Liability, Property and Medical Coverage
Auto insurance provides liability, property, and medical coverage:
- Bodily Injury Liability pays for damages to other people as a result of an accident caused by you or another driver.
- Property Damage Liability pays for damages to other people's property as a result of an accident caused by you or another covered driver.
- Collision property coverage pays for damage to your covered automobile.
- Comprehensive property coverage pays for damage to your covered automobile caused by a variety of hazards including but not limited to: falling objects, fire, theft, hail, flood, contact with animal, etc. It also covers breakage of glass.
- Medical payment coverage pays for necessary and reasonable medical and funeral expenses.
- Uninsured/Underinsured Motorist Coverage pays for bodily injury and property damage for which another driver becomes legally liable. UM/UIM coverage limits must at least equal the highest bodily injury limit on any vehicle insured under the policy.
North Carolina Requirements
All licensed drivers must maintain minimum levels of automobile liability coverage.
- $30,000 Bodily injury for each person
- $60,000 total Bodily Injury for all persons in an accident
- $25,000 Property Damage
- Uninsured/Underinsured (UM/UIM) motorist coverage - required on all policies sold or renewed after January 1, 2009. UM/UIM coverage limits must at least equal the highest bodily injury limit on any motor vehicle insured under the policy.
It is highly recommended that you take limits that are higher than the state minimum.
With the vast majority of new cars costing at least $17,500, if you were to damage two vehicles other than your own in a collision, there is a very good possibility that your policy, if written with the minimum state limits, would not cover the entire cost to repair or replace those vehicles.
In addition, with the rising cost of healthcare in the US, it is very easy for a small accident to accrue costs of $50,000 or higher, per person. A policy with the minimum limits would again be putting you at risk for not having enough coverage to pay for the other drivers' medical needs.
At L Squared Insurance Agency, we recommend to all of our clients that they take a higher set of minimum limits. We recommend the following:
- $100,000 Bodily injury for each person
- $300,000 Bodily Injury for all persons in an accident
- $50,000 Property Damage
- Mirrored Limits for UM/UIM
Many Umbrella policies will require these limits, or higher, on your underlying automobile policy. Having these limits already in place will allow you to also obtain an Umbrella policy in addition that these limits are simply not enough. For more information about Umbrella policies, and the options that are available through L Squared Insurance Agency, please visit the Umbrella page.