What Happens If the At-Fault Driver’s Insurance Isn’t Enough in North Carolina?
Key Highlights:Â Â Â Â Â
- Minimum insurance may not be enough. A serious car accident can easily exceed the at-fault driver’s insurance limits.
- There may be other options for recovery such as additional insurance policies or other liable parties that can offer greater compensation.
- Your UIM coverage may help cover damages that exceed the at-fault driver’s insurance limits.
- Don’t settle too quickly. Accepting an early offer could prevent you from pursuing other available compensation.
- An attorney can identify every available source of compensation. An extensive investigation can reveal coverage you might be initially unaware of.
If you’ve been injured in a car accident caused by another driver’s negligence, their liability insurance may be responsible for covering your damages. But what if their policy just doesn’t have enough coverage for your medical costs, the amount of income that you lost and the damages to your property?Â
Unfortunately, this is a scenario that is more common than most drivers realize. It can leave accident victims struggling to pay for the medical care that they shouldn’t have to cover in the first place.
If you have questions about this or any other legal matter, our experienced car accident lawyers at Tatum & Atkinson, PLLC will gladly help you.
Call 800-529-0804 today for a free consultation. You don’t have to pay anything unless we win your case.Â
Understanding North Carolina Auto Insurance Limits
North Carolina requires every registered driver to carry liability insurance, but the state only mandates a minimum amount of coverage. Under North Carolina General Statutes § 20-279.21 (enacted via Senate Bill 452 / Session Law 2023-133), the minimum required coverage increased for policies issued or renewed on or after July 1, 2025. Drivers with older policies may not see the new limits until their policy renews.
| Coverage Type | Old Minimum (before July 1, 2025) | New Minimum (July 1, 2025 and later) |
| Bodily injury, per person | $30,000 | $50,000 |
| Bodily injury, per accident | $60,000 | $100,000 |
| Property damage, per accident | $25,000 | $50,000 |
| UM/UIM coverage | Matches liability limits | Matches liability limits |
Although North Carolina increased its minimum liability limits in 2025, those minimums still may not be enough to cover the costs of a serious car accident.
Why Serious Car Accident Claims Often Exceed Policy Limits
In spite of these new minimums, the cost of one severe accident can exceed the limits of a minimum coverage policy.Â
The following are common causes for claims exceeding the limits:
- Medical expenses: ER visits, surgery, hospital stays, and extended care are costly.
- Lost income: Time away from work, especially if your injuries require a lengthy recovery or result in permanent disability. Learn more about how to prove lost wages in North Carolina.Â
- Pain and suffering: Non-economic damages that can rival or exceed medical costs in serious cases.
- Multiple injured parties: With multiple parties hurt in a collision, the per-accident cap can be quickly exhausted, and every victim could receive a smaller payout.
- Minimum-only policies: Many drivers only have the state minimum since it is the least expensive, and therefore don’t have enough coverage if they cause a serious accident involving catastrophic injuries.
How to Find Out the Other Driver’s Coverage Limits
Knowing the at-fault driver’s policy limits helps determine whether you’ll need to pursue additional sources of compensation.
- Insurance limits aren’t always disclosed right away. You may not be aware of how much coverage the at-fault driver carries at the onset of your claim.
- This information may be requested by an attorney. Policy limits will typically be available through discovery, demand letters, or a lawsuit.
- Knowing the limits helps shape your case. It determines whether you should pursue additional insurance coverage or other sources of compensation.
Can You Recover More Than What the At-Fault Driver’s Insurance Covers?
If the at-fault driver’s insurance isn’t enough to cover your losses, you might have other ways to recover compensation.
Using Your Underinsured Motorist (UIM) CoverageÂ
If the at-fault driver’s insurance isn’t enough, your Underinsured Motorist (UIM) coverage may help cover the remaining damages. Recent law changes in North Carolina may provide more recovery under your policy.
When Multiple Insurance Policies May Apply
More than one insurance policy may apply to your claim, including your own policy, the vehicle owner’s policy, a household member’s policy, or an umbrella policy. Multiple UIM policies may also be combined in some instances to provide a greater amount of compensation.
Suing the At-Fault Driver for Damages Beyond Insurance
If your damages still exceed all available insurance, you may be able to sue the at-fault driver personally. However, recovering compensation may be difficult if the driver has limited assets, so attorneys typically explore every available insurance policy first.
Who Else May Be Liable for Your Motor Vehicle Accident?
The driver who caused the accident may not be the only responsible party. In some cases, another person, business, or manufacturer may also share legal responsibility.
- Employer liability: If the at-fault driver was working, their employer may also be responsible and have higher insurance coverage.
- Commercial vehicle accidents: Truck, delivery, and company car accidents can involve several parties and their insurance policies.
- Defective vehicles or auto parts: If a defect in the tire, brake, airbag, or other part contributed to the accident, the manufacturer or parts supplier can be held liable.
“One of the first things we look for is whether there’s more than one source of compensation. In many cases, identifying additional insurance coverage or liable parties can make a substantial difference in our client’s recovery.” –Â Robert Tatum, Tatum & Atkinson, PLLC
What If There Still Isn’t Enough Money?
Even after identifying every available insurance policy, there may still not be enough money to fully cover your losses.
When the At-Fault Driver Can’t Pay
If the at-fault driver has few assets, recovering compensation beyond their insurance coverage can be difficult. Even if you win your case, collecting the full judgment may not always be possible.
How Medical Liens Can Reduce Your Settlement
Under N.C. Gen. Stat. § 44-49 and § 44-50, healthcare providers, health insurance companies, Medicare, or Medicaid may assert legal liens to seek reimbursement for your medical costs. These liens are paid directly out of your settlement proceeds, which can reduce your total payout.Â
Why You Shouldn’t Accept the First Settlement Offer
Insurers might be willing to settle quickly before you know the full extent of your injuries. Accepting too soon could prevent you from recovering additional compensation if your damages are greater than expected.
How an NC Car Accident Attorney Can Maximize Your Recovery
A skilled North Carolina car accident lawyer can ensure that you receive the maximum compensation by:
- Locating all available insurance policies, including employer coverage, umbrella policies, and Underinsured Motorist (UIM) coverage.
- Working with insurance companies to make sure that you receive a fair settlement and do not end up with a lowball offer.
- Protecting your right to full compensation by avoiding costly mistakes, identifying every source of recovery and ensuring you understand the full value of your claim before settling.
Call Tatum & Atkinson, PLLC and Understand Your Legal Rights
Our attorneys at Tatum & Atkinson, PLLC, have achieved over $100 million in compensation on behalf of our injured clients, and we’re available for a free consultation. When you are not sure whether to hire a lawyer, our attorneys will be able to consider the specifics of your accident, clarify your legal rights and help you seek the compensation you need. In case we accept your case, you would not owe us anything unless we win or otherwise.Â
Call 800-LAW-0804 today to learn more.
Disclaimer: This article is informational, and it is not legal advice. Every case is different. Discussion with a lawyer may assist you in knowing your individual legal alternatives.
Frequently Asked Questions!
Can I still recover compensation if the at-fault driver only has minimum insurance?
Yes. If the at-fault driver’s coverage is insufficient to compensate you, you may be able to recover additional compensation from your own Underinsured Motorist (UIM) policy or by collecting from other responsible parties through their insurance coverage.
Does filing a claim under my own UIM coverage increase my insurance rates?
Not necessarily. Filing a UIM claim does not automatically increase your premiums. Whether your rates increase depends on your insurance company, policy terms, driving history and the specific circumstances surrounding the accident.
What if the at-fault driver was uninsured instead of underinsured?
You may be able to file a claim through your Uninsured Motorist (UM) coverage if the at-fault driver does not have insurance. Generally, North Carolina mandates that drivers have UM coverage, and this can help ensure they are protected in these kinds of scenarios.
Can I recover compensation for future medical expenses?
Yes. Anticipated medical costs, such as future medical procedures, physical therapy, or long-term treatment, may be covered as part of your personal injury claim if there is evidence it will be needed as a result of your injuries.
Should I accept the insurance company’s policy limits offer?
Not until you understand the full value of your claim. Other insurance policies and liable parties might be available for additional coverage even when the insurer provides policy limits. An attorney can evaluate your options first.
