Personal Injury Myths

Myth #1

If I have insurance I do not have anything to worry about if I cause an automobile accident.

TRUTH
When you cause an automobile accident your insurance company is only obligated to pay a certain amount on your behalf. That amount is called the policy limit.  In North Carolina the minimum policy limit is $30,000 and therefore, that is the amount of coverage most people have. Unfortunately, many automobile accidents result in damages far exceeding $30,000. If you are the cause of an accident resulting in damages that exceed your policy limit, you may be personally responsible for paying for those damages. That means the injured party can put a lien on your house and even garnish your wages in some cases.

Call your insurance company today and ensure that you have enough coverage to protect yourself in the event you cause an accident!

Myth #2

If I get into an automobile accident, the other guy’s insurance will pay for all of my medical bills and lost wages.

TRUTH
Just like your insurance is limited by a policy limit (see Myth #1) so is the other guy’s. Therefore, if the at- fault driver only has a $30,000 policy limit and you have $50,000 in medical bills there is a shortage in coverage. If the at-fault driver has a house or other assets you can pursue, the shortage in coverage won’t be devastating.

However, if the other driver doesn’t have any assets you will be left taking care of all the bills his insurance company didn’t pay. The good news is there is a type of insurance that can help in these situations. UM/UIM coverage can be purchased cheaply by anyone with an automobile insurance policy. UM stands for uninsured motorist and UIM stands for underinsured motorist. UM/UIM coverage provides you with funds when the at-fault driver does not have coverage or does not have enough coverage to pay for all of your damages. This coverage is relatively inexpensive and extremely important in the event you are injured in an accident.

It is important to note your UM/UIM coverage provider gets credit for the insurance carried by the at-fault driver. For example, if you have $50,000 in UM/UIM coverage and a driver with NO insurance hits you – you can collect the full $50,000 if it is needed to cover your damages. However, if you are hit by someone with $30,000 in insurance - you can only collect $20,000 from your UM/UIM carrier. Further, please keep in mind that UM/UIM coverage is only available once you have received all of the funds available from the at-fault driver’s insurance. In order to ensure that you are protected in the event you are injured by a negligent driver, take matters into your own hands. Do not depend on the negligent driver to carry enough insurance to ensure you are well taken care of. Call your agent about UM/UIM coverage today!

Myth #3

If I provide my child with a vehicle and make sure he has an insurance policy, I am not responsible for damages if he causes an automobile accident.

TRUTH
Under North Carolina law, parents can be held responsible for the negligent driving actions of their children. If a child lives at home and parents provide the child with a vehicle for general use, then the parents can be held responsible for damages caused in an accident. Further, thinking of myth #1, if there is not enough insurance coverage to pay for all of the damages, the injured party can seek recovery from the parents’ assets. Keep in mind that a child may still be considered “living at home” even if he is in college if his home address is still considered his permanent address. In order to protect yourself from an injured party pursuing what you’ve worked for, ensure that you have significant insurance policies on all household drivers, especially young or less experienced drivers.

Myth #4

If an insurance adjuster asks me for a verbal or written statement I should cooperate because they will pay me faster.

TRUTH
You should NOT give any statement to an insurance adjuster before speaking with an attorney. While it seems like the adjuster is trying to be helpful and resolve the claim quickly, the truth is, the adjuster wants to pay you the least amount possible for your injuries.

Once your statement is recorded, the adjuster can use that statement to twist your words out of context. Further, you might not realize what the adjuster is looking for and you may fail to mention something important.We deal with adjusters every single day. We know what is on their mind and what it takes to get a claim settled for a fair amount. Of course the adjuster wants to resolve your claim quickly; they do not want you to have time to call a lawyer who knows how to fight for a fair settlement. Please, speak with an attorney before you give any sort of statement to an adjuster.

If you have any questions about these issues, or any other concerns, please feel free to contact our office at 1-800-849-5291 or use this convenient form.