Although state law requires drivers to carry liability insurance, some motorists forego it, whether because they cannot afford insurance or do not realize their coverage has lapsed. Other motorists buy only the minimum amount of liability insurance required, which may not fully compensate you should one of those drivers cause a car accident that injures you. Fortunately, car insurance policies in North Carolina must provide uninsured and underinsured motorist coverage, which should cover you in cases where an at-fault driver does not have insurance or their insurance coverage cannot compensate you for all your losses.
Furthermore, in certain circumstances, you may have the right to combine uninsured or underinsured motorist coverage from multiple auto policies that insure you, a situation called “stacked coverage.”
Understanding Uninsured Motorist Coverage
Do you need uninsured motorist coverage in North Carolina?
North Carolina law requires motorists to carry uninsured motorist (UM) coverage equal to the highest bodily injury liability policy limits for any vehicle insured under the motorist’s insurance policy, up to a maximum of $1 million per person and $1 million per accident of UM coverage. In North Carolina, motorists must purchase bodily injury liability coverage with a policy limit of at least $50,000 per person, $100,000 per accident. However, motorists can purchase higher bodily liability coverage limits for increased premiums.
UM coverage applies when an insured person’s vehicle is hit by an uninsured motor vehicle. UM coverage also applies to hit-and-run accidents where authorities cannot identify the fleeing driver, as the law treats such drivers like uninsured motorists. After all, an injured accident victim has no way to bring a claim against the auto insurance coverage of an unidentified driver. Thus, UM coverage can help an accident victim recover compensation for losses they otherwise might obtain from an at-fault driver, such as medical expenses, lost wages, lost future earning potential, and pain and suffering.
The law excludes certain vehicles from the definition of an “uninsured motor vehicle,” including:
- A motor vehicle owned by the insured
- A motor vehicle owned or operated by a self-insured party
- A motor vehicle owned by the U.S. or Canadian governments, a state government, or an agency of such government
- A land motor vehicle or trailer operated on rails or crawler-treads, or while located for use as a residence or premises and not a vehicle
- A farm-type tractor or motor equipment designed primarily for use off public roads (except when upon public roads)
Understanding Underinsured Motorist Coverage
North Carolina also requires motorists to have underinsured motorist (UIM) coverage equal to the highest bodily injury liability policy limits for any vehicle insured under the motorist’s insurance policy, up to a maximum of $1 million per person and $1 million per accident. The law defines an “underinsured highway vehicle” as:
- A vehicle that has a total bodily injury liability coverage limit lower than the total losses sustained by an individual seeking payment of insurance benefits, or
- When an accident involves more than one injured person, causing the payment of insurance benefits to exhaust the total amount of bodily injury liability coverage before every victim can be adequately compensated
UIM coverage can help make up the difference between your total losses after a motor vehicle accident and the maximum amount of liability coverage that an at-fault driver has available to pay you compensation.
Can You Stack UM/UIM Coverage in North Carolina?
Under recent amendments to North Carolina’s UM/UIM law, an injured insured person may not stack the UM or UIM policy limits of two or more vehicles covered under the same insurance policy. However, should an insured person have UM or UIM coverage under multiple insurance policies, they may combine the highest applicable UM or UIM policy limit available under each policy to determine the maximum amount of UM or UIM coverage available to them for an accident.
For example, let’s say you have an insurance policy that insures three vehicles. In that case, you cannot combine the UM or UIM policy limits applicable to each vehicle under your policy. However, let’s now say you have an insurance policy that insures your vehicle, and you live in the same residence with other family members who have a separate insurance policy for their vehicle(s) under which you qualify as an insured. Under these circumstances, you may combine the highest UM or UIM policy limit in your auto policy with the highest UM or UIM policy limit in your family member’s policy.
How to Use These Coverages After a Car Accident
You can file an uninsured motorist claim by reporting the accident to your insurer and explaining that the at-fault driver does not have liability insurance or that they fled the scene. Similarly, you can file an underinsured motorist claim against your policy if your total losses will exceed the at-fault driver’s liability coverage (provided, that is, that your UIM policy limits exceed the at-fault driver’s total liability policy limit).
However, it’s important to understand that your insurer is a for-profit business that loses those profits when it pays out claims. As such, it will want to avoid paying you fairly, which is why you may need experienced legal advocacy when filing your UM or UIM claim. Your auto insurance provider may argue that your UM or UIM coverage does not apply to your claim. An attorney can argue for why the facts of your case should trigger UM or UIM coverage and determine the amount of collision coverage available to you.
Contact Our Durham, NC Car Accident Lawyers for Help
Uninsured or underinsured motorist coverage is a crucial safety net that gives you another option to recover compensation when you are hit by an uninsured or underinsured driver. However, accessing the full coverage you deserve may not be as straightforward as it should be. Rather than deal with the insurance company yourself, contact Kreger Brodish today for a free, no-obligation consultation with a Durham, NC, car accident lawyer. We’ll explain the scope of underinsured and uninsured motorist insurance and can help you demand the compensation to which you’re entitled.
