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North Carolina limo passengers may not be covered in collision

A person’s first prom is an exciting time in life. After dates and clothing are arranged, many students decide to travel with their friends to the prom in a limousine. Unfortunately, some people warn that a collision which occurs while riding in a limousine may have significant financial ramifications if that vehicle is not covered by an adequate insurance policy. Those in the limousine business warn that this may be the case, as the state of North Carolina may not always adequately regulate the industry.

The Federal Motor Carrier Safety Administration recently filed a complaint alleging several companies were violating insurance regulations in North Carolina. The president of the North Carolina Limousine Association noted that this is a very real concern. She suggests that customers wishing to hire such a business should ask for proof of insurance as well as the date the policy went into effect.

State law requires companies that operate vehicles with 15 or fewer passengers have an insurance policy in the amount of $1.5 million. The policy is required to be $5 million if a vehicle carries more than 15 people. Unfortunately, some companies choose not to do so in order to cut costs. This could have serious consequences for the passengers in the vehicle as they may not be covered in the event of an accident.

Anyone who has ever been in a serious collision knows the risks, as well as the expense. Unfortunately, a night of fun could quickly turn into a lifetime of debt caused by medical bills not covered by the company's insurance. There are options available to people in a situation such as this. Many people in North Carolina have found it beneficial to seek assistance from those where are knowledgeable about accidents caused by an uninsured driver. In many instances, they were able to cover expenses, including medical bills, stemming from the accident.

Source: wect.com, "Uninsured limos cause for concern during prom season", Alex Giles, May 15, 2014

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