North Carolina Uninsured Motorist Coverage

Let’s take a look at how uninsured and underinsured motorist coverage protects drivers in North Carolina, what it means to be uninsured in the state, and other nuances about how the coverage works on a North Carolina car insurance policy.

In North Carolina, automobile insurance policies must include the mandatory coverage called uninsured motorist coverage (UM). Such coverage must be added to a minimum or full coverage policy to help the policyholder cover their medical expenses or vehicle repairs if they’re the victim of an accident caused by an uninsured driver.

UM coverage helps the policyholder cover their medical expenses or vehicle repairs in the event of an accident caused by a driver who lacks legally sufficient coverage. In North Carolina, the legal minimum amount of car insurance drivers must maintain is $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident (30/60/25 liability coverage), and the same 30/60/25 limit for uninsured motorist coverage (UM). Those who lease or finance their vehicles may also be required to maintain comprehensive and collision coverages on their policies.

While the law requires all drivers to maintain a minimum amount of UM on their policies, drivers can always opt to raise their UM limit on a full coverage policy. In an accident with an uninsured driver, policyholders can invoke their UM coverage to cover their medical expenses in the same way one’s liability coverage would cover the victim’s expenses in an at-fault accident. 

Since North Carolina isn’t a no-fault state but a tort state, at least one driver must be deemed at fault in every accident. While usually, accident victims depend on the at-fault driver’s liability coverage in an accident, when the at-fault driver doesn’t have a policy or doesn’t have enough liability coverage to cover the victim’s expenses, the victim would then use their own UM coverage. 

When invoking auto insurance coverage, drivers must first meet their deductible before receiving the full amount of their coverage. Once drivers meet their deductible, they can receive coverage up to their policy limits. If the victim’s expenses exceed their UM coverage limit, they may be able to sue the uninsured driver to cover the remainder of the expenses. 

Yes, North Carolina auto insurance laws require all drivers to have a minimum amount of uninsured motorist (UM) coverage. All drivers must have at least 30/60/25 UM on their policies, lest they be considered uninsured. 

Driving without sufficient coverage is illegal in the Tar Heel State and is punishable by law. Those who fail to maintain adequate coverage may face fines, fees, license and registration suspension, and possibly even jail time. Plus, those who fail to maintain a minimum coverage policy may require an SR-22, otherwise known as a DL-123 in North Carolina. This form can raise a policyholder’s premiums for years in the future and present a whole host of other obstacles and issues. 

While drivers are only required to maintain a limit of 30/60/25 UM coverage, policyholders may opt to raise that limit and add underinsured motorist coverage (UIM) on their full coverage policies. Maintaining more than the legal minimum amount of coverage can help protect drivers in various scenarios on the road, and carrying UIM can offer a wider range of protection when it comes to accidents with drivers who fail to maintain adequate coverage.

In North Carolina, the law requires all drivers to maintain minimum limits of both liability and uninsured motorist coverages. Without such coverages, drivers are considered illegally uninsured and may face legal consequences, such as fines, fees, license and registration suspension, or jail time. 

Drivers are legally required to maintain at least 30/60/25 liability and uninsured motorist coverages. All other coverages are optionally added to full coverage policies. While maintaining a minimum coverage policy may be the ticket to getting the cheapest policy in the state, a full coverage policy in the Tar Heel state isn’t too expensive as far as state averages go and may be the best policy in the state.

The average cost of a full coverage policy in North Carolina is about $1,340 annually, or about 20% less than the national average of about $1,670 annually. So, as far as average premiums go, North Carolina is one of the cheaper states for auto insurance, especially for those who opt for a minimum coverage policy, which averages about $670 annually.

In North Carolina, underinsured motorist coverage (UIM) is optional and can be added to full coverage policies. Drivers may invoke UIM coverage if the total of their expenses in an accident caused by another driver, insured or not, exceed their policy limits.

Drivers who have insurance may still be considered underinsured. If a driver maintains an active auto insurance policy and is deemed at fault in an accident, they may be underinsured if the victim’s expenses exceed the at-fault driver’s policy limits. If the victim carries UIM coverage, they may invoke it in this case to cover the difference between their expenses and the at-fault driver’s coverage limits. 

In North Carolina, the uninsured motorist coverage statute of limitations is generally about three years from the date of the accident. This means drivers who wish to receive compensation from their insurer for the accident must file a claim no later than three years after the accident. 

It’s essential to note, though, that accidents are often treated on a case-by-case basis, and this is just a blanket rule that doesn’t account for the nuances of each accident. If you’re concerned about receiving your coverage as soon as possible, don’t wait to file your claim. Every accident and every insurer is different, so the sooner you file, the better. 

Being an uninsured motorist in North Carolina is illegal, so it’s important to maintain a policy with at least the legal minimum of liability and UM coverages. Whether you’re interested in a minimum coverage policy or a full coverage policy with a higher limit of UM coverage than what’s legally necessary, the best way to see all the policies you qualify for is to get and compare quotes online. By getting and comparing quotes online, you can ensure you get to tailor a policy to your needs and your budget.

Luckily for you, quotes are our favorite thing here at Clovered. We even have a free quoting tool you can use to access your quotes in just minutes! If you prefer to speak with someone about your quote, you can contact one of our licensed agents at 833-255-4117 or [email protected].