Uninsured and Underinsured Motorists Coverage in North Carolina

What Is Uninsured Motorist (UM) Coverage?

In North Carolina, a driver who causes a collision is financially responsible for its consequences. That means they must pay for the victims’ accident-related injuries and losses.

These costs should be covered by the liability insurance the state requires every driver to carry. At least, that’s the idea. In practice, almost 12 percent of North Carolina drivers do not carry this insurance, according to the Insurance Information Institute (III). Theoretically, you should be able to go after the uninsured driver’s personal assets, but the reality is that the vast majority of uninsured drivers are “judgment-proof”, meaning that even if you get a large verdict against them, there will not be assets available to satisfy the judgment. As the saying goes, “You can’t get blood from a rock.”

Uninsured motorist (UM) coverage is designed to fill in the gaps created by these drivers. If an uninsured driver hits you, you can file a claim against your UM policy to cover the following, up to your specific policy limits:

North Carolina uninsured motorist coverage may also pay for hit-and-run accidents when there is actual physical contact between your vehicle and the fleeing vehicle.

What Is Underinsured Motorist (UIM) Coverage?

Underinsured motorist (UIM) coverage activates when the person who hit you has insurance, but not enough to cover the full cost of what you’ve suffered. Auto liability insurance policies issued in North Carolina on or after July 1, 2025, must cover at least:

$50,000 for bodily injury liability per person
$100,000 for bodily injury liability per accident
$50,000 for property damage liability per accident

Car accidents can cause significant losses, and these minimum limits might not be enough coverage for the full cost of a collision – particularly when multiple injury victims are seeking coverage from the same liability policy. When that happens, UIM makes up the difference between your UIM policy limits and the at-fault driver’s liability limits.

For example, if we hypothetically assume that your case is worth $150,000, and the other driver only has $50,000 in their liability policy for bodily injury, they are underinsured by $50,000. If your car insurance has underinsured coverage of $100,000, then under the new law, you would get $50,000 from the other driver’s liability insurance plus $100,000 from your UIM insurance to receive a total of $150,000.

Is UM/UIM Coverage Required in North Carolina?

Both UM and UIM insurance coverage are required in North Carolina (N.C.G.S. § 20 ‑279.21). That means that as long as you’ve purchased auto insurance, you get the benefit of these important safety nets. The higher the limits of the insurance you buy, the better your situation will be if the worst happens to you.

How UM/UIM Claims Work in North Carolina

UM and UIM claims work similarly to liability claims in North Carolina, but with your own insurer rather than the at-fault drivers. However, just because you’re going through your own insurance company doesn’t mean they won’t try to minimize their payout.

Here are the practical steps you can take after an accident with an uninsured driver to protect your claim:

Contact an experienced lawyer for UM/UIM claims. Your attorney can work from the beginning to lay the foundation for getting you fully compensated for your injuries. They will negotiate with your insurer for a fair settlement that pays the full amount you’re owed. While they do that, you can focus on healing from your injuries.
Report the accident to your insurance provider. Make sure your lawyer is on the line with you when you give any statement regarding how the accident happened or what your injuries are.
Get medical treatment if you have not already. Tell your physician that you were in a car accident. Follow their instructions and attend all follow-up appointments. Each time you see your doctors, tell them about all of the injuries that are still bothering you.
Start gathering supporting evidence. This might include photos or videos of the accident scene, the names of anyone who saw the accident happen, and copies of your medical records. You should also write down what you remember about the crash while your memory is fresh.
One important difference between liability insurance and UM/UIM is that with UM/UIM you have the option of asking for the case to be decided in arbitration instead of a jury trial. Your lawyer can explain to you which option is better in your individual case.

What Other Legal Options Do You Have?

In addition to filing a claim against your UM or UIM insurance policy, you might have other legal options available to you, such as:

Filing claims against other policy provisions – If your policy has optional add-ons like medical payments or collision coverage, these provisions can sometimes further offset the cost of the crash.
Filing a lawsuit against the at-fault driver – The at-fault driver is responsible for any financial consequences of the accident not covered by their insurer. However, people who don’t carry insurance or have minimal coverage tend to have few resources to collect. Your attorney can explain whether a personal injury lawsuit is worth pursuing.
Identifying other at-fault parties – Depending on the circumstances, people other than the uninsured or underinsured driver might also be at fault for the accident. Examples include a manufacturer that made a defective vehicle part or a government entity that failed to maintain the roadway.

Our experienced attorneys can review the crash and your insurance policies to identify any other potential sources of compensation.

How Our North Carolina UM/UIM Lawyers Can Help

Don’t try to pursue a UM or UIM claim on your own. Instead, get help from the team at Younce, Vtipil, Baznik & Banks.

Our experienced car accident attorneys can:

Investigate the accident to determine all potentially liable parties
Search for other liability policies, such as the cars of family members with whom the defendant driver lives
Review your insurance policy to determine which coverages you have available
Work with medical professionals and financial experts to understand the full cost of your injuries
Build a case establishing the other driver’s fault and the extent of your losses
File your UM or UIM claim with your insurer and negotiate for a fair settlement
Pursue other claims you may have to maximize your compensation

Contact Our UM/UIM Accident Lawyers Today

Have you been injured in an accident caused by a driver who either didn’t have insurance or didn’t carry enough to cover your expenses? If so, reach out to Younce, Vtipil, Baznik & Banks today.

Our UM/UIM accident attorneys have over 100 years of combined experience helping victims seek fair compensation, resulting in more than $150 million recovered for injured North Carolinians to date.* Here’s what one of our satisfied clients had to say about their experience with us:

“Very professional. They articulate things in a way you’ll understand, and show empathy and compassion for your situation.” – Russell

Don’t wait another moment to get the help you deserve. Call Younce, Vtipil, Baznik & Banks at 919-661-9000, and let’s discuss your case during a free consultation.

*Each case is unique, and past results do not guarantee future outcomes.

Uninsured and Underinsured Motorist Coverage in North Carolina

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