Even at the outset, it must be noted that some changes have been made during January 2009 to the Uninsured Motorist Laws as well as underinsured Motorist Laws in North Carolina. North Carolina Motor Vehicle General Statute 20-279.21(b) (3) and (b) (4) has been amended by North Carolina House Bill 738.
Coverage
The amendment make it legally binding for all drivers to carry uninsured motorist (UM) coverage along with the auto insurance policy and in certain cases drivers also need to carry underinsured motorist (UIM) coverage.'
North Carolina Motorist law directs insurance companies to provide notice to policyholders when they commence a new policy as also during renewals their right to buy greater or less UM and UIM coverage
It is evident that most drivers in North Carolina are not particularly happy with UM/UIM coverage becoming mandatory '�� more so, because the overall auto insurance rates have gone up. But this amendment is a progressive measure, even if it means some additional expense.
Negligence of Drivers
Even though North Carolina law lay down that all drivers must carry minimum liability coverage, the law is more breached than adhered to. There are numerous drivers who blatantly disobey this law. These drivers seldom realize that if an accident causes serious injury, they will have to pay for their own medical bills, as also loss of wages.
As in many other States, UM helps cover the losses if a driver has no insurance or is involved in a hit-and-run accident. The Uninsured coverage are basically of two types - one for bodily injury' known as UM-BI and another for property damage' known as UM-PD. In North Carolina drivers are mandated to carry both types of coverage.
As is known, UMI is meant to cover the costs pertaining to bodily injury when the car accident is caused by a driver with inadequate insurance.
North Carolina has a unique UM coverage as it provides two different options for Uninsured Motorist Bodily Injury coverage. You are allowed to buy Uninsured Motorist Bodily Injury without Underinsured Motorist Bodily Injury coverage. Alternately, you can buy combined Uninsured/Underinsured Motorist Bodily Injury. Some insurance companies however deny you the choice and offer only the combined coverage Uninsured/Underinsured Motorist Bodily Injury.
The North Carolina Financial Responsibility Laws stipulate that minimum Automobile Liability coverage has to be maintained. The minimum liability requirements as applicable in North Carolina are $30,000 per person, $60,000 per accident and $25,000 property damage - or more popularly known as 30/60/25.
However, policies pertaining to vehicles or fleet of vehicles solely meant for commercial purposes are exempt from UM/UIM coverage in North Carolina.
