1. Using Insurance to Protect Yourself in Auto Accidents
You are in a serious car accident and have been injured. The other driver ran a
red light and broad sided your car. An unfortunate incident that is all too
common in today’s modern society. But the reality is that many people will be
involved in a car accident resulting in an injury of some type, either to
themselves, the other driver (or passenger) or to their passenger.
Since most of us at some point in our lives will be involved in an accident that
causes injury, it makes sense to protect yourself to the fullest extent possible.
One of the easiest and cost effective ways to do this is by the wise and proper
use of insurance. .
The first thing you must understand about insurance in the automobile accident
context is a concept of “no-fault”. In North Dakota, you are required to carry “no-
fault” insurance on your car (also called “personal injury protection”) in the
minimum amount of $30,000. You may carry more if you wish. If you have an
accident and suffer a “serious injury”, a term defined by law, you are entitled to
have your medical bills and a portion of your wages paid up to the limit of your
coverage without regard to your fault in causing the accident. Since the cost of
medical care is on the rise, it does not take long for the minimum amount of
coverage to be exhausted through doctor visits or hospitalizations.
If you were at fault in causing an accident, the injured party has the right to
recover damages from you. This typically includes medical bills and money for
pain and suffering. By law, you are required to carry “liability” insurance which
will pay the injured party’s damages. If you do not carry liability insurance, not
only are you breaking the law, you are exposing yourself and your personal
assets. We recommend to our clients that they carry liability insurance of at
least $100,000 per person and $300,000 per accident. Depending upon your
personal situation and wealth, more coverage may be advisable.
If you are involved in an accident with a person who, despite the law, carries no
liability insurance to compensate you for your injuries, than you must look to your
own policy of “uninsured” (UM) insurance. UM insurance compensates you
when you suffer injuries and the responsible party has no insurance. Since UM
insurance is for your benefit it is crucial for you to carry it the proper amount of
coverage. Again, the minimum you should carry is $100,000 per person and
$300,000 per accident.
A similar type of insurance coverage is “underinsured” (UIM) coverage. UIM
coverage is important when you are injured to an extent that is beyond the
responsible party’s liability coverage. Since UIM coverage is for your benefit in
case you are injured, you should give serious consideration to carrying an
amount to compensate you adequately. Coverage in the amount of $100,000
per person and $300,000 per accident is the minimum you should consider. An

2. even greater amount will insure that you will be fully protected in case you were
injured and the responsible party does not have adequate insurance.
It really makes good sense to protect yourself through the wise use of insurance.
If you are injured in a car accident consult your attorney to determine your rights
under your policy and the responsible party’s policy.