NORTH CAROLINA AUTO INSURANCE GUIDE
North Carolina Uninsured & Underinsured Motorist Coverage
North Carolina law requires uninsured- and underinsured-motorist coverage. Under current G.S. 20-279.21, UM and UIM bodily-injury limits generally track the highest bodily-injury liability limits for a vehicle insured under the policy unless the named insured selects permissible greater or lesser limits, subject to statutory minimums and maximum required offerings.
- Current UIM coverage applies after exhaustion of applicable liability coverage and begins with the first dollar of covered damages beyond the amount paid under the exhausted liability policy or policies.
- Current law generally does not reduce UIM limits by a liability setoff, apart from the workers’ compensation treatment specified by statute.
- Obtain declarations pages and notices of selected UM/UIM limits for every potentially applicable policy.
- Review the statutory 30-day advance-payment procedure before settlement with an underinsured motorist.
Primary North Carolina Source
N.C.G.S. § 20-279.21 — UM/UIM Coverage
Current-law review: September 17, 2026. Apply the policy version and July 1, 2025 reforms to the date of issuance or renewal.
VictimsGuide 