The following is a brief summary of auto insurance coverages normally seen in North Carolina:


A. Liability Insurance


Liability insurance covers damages (personal injury and property damage) that you cause to another person. Liability insurance is required by law, and in North Carolina, all vehicle owners are required to have at least $30,000 of coverage. We strongly recommend that everyone have more than the statutory minimum – preferably at least $100,000 – as it is very easy to exceed $30,000 in damages in a serious auto accident. A judgment exceeding your liability limit could be collected out of your own assets, so it is wise not to skimp here.


B. Uninsured/Underinsured coverage


UM/UIM coverage (as it’s known) allows you to recover from your own insurance company if you are hit by someone who either has no insurance (uninsured) or not enough insurance (underinsured). UM/UIM coverage is not mandatory in NC, and you have to pay extra for it; however, if you are badly injured at the hands of a driver with minimum $30,000 limits, you will probably never be able to obtain a fair recovery for your losses unless you have UM/UIM coverage. We recommend at least $250,000 in UM/UIM coverage.


C. Medical payments (Med pay) coverage


Med pay coverage can be used to cover your own medical expenses and deductibles incurred as a result of an auto collision, regardless of who is at fault. This coverage is usually offered in relatively small amounts between $1,000.00 and $10,000.00. Med pay coverage is inexpensive and can come in handy for paying your medical bills, particularly if you are out of work as a result of your injuries. For this reason, we recommend everyone have at least $2,000 of med pay coverage.


This is but a brief overview of various types of auto insurance available in NC. For more details, contact your insurance company.


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