What You Need to Know About Uninsured and Underinsured Motorist Coverage in North Carolina

North Carolina requires uninsured motorist (UM) coverage as part of all auto insurance policies issued in the state. Underinsured motorist (UIM) coverage, while not mandatory, is an optional add-on that covers you if you’re in an accident with a driver whose insurance limits are less than your losses.

When you’re involved in a car accident in North Carolina, you expect the at-fault driver to have adequate insurance coverage to compensate you for your injuries and related losses. But what happens if the other driver is uninsured or doesn’t have enough coverage to fully pay for your losses? That is where uninsured motorist and underinsured motorist coverage come into play.

Understanding the differences between these two types of coverage and how they work in North Carolina is essential for protecting yourself and your loved ones on the road. This article explains the key aspects of UM and UIM coverage and how they can impact your car accident claim.

To find out more about how UM/UIM coverage could apply to your specific situation, contact The Law Offices of John Drew Warlick, P.A., now for a free consultation.

What Are the Car Insurance Requirements in North Carolina?

North Carolina law requires all vehicles registered in the state to carry a minimum amount of liability insurance to pay for damages the driver may cause to others in an accident. The minimum limits for a car insurance policy are:

• $30,000 per person for bodily injury
• $60,000 per accident for bodily injury
• $25,000 per accident for property damage

In addition to these liability limits, North Carolina requires drivers to have an uninsured motorist policy with the same minimum limits. That means that if you are in an accident involving an uninsured driver, your own insurance company will step in to cover your losses up to your policy limits.

While underinsured motorist coverage is not mandatory in North Carolina, underinsured motorist policies are a wise investment to protect yourself in case you are in an accident with a driver who has insufficient insurance to cover your losses.

How Many Drivers in North Carolina Are Uninsured?

Approximately 10.3 percent of drivers in North Carolina are uninsured, according to recent estimates from the Insurance Information Institute. That means tens of thousands of uninsured drivers are on the state’s roads at any given time.

Even if you’re a safe and responsible driver, you can’t control the actions of others on the road. Having UM and UIM coverage can provide peace of mind and financial protection in case you’re injured in an accident with an uninsured or underinsured driver.

Who Is Covered Under a North Carolina UM/UIM Policy?

Your North Carolina UM/UIM policy typically covers the following:

• You, as the named insured
• Your spouse, if they live in your household
• Family members who live in your household
• Passengers in your vehicle at the time of the accident
• Anyone driving your car with your permission

It’s important to note that UM/UIM coverage follows the insured person, not the vehicle. That means if you’re injured in an accident while riding in someone else’s car or as a pedestrian, your UM/UIM coverage may still apply.

Do You Use Your Uninsured Motorist Coverage After a Hit-and-Run Accident?

Yes, if you’re involved in a hit-and-run collision in North Carolina, your uninsured motorist coverage can help pay for your losses. In such a situation, your insurance company essentially steps into the role of the at-fault driver’s insurer since the responsible party cannot be identified or located.

To use your uninsured motorist coverage for a hit-and-run accident, you’ll need to report the incident to the police and your insurance company promptly. You may also need to provide evidence that the other driver was at fault and that you made reasonable efforts to identify them.

How Much Will Your UM/UIM Coverage Cover for a Car Crash?

The amount your UM/UIM coverage will pay for an accident depends on your policy limits and the specific circumstances of your case. In North Carolina, your UM coverage limits will match your liability limits, while your UIM limits are selected separately.

For example, if you have liability limits of $50,000 per person and $100,000 per accident, your UM coverage will also have those limits.

With UIM coverage, your policy limits kick in after the at-fault driver’s liability limits have been exhausted. If your losses exceed the other driver’s limits, your UIM coverage can help bridge the gap up to your chosen limits.

It’s always a good idea to review your UM/UIM coverage limits with your insurance agent or a knowledgeable North Carolina car accident attorney to ensure you have adequate protection for your needs.

When you need to make a claim under your auto insurance policy’s UM/UIM coverage, you need to get help from our North Carolina auto accident attorneys. Even though you are making a claim with “your” insurance company, it is critical to remember that insurance companies are never on your side. Their objective remains to make your claim go away as cheaply as possible. Our attorneys are prepared to stand up for your interests while seeking the maximum compensation you deserve from your UM/UIM policy.

Contact a North Carolina Car Accident Lawyer

If you’ve been injured in an accident caused by an uninsured or underinsured driver in North Carolina, it’s essential to understand your legal rights and options for seeking compensation. The experienced car accident attorneys at The Law Offices of John Drew Warlick, P.A., can manage the complex insurance claims process and fight for the maximum compensation you deserve.

Our compassionate legal team has served the people of Jacksonville, Camp Lejeune, and surrounding North Carolina communities for three generations. We understand the physical, emotional, and financial toll a severe car accident can take on your life. We’re here to provide the personalized attention and skilled representation you need during this challenging time.

Don’t let an uninsured or underinsured driver leave you struggling with mounting medical bills, lost wages, and other accident-related expenses. Contact The Law Offices of John Drew Warlick, P.A., today for a free consultation with one of our knowledgeable North Carolina car accident lawyers. We’ll review your case, answer your questions, and help you understand your legal options for pursuing the compensation you need to move forward with your life.

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