Uninsured Motorist and Underinsured Motorist Auto Coverage: What Is It?

Uninsured Motorist (UM)/Underinsured Motorist (UIM) coverage is not an optional add-on to your auto insurance policy in NC; it’s included in all policies. In addition, UIM now fully supplements the at-fault driver’s liability coverage, without offset, providing greater protection. Taking advantage of stacking coverage allows you to combine UM/UIM limits across policies, and service deadlines for UM/UIM insurers are now the same as for other parties, reducing procedural risk.

North Carolina requires the following insurance minimums as of July 2025:

• Bodily injury liability: $50,000/person, $100,000/accident
• Property damage liability: $50,000/accident
• Uninsured (UM) & Underinsured (UIM) Motorist Coverage (bodily injury): $50,000/person, $100,000/accident (now mandatory)
• UM/UIM Property Damage Coverage: $50,000/accident

Check Your Auto Policy Limits

The current rate minimums will be reflected in your yearly policy renewal after July 2025. Review your policy limits and consider whether your current coverage is adequate. With rising medical and repair costs, higher UM/UIM limits, and stacking, it can be especially vital in serious accidents. Discuss your options with your insurer or an attorney if an uninsured or underinsured driver has injured you.

When you find yourself involved in a car accident, it can be more than just inconvenient; it can be downright frustrating. Something that can help ease the worry is the thought that the other driver has insurance to cover all the costs of the accident. Unfortunately, this is not always the case.

According to data from the Insurance Information Institute, nearly 12% of motorists in North Carolina are driving without any insurance coverage at all. In an uninsured driver accident scenario, you may find yourself also responsible for the costs related to the accident. This means that everything from the damage caused to your vehicle to possible injuries can become your responsibility. Expenses could easily exceed the mandatory minimum coverage required.

Prior to July 2025, North Carolina state law required drivers to have the following minimum insurance:

• $30,000 for bodily injury coverage
• $60,000 for total bodily injury for all persons in an accident
• $25,000 for property damage liability
• Uninsured motorist coverage (optional)

North Carolina’s Department of Insurance defines uninsured motorist coverage as coverage that “will provide protection when an at-fault uninsured driver injures you or another covered individual. It also provides property damage coverage.” The Department defines Underinsured Motorist Coverage as that which offers “protection when an underinsured at-fault driver causes injury to a covered individual. An underinsured driver is one whose limits of liability are less than your UIM limits, and not enough to cover the losses of the people the underinsured driver injured.”

Our Experienced North Carolina Car Accident Attorneys Can Help

If you or a loved one has been injured in an accident due to the negligence of another, the experienced Car Accident Attorneys at Daggett Shuler can help. Call us today at 336-724-1234.