STATE LAW – NORTH CAROLINA LIBRARY – GUIDE 05
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.
PUBLIC-INTEREST LEGAL EDUCATION
VictimsGuide does not provide legal services or create an attorney-client relationship. Insurance requirements, deadlines, remedies and controlling authority can change. Verify current primary authority, policy language and the law applicable to the particular event before legal reliance.
Official North Carolina sources
North Carolina General Assembly · North Carolina Department of Insurance · North Carolina Judicial Branch