The facts about your minimum limit auto insurance depend on which state you live in. That’s because each state has different requirements about how much liability a driver should have. The minimum limit insurance North Carolina drivers must carry, for example, specific amounts for bodily injury liability, property damage liability, and uninsured motorist and underinsured motorist bodily injury coverage. These amounts are different from what the Florida state government requires.

The problem is that many people don’t fully understand what kind of coverage they have. In fact, some people are so foolish about the importance of carrying auto insurance that they’re driving without any liability insurance at all.

So here are some facts that you should know:

1.     Facts about Bodily Injury Liability

This type of coverage kicks in when you get involved in a car accident and your held responsible for the mess. This means you will be required to pay for the medical expenses of the people who were hurt by whatever you did.

If you took only the minimum coverage liability and you’re in North Carolina, this means that your insurance provider can cover up to $30,000 worth of medical expenses per person. What if it reaches $40,000? That injured person may then sue you to force you to pay for the remaining $10,000.

The minimum coverage amount total for each accident in North Carolina is just $60,000. So what if a lot of people got hurt and their total medical bills reach $100,000? It means that you’re personally liable for the rest of the $40,000.

Those injured people can go after your bank account and your house to force you to pay for their expenses. Here’s another fact you have to consider: a single person’s hospital bill can easily run up to $100,000 so you may be held liable for the rest of the $70,000! This is why you really should consider getting more than the minimum limit coverage.

2.     Facts about Property Damage Liability

This kicks in when you’re held liable for damage to other cars involved in the accident. In North Carolina, the minimum liability coverage for property damage is $25,000. That seems reasonable, right? The total damages for other cars shouldn’t exceed more than this amount. After all, in the state the most popular car is the Honda Accord.

But what if you’re involved in a multi-vehicular accident? Furthermore what if they’re all expensive SUVs? You do have lots of expensive trucks on the road here.

In addition, you also have to keep in mind that this particular coverage is for the other people’s cars. It doesn’t cover the cost of repairing your own vehicle. You’ll have to cover those expenses out of your own pocket if all you have is minimum limit coverage.

3.     Facts about Uninsured/Underinsured Motorist Bodily Injury

This is also required coverage for North Carolina, and it covers your own medical expenses (and your other passengers) if you’re hurt and it’s the other person’s fault. The problem is that they may be underinsured or even not insured at all, which means that their insurance company can’t pay for your medical expenses. When that’s the case, this particular coverage will kick in.

But again, if you only get the minimum coverage for yourself ($30,000 per person and $$60,000 total) then you’re likely to still not have enough coverage to pay for all your medical bills. Your bills can easily run into the hundreds of thousands of dollars, and you may have to pay for some of it yourself.

All these facts point to a singular truth—the minimum limits just won’t suffice. If you can afford to get greater coverage, then get it.