As consumers, we tend not to think much about our car insurance, except for what it costs us each month. But paying close attention to the medical coverage portion of your policy could save you from financial ruin, according to a North Carolina attorney.
"Your life can be devastated if you have no way to pay your bills or living expenses when you're out of work for a year after a car wreck," said Ken Hardison, a Raleigh attorney who has represented hundreds of clients who have been injured in auto accidents.
He says spending a little extra each month, bumping up "underinsured motorist coverage," also known as UIM, can shield policy holders from unexpected expenses. Those benefits can cost just a few dollars a month, Hardison says, while providing up to $1 million in coverage.
"UIM benefits allow you to tap into our own auto policy when another motorist who is at fault does not have enough insurance to pay for all of your damages," Hardison said.
He says three of every four wrecks are covered by adequate insurance. It's the fourth case that can spell financial disaster. Most drivers don't realize their coverage is not enough until they're stuck with thousands of dollars in medical bills and other expenses, he said.
