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Thursday, January 01, 2009 9:32 AM New law protects motorists By Matt Shaw | Times Staff Writer The roads aren't any safer this morning, but a new state law should help protect motorists from the financial ruin that can result from a crash. Effective today, North Carolina no longer allows auto owners to waive uninsured and underinsured motorist coverage on their insurance policies. About 5 percent of the drivers who operate the state's roughly 7 million private passenger vehicles currently don't have the coverage. They will have to pay another $17 per year in premiums, on average, for the minimum coverage required by the law, according to Kristin Milam with the N.C. Department of Insurance. Local insurance agents say they welcome the new law. "It's a good thing it's happening," said Jana Lake, a State Farm agent whose office is on Airport Boulevard. Many people who have waived the policies have been unaware of how much they're at risk of being involved in an accident with someone with no insurance, she said Wednesday. "I can't tell you what the percentage is (of uninsured drivers), but it's up there," she said. Making the coverage mandatory protects policyholders, plus it eliminates some paperwork that must be filed when that coverage has been declined in the past she said. The difference in cost for most insurance "will be very small, not even 1 percent for most drivers," she said. "Typically, all of the people that I write policies for already have the coverage," said Nora Lucas of Taylor-Grady Insurance Agency on Raleigh Road. In the past, if someone considered declining the coverage, Lucas has explained "that this coverage protects you when the other person doesn't have coverage ... It's crazy not to. Plus, it's really not much more money." Lucas believes the down economy may increase the numbers of uninsured drivers on the road. "I think a lot of people are allowing their insurance to lapse. I'm not condoning it, but I know if it's a choice between paying your insurance or paying your rent, most people would pay their rent," she said Wednesday. Motorists who lack the coverage now do not need to add it immediately. State law allows them to obtain coverage the next time their policies are renewed. mshaw@wilsontimes.com | 265-7878 |
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