In several states including North Carolina, the law requires you to have insurance in order to have a license, but the law does not specify how much coverage the insured must have. Not all states follow this law, in many other states; insurance is not required at all. This insurance law that differs from state to state can lead to drastic problems if an accident occurs involving drivers lacking insurance.
Imagine that a car ran a red light striking you and your vehicle. The accident itself caused severe damage including upwards of 70,000 dollars in medical bills. This is not including the cost to repair your car. The individual at fault has only 20,000 dollars maximum allotted in their policy agreement. This is obviously not enough; where does the rest of the money come from?
There are many options that individuals can take to protect them from being in this position. When choosing auto insurance, most companies offer underinsured, uninsured protection, or Med Pay. These policy options are very inexpensive and because they are so inexpensive, most insurance companies do not suggest it to their customers. When choosing insurance, ask if these options are a possibility. This allows you to file a claim showing that the faulty party neither has insurance or adequate insurance to cover the cost of the damages. This will allow your insurance company to use your policy to help pay the damages. Another tool at your disposal is the Med-pay policy. Electing to include this in your policy will allow you to have coverage for each of your passengers and yourself in the event the faulty party does not have coverage to pay the cost of medical.
Too many times we have seen clients suffer from sever injury or even the loss of a loved one because the person at fault had either no insurance or very limited insurance. It is never good to put your fate in the hands of other people. Look into options that will protect you and the ones you love.