverage protects you when you are in a collision that is your fault. If you're not paying attention and run a red light, then your liability policy is responsible for paying for the damages if you injure someone or their property. If someone isn't permanently injured, and has perhaps three or four thousand dollars worth of medical bills, then $30,000 worth of coverage should fully protect you. However, what if you run a red light and hit a school bus with 20 students? What if there is only one person in the car, but that person is a surgeon who makes thousands of dollars each week, and has to miss three months of work to complete rehabilitation and therapy? Suddenly, $30,000 becomes a much smaller number. As a general rule, injured parties in a collision are entitled to collect medical expenses, lost wages, and compensation for pain and suffering.

If you have only $30,000 in liability coverage, but have other assets, you could easily find yourself personally liable for the remaining damages. Just how large that amount is depends on how bad the damages are. Liability coverage, therefore, is critically important to protect yourself, your assets and your lifestyle.

Perhaps even more important is the second function of your automobile insurance policy, which is a function many people never consider - uninsured and underinsured motorist coverage (often referred to as UM/UIM). These two types of coverage are just what they sound like. Uninsured functions when another person injures you in a collision but has no insurance at all. Underinsured provides additional coverage to you when the person who hurts you has insufficient coverage.

Many ask, "Why have insurance at all if nobody else is going to carry it?" Purchasing thorough insurance coverage protects you, and doesn't leave that decision up to some random driver who may not even have a license, is out joyriding, runs a light, and crashes into your car. Making sure that your insurance coverage is sufficient is one of the easiest ways to protect yourself and your family from catastrophe.

The best way to make sure you have the correct coverage in the amounts you need and want is to carefully review your policy, and contact your agent or your insurance company for a complete review of your coverage amounts. Ask the person you're talking with to send you a letter confirming the details and your coverage limits.

Insurance exists to protect people. Take this opportunity to protect you and your family. If you have questions about your coverage, call us or visit our website.