Motor Vehicle Insurance Reform
The bill aims to improve the financial security of individuals involved in motor vehicle accidents by ensuring that insurance policies provide sufficient coverage for damages. Increasing the required insurance limits could significantly impact consumers, as they may need to adjust their existing policies or costs. Additionally, the bill stipulates that insurance providers must offer underinsured and uninsured motorist coverage at levels that also exceed the basic liability requirements, thus enhancing the safety net for policyholders against individuals with insufficient insurance.
House Bill 402, titled 'Motor Vehicle Insurance Reform', introduces several changes to North Carolina's motor vehicle insurance and service of process laws. The primary focus of the bill is to adjust the limits of liability insurance coverage that motor vehicles must carry, with the aim of ensuring adequate protection for bodily injury and property damage in the event of an accident. Specifically, the bill proposes raising the minimum liability limits for bodily injury to $50,000 per person and $100,000 per accident, along with increasing property damage liability limits to $50,000 per accident.
Sentiments surrounding HB 402 appear to be generally supportive, especially among advocates for consumer protection and road safety. Proponents advocate that higher insurance limits will contribute to greater financial protection for victims of motor vehicle accidents. However, there are concerns from some sectors about the potential increase in insurance premiums that might result from raising coverage limits, which could burden drivers, particularly those with lower incomes.
Notable points of contention include the implications of increased insurance costs on low-income drivers who may struggle to meet higher financial requirements. Some stakeholders express concern that elevating these requirements might lead to higher rates of uninsured drivers if individuals cannot afford the new minimum premiums. Additionally, insurance companies might argue against imposing such requirements, citing challenges in ensuring market competitiveness and the risk of pushing customers towards non-compliance.