Uninsured motorist coverage in North Carolina: what you need and why

North Carolina requires uninsured motorist (UM) coverage on every auto policy. If you're hit by a driver who has no insurance, or who flees the scene in a hit-and-run, your UM coverage steps in and pays for your bodily injuries and, in NC, property damage from uninsured drivers.

NC minimum UM limits must equal your liability limits. If you carry 50/100/50 liability, you must carry at least 50/100/50 UM.

UIM is separate from UM but equally important. It activates when the at-fault driver has insurance, but not enough. If they carry 30/60 liability and your injuries total $150,000, your UIM coverage makes up the difference, up to your UIM limit. Many NC drivers carry only minimum limits, making UIM exposure common.

Health insurance covers medical bills, but UM is a broader recovery tool. UM also covers:

• Pain and suffering damages
• Lost wages from time missed at work
• Other economic and non-economic losses that health insurance doesn't touch

Health plans also sometimes subrogate against your auto injury recovery, they may seek reimbursement from your settlement. UM typically doesn't create the same offset issues.

A driver who leaves the scene is treated as uninsured in NC, your UM coverage applies. For property damage claims under UM, NC requires physical contact with your vehicle.

NC also allows UM stacking in some situations. Multiple vehicles on the same policy may stack their UM limits, effectively multiplying available coverage. Ask your agent whether your policy allows stacking.