Understanding North Carolina's auto insurance requirements is essential for every driver in the state, and it becomes critically important after a car accident. The amount and type of insurance coverage available can directly determine how much compensation you can recover for your injuries.

North Carolina Minimum Insurance Requirements

North Carolina law requires all registered vehicles to carry the following minimum liability insurance coverage:

  • Bodily injury liability: $30,000 per person and $60,000 per accident
  • Property damage liability: $25,000 per accident
  • Uninsured motorist coverage: $30,000 per person and $60,000 per accident (North Carolina is one of the few states that requires UM coverage)

These are the minimum amounts required by law. Many financial advisors and insurance experts recommend carrying significantly higher limits to protect yourself and your assets.

Why Minimum Coverage May Not Be Enough

The minimum liability coverage of $30,000 per person may seem adequate, but a single emergency room visit can easily exceed that amount. A serious injury requiring surgery, hospitalization, and rehabilitation can generate medical bills in the hundreds of thousands of dollars. If the at-fault driver carries only the minimum coverage, there may not be enough insurance to cover your losses.

This is where underinsured motorist (UIM) coverage becomes critical. UIM coverage on your own policy kicks in when the at-fault driver's insurance is not sufficient to cover your damages. We strongly recommend carrying the highest UM/UIM limits your budget allows.

Uninsured Motorist Coverage in North Carolina

North Carolina is unique in that it requires all auto insurance policies to include uninsured motorist coverage. This coverage protects you if you are hit by a driver who has no insurance at all, or by a hit-and-run driver who cannot be identified. The minimum UM coverage matches the minimum liability limits of $30,000 per person and $60,000 per accident, but you can purchase higher limits.

How Insurance Affects Your Accident Claim

After a car accident, the insurance picture can be complex. Your claim may involve the at-fault driver's liability insurance, your own UM/UIM coverage if the at-fault driver is uninsured or underinsured, your own collision coverage for vehicle repairs, your personal injury protection or medical payments coverage, and the at-fault driver's employer's insurance if the driver was on the job.

An experienced attorney can identify all available sources of insurance coverage and pursue each one to maximize your recovery.

Stacking UM/UIM Coverage

North Carolina allows stacking of uninsured and underinsured motorist coverage in certain circumstances. Stacking means combining the UM/UIM coverage from multiple vehicles or multiple policies to increase the total coverage available. If you have multiple vehicles on your policy, you may be able to stack the UM/UIM coverage from each vehicle.

Protect Yourself

The best time to think about your insurance coverage is before you need it. Review your policy regularly and make sure you have adequate limits. If you have been in an accident and have questions about your insurance coverage, contact Dr. Ted Injury Law at (800) 555-HURT for a free consultation.