What are the maximum split liability limits available with facility rates in North Carolina?

But even if the other driver is insured, you are still at financial risk if the costs exceed their insurance coverage amount. For added personal coverage, many drivers choose to add underinsured motorist coverage to their auto insurance policies. It is important to understand what NC auto insurance requirements are, what they actually cover, and how uninsured/underinsured policies can protect you.

What Are North Carolina’s Auto Insurance Requirements?

North Carolina law requires 30/60/25 liability limits for auto insurance. These split limits for liability are $30,000 for maximum bodily injury, $60,000 for total bodily injury from an accident, and $25,000 for maximum property damage. North Carolina also requires coverage for uninsured motorists.

(G.S. 20-279.21 NC “Motor Vehicle Liability Policy” defined.)

Maximum Bodily Injury Liability

The maximum bodily insurance is the maximum amount the insurance carrier will pay to a single person injured in an accident in which their insured is at fault. If the amount of damages exceeds the covered amount, there is often no further recovery available.

For example, if the at fault driver carries North Carolina’s minimum coverage of $30,000, but the injured party’s claim is reasonably valued at $40,000, there is a $10,000 shortfall that often goes unpaid.  This can leave the injured person on the hook for things like medical bills that exceed the $30,000.  In other words, without enough insurance to fully pay the claim, the person hurt through no fault of their own is stuck with mounting medical bills, lost wages and nothing for pain and suffering.

Total Bodily Injury Liability

Also known as aggregate liability, this is the maximum amount an insurance policy will pay for all parties injured in a single accident.  If 3 people are all seriously injured, the insurance company will only pay them out of the $60,000 total.  An accident with multiple injured parties may leave one or more of the injured persons without reasonable or sufficient compensation.

Maximum Property Damage

Uninsured Motorist

Uninsured motorist (UM) coverage is meant to protect you if you are in an accident caused by a driver who does not have liability insurance. UM policies may also cover hit-and-run accidents. North Carolina requires the UM coverage to equal the highest limits of bodily injury liability coverage. Therefore, if you carry $30,000 bodily injury liability, then you must also carry $30,000 in uninsured motorist coverage.

Underinsured Motorist

North Carolina does not require all drivers to carry underinsured motorist (UIM) coverage, but many choose to anyway and it is highly recommended you carry as much UIM coverage as you can afford. UIM policies provide you with bodily injury protection if the at-fault driver’s insurance policy is insufficient to fully and fairly compensate for you injuries, harms and damages. Usually, the UIM coverage will be equal to the highest limits of your bodily injury liability coverage. The way it works, for example, is if the at fault driver has $30,000 in insurance and agrees to pay that to the injured party, but the $30,000 is insufficient, the injured party can then make a claim against their own insurance company under the UIM coverage.  The UIM carrier gets a credit for any amount paid/tendered by the liability carrier.  So, if $30,000 is paid by the at fault driver and the injured party has $100,000 in UIM coverage, there is an additional $70,000 ($100,000 – $30,000 = $70,000) available in UIM coverage.  Keep in mind the injured party’s own insurance company will fight just as hard as the at fault driver’s insurance company to keep from paying out, even thought they are fighting their own insured.

Should I Only Carry the Minimum Auto Insurance Required by NC Law?

North Carolina may only require 30/60/25 liability insurance, but it is recommended to carry more. Having higher liability insurance can help protect you from being personally liable for huge financial burdens for medical expenses and other damages to another driver. As mentioned before, if your insurance does not cover the driver’s damages, your personal assets may be exposed and at risk.

Should I Get Underinsured Motorist Coverage?

Will My Insurance Premiums Increase If I Use My UIM Coverage?

Filing a UIM claim should not affect your insurance premium. Insurance premiums are not supposed to increase if the accident is caused by another driver (i.e. not your fault).

North Carolina Auto Insurance Requirements vs. Recommended Coverage

While insurance premiums can be high, they often pale in comparison to costs resulting from car accidents. Medical bills, vehicle repairs, and a lifetime of pain or injury can quickly add up to tens of thousands, if not hundreds of thousands of dollars. North Carolina does require a certain amount of auto insurance coverage, but all drivers should seriously consider getting more insurance than the law mandates. Whether you or the other driver are at fault, you want to be covered.

If you have been in an vehicle accident in WNC with an uninsured or underinsured driver, Fisher Stark P.A.  can help. Call us today for a free consultation to discuss your case and what your options may be.

We will work hard to get you the justice & fair compensation you deserve. Fisher Stark, P.A. is a highly respected personal injury law firm in Asheville, NC. We provide experienced legal help for clients in Buncombe County and all of Western North Carolina. Collectively, our legal team – Perry Fisher, and Brad Stark – have more than 40 years of trial practice, and have participated in more than 1,000 personal injury & accident cases. Call Fisher Stark, P.A. at 828-505-4300 for a free consultation.

Liability insurance provides coverage to people involved in a car accident who were not the cause of the collision. The liability insurance of the driver who caused the accident, known as the at-fault driver, should help to cover treatment for the injured parties that were not at-fault.

What Does Liability Insurance Cover?

Essentially, automobile insurance, or liability insurance, protects you from having to potentially pay out-of-pocket for another driver’s damages. In other words, liability insurance helps pay for damages that you cause. Therefore, this coverage will not cover or pay for your own injuries or property damage if you are the at-fault driver. This article will provide an overview of liability insurance in North Carolina.

Is liability coverage required and who does it cover?

North Carolina law requires that you carry liability insurance on all of your registered vehicles. Driving without this insurance can result in a hefty fine and/or suspension of your driver’s license. North Carolina requires all drivers to have insurance in order to ensure that drivers injured by the negligence of another will be able to seek some amount of compensation for their injuries and damages.

Liability insurance policies must cover both property damage and bodily injury. Liability insurance will cover those who are considered “insured drivers.” Essentially, this type of insurance covers the owner of the vehicle, family members, and any person using the vehicle with the owner’s permission. In other words, if a driver with permission is operating your vehicle and acts negligently, causing an accident, your liability insurance will likely cover the damages to the innocent driver (up to the policy limits).

Contact Wallace Pierce Law at (919) 887-7892 to schedule your free consultation today!

What are policy limits and are there any requirements in North Carolina?

Your liability insurance will only pay up to the policy limits. The policy limits are listed in your policy contract and essentially set the maximum amount of money that your insurance provider will pay out. Policy limits are generally separated into three categories also known as “split limits”: maximum bodily injury liability, aggregate or total bodily injury liability, and maximum property damage liability. North Carolina sets a liability minimum that all drivers must carry, known as $30,000/$60,000/$25,000. These are coded in order to represent the listed categories above. The diagram below provides a better illustration.

Maximum Bodily Injury

The maximum bodily injury insurance is the maximum amount that your policy will pay to any one individual injured in an accident. In North Carolina, drivers are required to have a minimum of $30,000 as their maximum bodily injury liability. In other words, the most one individual could recover from an at-fault driver with the minimum policy amount is $30,000.

For example, let’s assume that someone driving your vehicle that is covered under your liability insurance policy causes an accident. The other driver is injured and suffers $45,000 in medical bills. Here, the most the injured driver will be able to receive from your liability insurance will be the $30,000, leaving a $15,000 balance that either you or the injured will likely be responsible for.

Total Bodily Injury

The aggregate or total bodily injury liability is the amount of coverage available for all injured parties combined that were injured in the accident. In other words, payments for all bodily injuries cannot exceed the policy limit amount. In North Carolina, drivers are required to have a minimum of $60,000 as their total bodily injury liability. For further understanding, let’s look at the following hypothetical situation.

Let’s assume that you are driving your vehicle and cause an accident. The other driver and their passenger are both injured. The driver and passenger end up with $45,000 in medical treatment each ($90,000 total). Due to the policy limit being $60,000 total for bodily injury per accident, the insurance company will be responsible for up to $60,000. Therefore, there will be a $30,000 remaining balance that either you or the injured party will be liable for.

Maximum Property Damage

Lastly, the maximum property damage liability is the maximum amount an insurance provider will pay toward property damage. In other words, property damage liability insurance covers payment for damages to a third party’s property that is a result of an accident caused by you or another covered driver. In North Carolina, drivers are required to have a minimum of $25,000 in property damage liability insurance. With this being said, if you are in an accident with an at-fault driver who only carries the minimum limits required by law, you will only be able to recover up to $25,000 for damages to your vehicle or for any personal belongings damaged inside your vehicle. As you can imagine, this can be a real problem when your vehicle is worth much more than the minimum policy requirements. We will go into further detail on what to do in these types of circumstances.

If you need help with your car accident, contact Wallace Pierce Law at (919) 887-7892 to schedule your free consultation today!