By Jim McCafferty

Any insured driver fears being hit by an uninsured driver who cannot pay for the damages.

Insured drivers, however, should also be concerned with another worry - is their insurance coverage adequate if they are found at fault in an accident?

With more than 230,000 accidents in North Carolina and more than 100,000 in South Carolina annually, even the safest driver makes a mistake sometimes.
And the nasty hidden secret is that the insured driver without adequate coverage could face disastrous financial consequences, if found at fault.  Bank savings, home equity, personal assets, 401(k) savings and 38 percent of their salary for life can all be attached by the court to satisfy a damage claim.

For example, many motorists may opt to purchase $100,000 worth of Bodily Injury coverage, since it is sometimes three times the minimum amount required by the state.

But in an accident in which a software engineer lost use of his right arm, was permanently impaired and subsequently awarded a $1 million judgment in damages, the $100,000 coverage leaves $900,000 to be paid.

The insured driver lost her $50,000 in bank savings, her $100,000 in her 401(k), the $60,000 equity in her house whenever the house is sold (the driver can keep his house but loses the equity), $80,000 in personal assets and then is faced with a maximum 38 percent garnishee of salary until the amount is paid or she retires. 

Many insured motorists try to cut corners and buy more than the minimum required by the state but less than what they need to cover their assets.
The sad part of this story is that for only $62 a year, this member could have increased her automobile insurance coverage to $250,000. 

For an additional $192 a year she could have had protection up to $1 million with an umbrella policy. 

In total, she would have had $1,250,000 in coverage for an extra $254 a year - only 70 cents a day. There is a good chance she could have raised her comprehensive and collision deductibles to offset most of the increase in premium. 

Sometimes an extra few cents a day can save thousands of dollars later.
As AAA insurance advisors, we pride ourselves in obtaining competitive rates for our members and the opportunity to give you professional advice to protect yourself and your assets.