Car Accident Insurance Up For Debate in NC
Posted by
Christina MedlinMay 11, 2007 8:57 AMThe NC General Assembly is currently debating a bill that would significantly increase the insurance coverage of NC drivers. H 1601, currently debated in the NC General Assembly, is an act to require uninsured and underinsured motorist coverage and to increase the limits for uninsured and underinsured motorist coverage.
There are 3 types of coverage that a NC driver should have under a NC policy: liability insurance, uninsured motorist coverage (UM), and underinsured motorist coverage (UIM). The Motor Vehicle Safety-Responsibility Act of 1953 (G.S. § 20-279) mandates the coverage of a personal auto policy in NC. Motor vehicle liability mandates are written into every vehicle liability policy as a matter of law. Currently every policy is mandated to have $30,000 in coverage for bodily injury or death to one person in any one accident, $60,000 in coverage of bodily injury or death of two or more persons and $25,000 in coverage for property damage of others in any one accident.
Under H 1601, the mandated coverage would increase to $75,000 for bodily injury or death of one person, $150,000 for bodily injury or death of two or more persons and $50,000 for property damage of others.
Under NC law any vehicle insurance policy is required to provide uninsured coverage unless the insured rejects the coverage. Each policy holder must have $30,000 in coverage because of bodily injury to or death of one person, $60,000 for bodily injury or death of two or more persons in any one accident and $25,000 for property damage. H 1601 would increase those limits to $75,000, $150,000 and $50,000 respectively.
Underinsured motorist coverage applies in a situation where the defendant does have liability insurance, but the amount is insufficient to pay the full value of a person's claim. NC law requires $30,000 coverage for bodily injury to or death of one person in any one accident, $60,000 coverage for bodily injury to or death of two or more people in any one accident and $25,000 in coverage for property damage. H 1601 would also increase underinsured limits to $75,000, $150,000 and $50,000 respectively.
Keep track of bill developments.