When Auto Insurance Isn’t Enough

The scariest thing I learned when I started practicing personal injury law was that the VAST majority of drivers in North Carolina carry the minimum liability limits required by law, which is $30,000.

If you don’t understand why that’s scary, let me explain: Let’s say some negligent driver with minimum limits runs you over due to no fault of your own, solely their negligence. You’re taken to the ER by EMS, have emergency surgery, medical expenses over $100,000 and some degree of permanent disability. The MOST you’ll ever likely see from the at-fault driver is $30,000.

That’s it. $30,000.

Why is that? Well, there are several reasons…

First, the NC legislature has seen fit to establish this as the minimum amount. This has been the case for decades and you can thank your insurance whore Republican legislators for keeping that there to your detriment.

Second, a liability policy is only as good as it’s limit. Theoretically, under the facts listed above, you could seek what’s called an “excess judgment” against the driver, meaning you could get the $30k, but try to get a judgment over that and collect that amount from the driver’s personal assets. But it’s extremely unlikely that the type of person who would have sufficient assets to make such an execution worthwhile is precisely not the type of person who would only have $30,000 in coverage. Which means you’re stuck with the $30k and maybe the dude’s television. Huzzah.

Third – and this is the bit that you CAN affect – most people don’t carry sufficient Underinsured Motorist (UIM) coverage. That’s right, it’s backwards, I know, but it’s extremely wise for YOU to insure yourself against the potential negligence of poor people. Let’s say you happened to have wisely purchased Underinsured Motorist coverage in the amount of $100,000. Under the facts above, you should be able to get the $30,000 from the bad guys, and then go to your carrier for up to $70,000 (for the total of your $100k limits).

What’s the moral of the story? Well, there are three.

1. Vote Democrat. Republicans have been in the pockets of the insurance companies for decades, and will continue to be so indefinitely. If you have any self-interest whatsoever and aren’t a significant shareholder in an insurance company, you have no reason whatsoever to vote for a Republican.
2. Buy as much UIM coverage as you can. It’s dirt cheap. We’re talking several dollars a year, nothing drastic. And it could mean the difference between solvency and bankruptcy in a bad situation. Call your agent now.
3. If you’re in an accident, do yourself a favor and call me right away. Don’t mess around. 919-929-2992.