Short Answer

In North Carolina, you can use uninsured motorist (UM) coverage only if the at-fault vehicle is legally uninsured for the crash or the liability insurer denies coverage. The fact that the policy isn’t in the driver’s name does not decide coverage—insurance usually follows the vehicle, not the person. If the owner’s policy applies (for a permissive driver), UM will not. If liability coverage is denied or doesn’t exist, your UM coverage can step in.

Understanding the Problem

In North Carolina personal injury cases, the key question is whether you can turn to your own uninsured motorist coverage when the at-fault driver’s liability policy isn’t in that driver’s name. You are the injured party; you want payment for injuries and losses; and the trigger is whether the at-fault vehicle’s liability insurance actually covers this crash. One salient fact here is that the at-fault driver was unlicensed.

Apply the Law

North Carolina requires UM coverage in auto policies to pay when a legally uninsured driver causes injury. A vehicle counts as “uninsured” when there is no applicable liability insurance for the accident, or when the liability insurer denies coverage, or in certain hit-and-run situations. Coverage generally follows the vehicle, so an owner’s policy can cover a permissive driver even if the driver’s name is not on the policy. If some liability coverage applies but is too low, that’s an underinsured motorist (UIM) problem, not UM.

Key Requirements

• Uninsured status: The at-fault vehicle must have no applicable liability coverage for this crash, or the insurer must deny coverage.
• You are an insured under your policy: Typically the named insured, a resident family member, or an occupant of the covered auto.
• Negligence and causation: The uninsured driver’s negligence caused your injuries and damages.
• Damages within limits: You must prove injury and losses; your UM payment is capped by your UM policy limits.
• Notice and litigation service: Give your UM insurer prompt notice. If you sue the at-fault driver, you must also serve your UM insurer so it can participate.

What the Statutes Say

• North Carolina Gen. Stat. § 20-279.21 (Financial responsibility; UM/UIM) - Requires UM coverage, defines when a vehicle is uninsured, and sets service/participation rules for UM insurers in lawsuits.
• North Carolina Gen. Stat. § 20-309 (Mandatory liability insurance) - Requires owners to maintain liability insurance for vehicles operated in North Carolina.
• North Carolina Gen. Stat. § 20-279.21(b)(4) (Underinsured motorist coverage) - Explains UIM coverage when the at-fault driver’s liability limits are insufficient.

Analysis

Apply the Rule to the Facts: An unlicensed driver does not automatically make the car “uninsured.” If the owner’s policy covers permissive drivers, that liability coverage should respond even if the driver’s name isn’t on it, so UM would not apply. If the insurer denies coverage (for example, because the driver had no permission or was an excluded driver), then the vehicle is treated as uninsured and your UM can respond. Your minor child can typically access UM if they qualify as an insured under your policy or were an occupant of your covered vehicle.

Process & Timing

1. Who files: You (the injured policyholder). Where: Start with a claim to your own auto insurer’s UM department in North Carolina. What: Provide written notice of a UM claim, a coverage denial letter (if available), police report, medical records, and proof of damages. When: Do this as soon as possible; policies require prompt notice.
2. If liability is disputed or UM is contested, file a negligence lawsuit against the at-fault driver in the appropriate North Carolina civil court (District or Superior Court based on claimed damages), and serve your UM insurer with the summons and complaint so it can participate.
3. Resolve by settlement or judgment. If UM applies, your insurer pays covered damages up to your UM limits after you sign a release or the court enters judgment.

Exceptions & Pitfalls

• Permission matters: If the at-fault driver had the owner’s permission, the owner’s liability policy often applies—even if the driver is unlicensed or not named on the policy—so UM would not.
• Excluded or non-permissive driver: A coverage denial for an excluded or non-permissive driver can make the vehicle “uninsured,” enabling UM.
• Underinsured vs. uninsured: If some liability coverage exists but is too low, that is a UIM claim, not UM.
• Service trap: If you file suit and fail to serve your UM insurer, it may not be bound by the judgment and UM benefits can be jeopardized.
• Policy conditions: Follow your policy’s notice, cooperation, and consent-to-settle terms; violating them can affect coverage.

Talk to a Personal Injury Attorney

If you’re dealing with injuries from a crash and aren’t sure whether UM or UIM applies, our firm has experienced attorneys who can help you understand your options and timelines. Reach out 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.