Uninsured Motorist Coverage — North Carolina
Uninsured and underinsured motorist coverage pays for your injuries and vehicle damage when you're hit by a driver who has no insurance or too little insurance to cover your losses.
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What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) and underinsured motorist coverage (UIM) protect you when the driver who caused your accident doesn't have insurance or doesn't have enough to cover your medical bills, lost wages, and vehicle repairs. UM kicks in when the at-fault driver has zero insurance. UIM covers the gap when their liability limits fall short of your actual damages.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry UM/UIM if you drive frequently in areas with high uninsured driver rates, if your health insurance has high deductibles or doesn't cover auto accident injuries fully, or if you're the primary income earner in your household and can't afford weeks of unpaid recovery after an accident. It's especially valuable if you carry liability-only or minimum coverage and lack collision or comprehensive to cover your own vehicle.
Stacking makes sense if you insure multiple vehicles and want maximum protection, but costs rise significantly.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
- Your UM/UIM limits — matching your liability limits costs more but closes coverage gaps if you're hit by an underinsured driver with serious injuries.
- Stacking election — stacked UM/UIM multiplies your per-vehicle limit by the number of insured vehicles, doubling or tripling your available coverage but raising premiums 30 to 50 percent.
- Your county's uninsured driver rate — counties with higher uninsured motorist rates see slightly higher UM/UIM premiums due to elevated claim frequency.
- Your liability limits — carriers often require UM/UIM limits to match or stay below your liability limits, so higher liability coverage indirectly raises UM/UIM cost.
- Claims history — prior UM claims can increase premiums at renewal, though less severely than at-fault liability claims.
