Automobile insurance limits and premiums can be very confusing for a lot of people, especially those who think they are fully protected when they buy just the minimum amount of liability coverage. According to Philip Baddour at Parker & Hine, PC, the minimum limits for liability insurance are unlikely to cover the damage in any type of serious medical case.
A car accident lawyer in Goldsboro, North Carolina, Baddour explains that the typical driver in his state carries liability insurance and nothing else. In North Carolina, as in many other states, the minimum amount of liability insurance that a person can have to legally drive a vehicle is $30,000, says Baddour. Therefore, most of the people driving around could theoretically only cover $30,000 in expenses if they were to injure another driver in an accident, even though the true cost of medical expenses could be much higher.
In cases where a fully insured driver gets hit by a motorist with only the minimum coverage limits, it would fall upon that driver and his attorney to try to recoup the costs of medical bills and vehicular damage. The problem for any lawyer who handles car accident claims in Goldsboro, however, is that most of the drivers with minimum coverage limits do not have any personal assets or property to sue for.
There is something that people can do to protect themselves in these types of situations, and that is to invest in underinsured motorist coverage. Underinsured motorist insurance is an inexpensive way for an individual to protect himself in the event that he gets hurt through the negligence of another person, and that person does not have enough liability insurance to cover the costs, says Baddour.
Baddour gives the example of a person who suffered extensive injuries in an automobile accident that was not his fault. If this person’s ankle was crushed and he was rendered unable to work, either temporarily or permanently, then he would be eligible to receive compensation for those financial losses, along with the medical bills and auto repair expenses.
If the liable party only had the minimum level of insurance in North Carolina, however, then the most this injured person would be able to recoup would be $30,000. Medical bills alone could quickly swell to upwards of $100,000 for some cases, which means that the person would be looking to his own insurance company to recover the $70,000 balance. If his own company refused to pay the remainder, then he would be on the hook for paying back whatever was left of the bills.
Of course, the injured party could try suing the at-fault driver, but Baddour says it is unlikely that a driver who only has minimum levels of auto insurance would have much in the way of individual assets to collect upon. Although a person who is in an auto accident with a millionaire would be able to sue and would not need underinsured motorist coverage, that situation is not likely to happen, according to Baddour. What is more likely is that the at-fault driver would have little in the way of liquid assets, with a home or car that is jointly owned with his wife and therefore untouchable in this type of lawsuit.
If the injured person had underinsured motorist coverage, however, then he could have all of his bills covered without having to worry about lengthy court battles or legal fees. Drivers who purchase underinsured motorist insurance can receive up to $1 million of coverage very inexpensively, according to Baddour, which is one of the reasons why underinsured motorist coverage is so important for people to buy.
The reason more people don’t have underinsured motorist coverage is because they simply do not know what it is or why it is necessary, according to Baddour. In today’s economy, however, more people are choosing to forego expensive insurance plans and stick to the basics. This is another reason in particular why it is even more important than ever before to buy underinsured motorist coverage.
In Goldsboro, North Carolina, anyone who is in a car accident should call a lawyer as soon as possible. In addition to recommending that people carry more than the minimum insurance to protect their own assets, Baddour says that people should get in touch with an attorney to find out what their options are if they are involved in an auto accident.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
