Short Answer

Yes—under North Carolina law, you can pursue an underinsured motorist (UIM) claim through your own auto policy if the at-fault driver’s liability coverage is not enough to cover your injuries and the liability coverage is “exhausted” by settlement or judgment. UIM is not automatic in every situation, and the timing matters: you generally must give your UIM insurer written notice before you finalize a settlement with the at-fault driver so you do not accidentally give up UIM rights.

Understanding the Problem

If you were hurt in a North Carolina car crash and the other driver’s insurance is not enough, can you make a UIM claim under your own auto policy to help cover the gap—especially where you were taken by ambulance to the ER and later needed follow-up care?

Apply the Law

In North Carolina, underinsured motorist coverage is designed to protect an insured person who is legally entitled to recover damages from a driver whose liability insurance is too small for the injuries involved. A vehicle can qualify as an “underinsured highway vehicle” when the liability limits available (or, in multi-injury crashes, the amount actually paid to a particular injured person) are less than the injured person’s applicable UIM limits. As a practical matter, UIM coverage is generally triggered after the at-fault driver’s liability coverage has been exhausted by settlement or judgment, and there are strict notice and settlement-protection rules that can affect whether UIM benefits remain available.

Key Requirements

• You have UIM coverage on a North Carolina policy: UIM is commonly included with auto policies issued in North Carolina, but the amount available depends on the limits you purchased.
• The other driver is “underinsured” for your claim: The at-fault driver’s bodily injury liability coverage (or what is actually paid to you in a multi-claim situation) must be less than your applicable UIM limit.
• Liability coverage is exhausted: UIM is generally deemed to apply only after the at-fault driver’s liability coverage has been exhausted by settlement or judgment (with special rules when multiple people are injured).
• UIM pays the gap up to your UIM limit: The amount available is typically calculated as the difference between what was paid to you from the exhausted liability coverage and your applicable UIM limit(s).
• Written notice before you settle: Before you finalize a settlement with the at-fault driver, you generally must give your UIM insurer written notice of the tentative settlement so the insurer can protect its rights.
• 30-day “advance” window: After receiving proper written notice of a tentative settlement, the UIM insurer has a statutory window to advance (pay) the amount of that tentative settlement to preserve its subrogation rights; if it does not, it can lose certain settlement-approval/subrogation rights.

What the Statutes Say

• N.C. Gen. Stat. § 20-279.21 (Uninsured/Underinsured Motorist Coverage) - Defines underinsured highway vehicle, explains when UIM applies (including exhaustion), how limits are calculated, and sets notice/advance rules tied to settlements.
• N.C. Gen. Stat. § 1-540.2 (Property Damage Settlement Not a Bodily Injury Release) - Explains that settling property damage from a crash does not, by itself, release bodily injury claims unless the written settlement says it does.

Analysis

Apply the Rule to the Facts: Based on the facts provided, you have documented symptoms and treatment after a motor-vehicle crash (ER evaluation with imaging and follow-up care). If the at-fault driver’s bodily injury liability coverage is not enough to cover the value of those injuries and losses, a UIM claim through your own policy may be available. The key practical issues will be (1) confirming your UIM limits, (2) confirming the at-fault driver’s liability limits and whether they will be exhausted, and (3) giving your UIM insurer proper written notice before you accept any final settlement with the at-fault driver.

Process & Timing

1. Who files: The injured person (the policyholder/insured) makes the UIM claim. Where: With your own auto insurance carrier’s claims department (and, if a lawsuit is needed, in the appropriate North Carolina trial court—typically Superior Court—based on venue rules). What: A UIM claim notice and supporting documentation (crash report, medical records/bills, wage documentation if applicable, and proof of the at-fault driver’s liability limits and tender). When: As early as possible once it appears the liability coverage may be insufficient, and before you sign a final settlement/release with the at-fault driver.
2. Liability “exhaustion” step: The at-fault driver’s insurer typically tenders policy limits (or the per-occurrence limit is paid out among multiple claimants). UIM is generally deemed to apply after that exhaustion occurs.
3. Tentative settlement notice to UIM carrier: Before you finalize the liability settlement, you provide written notice of the tentative settlement to your UIM carrier. The UIM carrier then has a statutory opportunity to advance the settlement amount within 30 days to preserve its rights.

Exceptions & Pitfalls

• Signing the wrong release: The biggest avoidable mistake is signing a liability release (or settlement paperwork) that unintentionally cuts off UIM rights. Even if you are only trying to settle property damage, read the paperwork carefully so it does not say you are releasing “all claims.”
• Not giving written notice before settling: North Carolina’s UIM statute builds in notice and subrogation protections. If you settle too quickly without proper notice, you can create unnecessary coverage fights.
• Misunderstanding “how much UIM is available”: UIM is often not “in addition to” the liability payment in a simple way. The statute generally measures the available UIM limit as the difference between what was paid to you from the exhausted liability coverage and your UIM limit(s).
• Multiple-injury crashes: When more than one person is injured, the at-fault policy may be split among claimants. North Carolina law has specific rules that look at what was actually paid to you when deciding whether the vehicle is underinsured for your claim.
• Medical billing and Medicare issues: Having Medicare can affect how medical bills are paid while the claim is pending and may create reimbursement/coordination issues. It does not automatically prevent a UIM claim, but it is a reason to keep the claim paperwork organized and consistent.

Conclusion

In North Carolina, you can make an underinsured motorist (UIM) claim through your own auto policy when the at-fault driver’s bodily injury liability coverage is not enough and that liability coverage is exhausted by settlement or judgment. The amount available is generally the gap between what was paid to you from the exhausted liability coverage and your UIM limit(s). The most important next step is to give your UIM insurer written notice of any tentative settlement before you sign a final release.

Talk to a Personal Injury Attorney

If you’re dealing with a crash where the other driver’s insurance may not be enough, our firm has experienced attorneys who can help you understand your UIM options, protect your claim during settlement, and keep you on track with the required notices and timelines. Call (919) 704-9500 today.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.