Handling Accidents With Uninsured and Underinsured Motorists

Even if you follow all North Carolina motor vehicle laws, including obtaining the mandated insurance, you’re still at risk of accidents with uninsured motorists. If you are hit by an uninsured driver, you’ll need to file a claim with your insurance and potentially consider a lawsuit to recover damages.

If you’re thinking these situations are too rare to prepare for, think again. According to the Insurance Research Council’s 2023 study, one in seven drivers nationwide is uninsured. It’s essential you understand how insurance coverage works in these circumstances—and know which car accident attorneys can help you pursue compensation from an uninsured driver.

UM, or uninsured motorist, coverage is just what it sounds like and applies when you are injured by a driver who lacks liability insurance. Your auto insurance coverage should kick in whether the defendant was knowingly driving without insurance or accidentally let their coverage lapse.

Here are some things to keep in mind about UM coverage and claims:

• You’ll file the uninsured motorist claim against your own insurance policy.
• You must make the claim before the statute of limitations expires.
• UM policies provide bodily injury and property damage coverage typically matching the policyholder’s limits (which are set at $50,000 minimum in North Carolina as of July 2025).
• The coverage, including injury maximums, on your policy at the time of the wreck is the only coverage that will apply. (It cannot be applied retroactively.)
• UM coverage can apply to hit-and-run accidents, but the claim must meet strict legal requirements.

If you’re injured by a driver who does not have enough coverage to fully compensate you, you can apply for benefits through your own underinsured motorist policy. If this happens, keep these factors of UIM coverage in mind:

• UIM coverage is not mandatory unless your liability limits exceed state minimums, so you may not have this on your policy. If you have minimum liability coverage, you must request to add UIM.
• Underinsured benefits only pay out after the defendant’s policy has paid out that person’s damages, which is called “exhaustion of coverage.”
• Even if one dollar remains unpaid, you can’t tap into your UIM coverage until that final dollar is paid out.
• UIM coverage does not provide protection against property damage.
• North Carolina laws protect you from premium increases if you are not at fault in an accident where you file a UIM claim.
• The insurance company will not provide coverage if you settle a bodily injury or property damage claim without the company’s written consent.

UIM coverage can become tricky quickly, so it’s always best to consult a lawyer before trying to navigate underinsured motorist claims.

Even if your car accident seems straightforward, it can still be challenging to recoup your losses. Here are a few circumstances to prepare for when handling complicated insurance claims:

Insurance Disputes

Once you file a UM/UIM claim with your insurance company, the provider essentially steps into the shoes of the at-fault driver and may treat you like an opposing party. They may challenge the severity of your injuries, the necessity of medical treatments, and the value of your non-economic damages.

Proving the Driver Was Uninsured or Underinsured

Demonstrating that a driver was uninsured or underinsured requires official documentation from the NC Division of Motor Vehicles, or the other driver must sign an affidavit of no insurance. Drivers may try to avoid admittances because they face potential fines, license suspension, and even jail time for driving without insurance.

Accessing UIM Coverage

You must exhaust the at-fault driver’s liability insurance before your UIM coverage applies, and this can be a lengthy process. Once the other driver’s policy is maxed out, you’ll need to file a claim with your insurer. This involves providing a demand letter, documentation of damages, and proof of the at-fault driver’s insufficient insurance.

Many insurance policies require disputes over UM/UIM claim values to be settled via arbitration, which is a private process outside of court. If arbitration fails or the insurer denies a valid claim without reason, you may have the legal right to appeal. When the at-fault driver’s negligence caused the accident, you may choose to sue the uninsured driver for your harm.

North Carolina has no established guidelines that determine the amount owed to you for pain and suffering; if an insurance provider refuses to acknowledge mental and emotional damages, a lawsuit may be necessary. Though you can’t sue an insurance provider for refusal, an attorney can help you investigate their decision and pursue an appeal or a claim for deceptive business practices.

We’ve gathered this list of questions clients frequently ask us to help answer any lingering questions you may have about accidents with uninsured motorists:

What if the Uninsured Driver Flees the Scene?

When a driver flees, the crash can be classified as a hit and run per North Carolina’s motor vehicle laws. The driver may then face criminal consequences, and you can still sue an uninsured driver as long as the person is identified and apprehended.

How Will I Know if the Other Driver Is Uninsured?

You will usually be alerted to an uninsured driver by law enforcement at the scene of the crash after officers are unable to confirm or obtain the driver’s insurance credentials.

What if My Insurance Company Denies My Uninsured Motorist Claim?

If you are hit by an uninsured driver and have a legitimate claim, you can appeal the insurance provider’s unreasonable denial. North Carolina laws do not grant a private right of action, but when the company’s refusal falls under unfair and deceptive trade practices, the courts may grant your appeal. This can result in you receiving full compensation plus attorney’s fees, and in some cases, treble damages.

What if Car Accident Damages Exceed UM Coverage Limits?

When damages exceed UM coverage limits, you may be notified by the insurance provider that they will no longer pay for accident bills. When this happens, you may need to investigate the crash and the at-fault party further to explore any other avenues for restitution. A personal injury attorney can help investigate the fine print of policies for unfairly denied claims or untapped resources.

Can I Sue an Uninsured Driver?

Yes, but if the person has limited assets or financial resources, you may not receive the full damages awarded. Speak to an attorney about whether a lawsuit is the right avenue or if there are other coverage options that may help you move forward.

Do I Need an Attorney To Handle a Crash With a UM/UIM Driver?

While you can file a UM/UIM accident claim without an attorney’s help, if you’re met with any resistance from the insurance provider, having the legal backing of a lawyer can help legitimize your appeal.

If you still have questions, don’t hesitate to reach out to Miller Law Group for answers. Our attorneys can sort out UM/UIM claims and explain your legal options to determine the best path forward. Whether you need help understanding your policy coverage or to gather evidence of liability and handle negotiations, our attorneys have your back. Contact Miller Law Group attorneys today for a free consultation.