When it comes to auto insurance, most are aware of liability, which provides coverage for bodily injury and/or property damage from an accident involving an insured auto caused by a named insured, since it is required by law. We are thankful for this coverage when we caused the accident but rarely think about the limits that others carry when the accident is someone else’s fault. So what happens when others are uninsured or underinsured?
See more: Affects on Automobile Insurance Rates
In the personal auto policy, coverage C1 is uninsured motorists coverage and C2 is combined uninsured/underinsured motorists coverage. If you carry minimum liability limits required by the laws of North Carolina, you only have the option of uninsured motorists coverage, but if you carry higher limits, you would have both. These provide bodily injury protection for you under your own policy when you are involved in an auto accident with someone who does not have auto insurance or they don’t have high enough limits to cover your medical bills resulting from their negligence in causing the accident.
Under Covered on Auto Insurance
Property damage under both parts C1 and C2 only covers accidents involving uninsured motorists. It would have to be proven that the negligent party who caused the auto accident did not have an active personal auto policy at the time of the accident for you to file an uninsured motorists property damage claim under your own policy. In the situation where the negligent party’s liability property damage limit was too low to cover the property damage to your vehicle, a collision claim would need to be filed under your personal auto policy, meaning you chose to carry this optional coverage on your policy.
See more: Why It’s Important to Read Your Insurance Policy Before You Have to File a Claim
What about a hit-and-run situation where you have no way of locating the negligent driver or vehicle that causes the accident that damages your vehicle? Unfortunately, claims resulting from these types of accidents would have to be filed under the collision part of your auto policy. Again, there would only be coverage available if you chose this optional coverage for your own policy.
As this was only a brief discussion of uninsured/underinsured motorists coverage, you might have questions. That is why there is an advantage to having a personal insurance agent. Call or visit your local Farm Bureau office to find individuals ready to review your insurance, answer any questions and help make sure you have the protection you need.
Visit ncfbins.com/our-locations to find your local office.
