North Carolina law requires that the owner of a motor vehicle carry a minimum of $30,000 per person and $60,000 per accident in bodily injury liability coverage to protect other drives from their negligence. This means that even if you incur damages in excess of $30,000, the at-fault party’s insurance company will only pay, at the most, $30,000. Because the at-fault driver does not have enough insurance coverage to reimburse the injured driver for all their related expenses underinsured motorist coverage allows the injured party to be further reimbursed through their own insurance policy.
Underinsured motorist coverage or UIM provides coverage when the at-fault party’s insurance coverage is insufficient to fully compensate the injured party. This type of insurance is available under the injured party’s own automobile insurance policy. In fact, in North Carolina insurance companies are required to provide their insureds an opportunity to purchase UIM when they purchase liability policies with limits in excess of the $30,000/$60,000 minimum.
If you have been involved in an accident with an individual who is uninsured or underinsured and you have questions about your options, contact Miller Law Group for a free consultation.