No one plans to be in a car accident, but when it happens, the financial and emotional toll can be overwhelming—especially if the driver who caused the accident has no insurance or only carries the minimum required coverage.
In North Carolina, having uninsured/underinsured motorist (UM/UIM) coverage is one of the smartest decisions you can make to protect yourself and your family from financial devastation after a serious accident.
Understanding UM/UIM Coverage
Uninsured motorist (UM) coverage protects you when you’re in an accident caused by a driver who has no auto insurance. Underinsured motorist (UIM) coverage, on the other hand, steps in when the at-fault driver’s insurance limits are too low to cover all your damages. In North Carolina, while liability insurance is required, many drivers only carry the minimum limits or, worse, drive illegally without any coverage at all.
If you or a loved one is injured in a car accident caused by an uninsured or underinsured driver, UM/UIM coverage can help pay for:
- Medical expenses
- Lost wages
- Pain and suffering
- Future rehabilitation costs
- Wrongful death claims (in the worst-case scenario)
The Harsh Reality of Minimum Insurance Coverage in North Carolina
North Carolina law mandates that drivers carry at least $30,000 per person and $60,000 per accident in bodily injury liability coverage. Unfortunately, in the case of a severe injury, this amount barely scratches the surface of what is needed. Hospital stays, surgeries, physical therapy, and ongoing treatment can quickly exceed these limits, leaving victims with out-of-pocket expenses they may never be able to repay.
For example, if you are hit by a driver with the state’s minimum coverage, and your medical bills total $100,000, their policy may only cover $30,000. Without UIM coverage, you may be left to cover the remaining $70,000 yourself. However, with sufficient UIM coverage in place, your own insurance policy could cover the difference, protecting your financial well-being.
Be advised that these limits will change in NC on July, 1, 2025. At that time, minimum limits will jump to $50,000.00 per person and $100,000.00 per accident. In addition, new laws will allow a person who is in a car wreck to recover the full amount of their policy. Currently and as noted above, UM/UIM coverage will cover the difference. As of July 1, 2025, you will be able to recover the $50, 000.00 from the at fault driver plus the full value of your UM/UIM policy.
Protecting Yourself and Your Family
Most people don’t review their auto insurance policy until it’s too late—after an accident has already happened. Take the time today to review your policy and ensure you have adequate UM/UIM coverage. Many insurance agents recommend carrying at least $100,000 in UM/UIM coverage per person, but depending on your financial situation and risk tolerance, you may want to increase that amount further.
Here’s what you can do right now:
- Check your policy – Look at your declarations page and see what level of UM/UIM coverage you currently have.
- Consider increasing your limits – Raising your UM/UIM coverage is often more affordable than you think.
- Talk to your insurance agent – Ask them about your options and how additional coverage can benefit you.
Final Thoughts
Having UM/UIM coverage isn’t just a good idea—it’s essential. Don’t leave yourself or your family vulnerable to the financial ruin that can follow a serious car accident. Take a few minutes today to review your policy, ensure you have adequate coverage, and gain peace of mind knowing that if the worst happens, you’ll be protected. In North Carolina, where uninsured and underinsured drivers are all too common, making this small change to your policy can make a world of difference.
Contact Kornbluth Ginsberg today or call 24/7 at 919-980-9895 for a free consultation with a skilled NC car accident lawyer to discuss your specific situation. Our office is conveniently located at 3400 Croasdaile Drive, Suite 300. Durham, NC. We are ready to help you understand your legal options.
