What if the at-fault driver didn’t have
insurance?
OR
What if there were several people injured in the accident and my injuries
alone exceed the at fault driver’s policy limit? If all of the injured parties
must split the policy limit ($60,000 in the example above), I won’t even get
enough money to pay for my medical bills.
Answer: Your attorney will look to
your insurance policy for any additional applicable coverages (examples: see
below).
My insurance:
Uninsured/Underinsured Motorists (UM/UIM)
Coverage
Uninsured (UM) Coverage - provides protection when an uninsured driver,
who is at fault, injures you or another covered individual. It also provides
property damage coverage.
Underinsured (UIM) Coverage - provides
protection when an underinsured driver, who is at fault, injures you or another
covered individual and does not have enough coverage to cover the losses of the
injured parties.
Medpay Coverage
- Pays for reasonable and necessary medical
and funeral expenses due to an automobile accident
- Covers you or any family member while
occupying any automobile, or as a pedestrian when struck by a motor vehicle
- Also covers any other person while
occupying your covered automobile or any vehicle driven by you or a family
member
- Pays up to the limits listed on your
policy for each individual injured
- Does not provide coverage if the injuries
occur while occupying a motorized vehicle with less than four wheels
Cancellation
There are certain reasons your company may
cancel your coverage:
- Non payment of premium
- You are no longer a resident of North
Carolina and are not eligible for a policy through the reinsurance facility
- The insurance company terminates its
contract with your insured agent
- Your premium finance company cancels the
policy according to the finance contract
- If you knowingly make a material
misrepresentation of the years of driving experience or of the driving
record of you or any other driver who lives with you and uses your covered
automobile
Can my company refuse to renew my policy
because of claims that were not my fault?
Answer: Many companies will use the
frequency of claims, taking into account at-fault as well as fault-free
claims, as one of their criteria.
Does an insurance company have to tell me
why it cancelled my policy?
Answer: Yes, a company must give the
reason(s) why your policy was cancelled and the date termination is
effective.
My attorney is asking for information on my
insurance policy but I don’t want to file a claim against my company because
they might raise my rates or refuse to renew my policy. Any advice?
Answer: An insurance company cannot
charge insurance points for an accident that was not your fault.
Property Damage to your
Automobile
If your car can be repaired:
The insurance company is responsible for the
cost to repair your vehicle. This does not necessarily mean the estimated amount
by a repair facility you choose. If the company can have the same repairs
completed at a lower cost from another shop, you may be required to pay the
difference.
No insurance company can require the use of
after-market parts in the repair of your vehicle unless the part is equal to the
original part in terms of fit, quality, performance and warranty. You can choose
not to have after-market parts placed on your car but you may be responsible for
any additional cost.
The insurance company may deduct for
depreciation when they allow for an entire paint job or when such items as tires
and batteries are replaced. Depreciation is the decrease in value of the vehicle
or part because of age or wear and tear.
If your car must be totaled:
If the damage to your vehicle is equal to or
exceeds the total cost of repair or if the damage exceeds 75% of the
pre-accident actual cash value (ACV), the insurer must consider your vehicle a
total loss. When your car is totaled, the insurance company is responsible for
its ACV. ACV represents the local market value of your totaled vehicle.
There are two methods to determine ACV/local
market value:
- By using the local market price of a
comparable vehicle; or
- If no comparable vehicle can be located,
dollar estimates from at least two qualified dealers within the local market
area are normally used
If I am in an accident and am not at fault,
do I get a rental car while mine is being fixed?
Answer: It is common practice for
insurance companies to allow a rental vehicle while your car is being
repaired. However, they are not required by law to do so.
The insurance company wants to total my car
but I want to fix it. What can I do?
Answer: You have the right to keep
the salvaged vehicle but if you do, the insurance company will deduct the
salvage value from the ACV.
How long can a company take to pay my claim?
Answer: After receiving a claim, an
insurance company has 30 days to pay the claim, make an offer, deny the
claim or advise that they’re investigating the claim.
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