Pros and Cons of Uninsured/Underinsured Motorist Coverage in North Carolina
Car accidents can be financially devastating, especially when the at-fault driver lacks insurance. Uninsured/Underinsured motorist (UM/UIM) coverage can help protect you from financial losses if you are involved in an accident with an uninsured/underinsured driver. UM/UIM coverage offers several advantages, but it also comes with some drawbacks.
What Is Uninsured/Underinsured Motorist Coverage in North Carolina?
Uninsured/Underinsured motorist coverage is a type of auto insurance that helps pay for medical expenses, lost wages, and other damages if you are hit by a driver who does not have insurance. In North Carolina, all auto insurance policies must include UM coverage at least equal to the state’s minimum liability requirements:
- $30,000 for bodily injury per person
- $60,000 for bodily injury per accident
- $25,000 for property damage
UIM is required for drivers who carry more than these minimum limits. These policies help ensure that responsible drivers are not left shouldering the financial burden of an accident caused by an uninsured or underinsured driver.
Pros of Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured motorist coverage has many benefits for drivers. These include:
- Protection against uninsured/underinsured drivers: One of the most significant benefits of UM/UIM coverage is financial security if you are involved in an accident with an uninsured or underinsured driver. You may have to pay for medical expenses and vehicle repairs out of pocket without this coverage.
- Covers hit-and-run accidents: Uninsured/Underinsured motorist coverage can help cover damages from hit-and-run accidents. UM/UIM coverage provides financial safety when the at-fault driver is unknown.
- No need for legal action against the at-fault driver: Your only recourse after an accident with an uninsured/underinsured driver may be to file a lawsuit against them. However, many drivers lack the financial resources to pay for the damages they cause. UM/UIM coverage could allow you to receive compensation directly from your insurer, eliminating the need for lengthy and costly litigation.
This additional protection can be invaluable when medical expenses and property damage exceed the at-fault driver’s policy limits or when they don’t have any insurance at all.
Cons of Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured motorist coverage comes with many benefits, but it also has some drawbacks. These include:
- Coverage limits may not be enough: North Carolina’s minimum coverage requirements might not be sufficient to cover severe injuries or extensive property damage. Your medical bills and lost wages could quickly exceed your policy limits if you are in a serious accident, leaving you with out-of-pocket expenses.
- The claims process can be complicated: Filing a claim under uninsured/underinsured motorist coverage can sometimes be challenging. Insurance companies may dispute claims, requiring you to provide substantial evidence that the at-fault driver was uninsured/underinsured.
Despite some drawbacks, UM/UIM motorist coverage is often a vital part of auto insurance in North Carolina. Drivers have no choice but to carry it since it is required by law, and purchasing additional UM/UIM coverage beyond the minimum can help keep you adequately protected.
Contact a Car Accident Lawyer for Legal Help
UM/UIM motorist coverage in North Carolina provides essential protection against uninsured, underinsured, and hit-and-run drivers. It helps to prevent you from bearing the financial burden of someone else’s negligence.
While there are some potential downsides, the benefits of financial security and peace of mind generally outweigh the cons. Consult a car accident lawyer for a free consultation if you or a loved one has been injured in a crash.
Contact The North Carolina Car Accident Lawyers At Elrod Pope Accident & Injury Attorneys For Help Today
For more information, please contact our car accident lawyers in South Carolina and North Carolina at Elrod Pope Accident & Injury Attorneys to schedule a free consultation today.
We proudly serve York County, Lancaster County, and its surrounding areas in South Carolina:
Elrod Pope Accident & Injury Attorneys Rock Hill
212 E Black St, Rock Hill, SC 29730
(803) 324-7574
Open 24hrs
Elrod Pope Accident & Injury Attorneys Lancaster
204 A S Main St, Lancaster, SC 29720
(803) 902-7065
Open 24hrs
Elrod Pope Accident & Injury Attorneys Fort Mill
1201 Carolina Pl Suite 102D, Fort Mill, SC 29708
(803) 902-4045
Open 24hrs
Elrod Pope Accident & Injury Attorneys Lake Wylie
264 Latitude Ln #102A, Lake Wylie, SC 29710
(803) 902-3608
Open 24hrs
We also proudly serve Mecklenburg County and its surrounding areas in North Carolina:
Elrod Pope Accident & Injury Attorneys Charlotte
1100 S Mint St #109, Charlotte, NC 28203
(980) 340-8620
Open 24hrs
