Why Even State-Required Coverage Might Fall Short
North Carolina requires all drivers to carry a minimum level of auto insurance, but even with mandatory coverage in place, many accident victims find themselves under-protected when it matters most. This article breaks down what those legal minimums actually mean, what they include, and why it may still be wise to carry more coverage than the law requires.
State-Mandated Insurance Coverage in North Carolina
Every auto policy issued in North Carolina must meet the following minimum limits, as of July 1, 2025:
- $50,000 per person for bodily injury liability
- $100,000 per accident for bodily injury liability
- $50,000 per accident for property damage liability
These are the baseline coverage amounts required by state law. All auto insurance policies are also required to include Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage that matches these same minimum bodily injury limits.
What UM and UIM Coverage Actually Do
UM (Uninsured Motorist) coverage helps protect you if you're injured in a crash caused by a driver who doesn’t carry any insurance.
UIM (Underinsured Motorist) coverage kicks in when the at-fault driver’s insurance doesn’t fully cover your injuries or damages. Together, these coverages help you recover compensation if the other driver can’t pay.
By law, UM and UIM must now be included in all policies, even those carrying only the minimum limits. That means every new or renewed auto policy in North Carolina includes at least $50,000 per person and $100,000 per accident in UM/UIM protection.
What Many Drivers Don’t Realize About These Limits
Legal minimums are just that, minimums. They may not come close to covering the actual costs of a serious crash. Here’s why:
- Medical bills from a single emergency room visit can exceed $10,000–$20,000
- If surgery or rehabilitation is needed, total costs may rise to six figures
- Property damage often goes beyond the $50,000 minimum, especially in multi-car or high-speed collisions
And if you cause a crash and the damages exceed your liability limits? You may be personally responsible for the difference, which can put your savings, income, or even home at risk.
No More Setoffs, Victims Can Access the Full UIM Amount
In the past, UIM benefits could be reduced by the amount paid by the at-fault driver’s insurance company. But that offset is no longer allowed, as of July 1, 2025.
If the at-fault driver’s policy only covers part of your damages, you may now collect the full amount of your UIM coverage on top of what you received from their insurer, offering much better financial protection.
Stacking Policies for Better Coverage
Another major change, as of July 1, 2025: North Carolina now permits inter-policy stacking for UM/UIM coverage. That means if you own two vehicles, each insured under separate policies, you can combine the UM/UIM limits from both policies if needed.
Example: Two vehicles, each with $50,000 in UIM = up to $100,000 total protection if you're injured by an underinsured driver.
This kind of flexibility was not previously available, and it can make a big difference in how much compensation you’re able to recover.
A Smarter Approach to Insurance
It often costs surprisingly little to increase your coverage beyond the minimum. For just a few extra dollars per month, you can dramatically improve your financial safety net:
- Increasing to $250,000/$500,000 coverage might only add $10–$15 to your monthly premium
- Higher UM/UIM limits offer better protection against hit-and-runs, uninsured drivers, and underinsured drivers
Don’t Wait to Find Out Your Policy Isn’t Enough
If you’ve been in a crash and are unsure what your policy actually covers, or if you’re thinking about adjusting your coverage levels, it’s worth speaking with an attorney or your insurance agent.
At Shankle Law Firm, we help people understand their rights, challenge unfair insurance practices, and pursue the compensation they deserve after serious accidents. Whether you’re reviewing your policy or dealing with the aftermath of a crash, we’re here to help.
Need Help Understanding Your Coverage?
Call today for a free consultation with Attorney Maggie Shankle, a Board-Certified Workers’ Compensation Specialist and seasoned personal injury attorney. We’ll review your situation and help you make confident decisions, no pressure, no confusion.
* NC Laws Updated July 1, 2025* Please Note - The content on this website is for informational purposes only and does not constitute legal advice. Viewing this site, using information from it, or communicating with Shankle Law Firm, PA through this site does not create an attorney-client relationship. For legal advice tailored to your situation, please contact us directly at (704) 370-1212.