Short Answer

Yes—often you still can. In North Carolina, if the at-fault vehicle has liability insurance but the liability insurer denies coverage, the vehicle can be treated as an “uninsured motor vehicle” for UM purposes, which may allow you to pursue benefits under your own uninsured motorist (UM) coverage.

Underinsured motorist (UIM) coverage is different: it generally applies when the at-fault liability coverage exists but is not enough and has been exhausted by settlement or judgment. The right approach depends on whether the issue is a true coverage denial versus a low-limit situation.

Understanding the Problem

In North Carolina, can you use your own UM/UIM coverage when the other side’s insurer says it may not cover the crash because the policy may not match the business, vehicle, or driver involved, especially where the police report lists multiple company names?

Apply the Law

North Carolina requires most auto policies to include uninsured motorist (UM) coverage, and many include underinsured motorist (UIM) coverage. UM is designed to step in when the at-fault vehicle is legally treated as “uninsured.” Importantly, North Carolina law says a vehicle can be “uninsured” even if there is a liability policy out there—if the liability insurer denies coverage for the crash.

UIM, on the other hand, is generally about not enough liability insurance (not a denial). UIM is typically triggered after the at-fault liability coverage that applies to the crash has been exhausted by settlement or judgment, and then UIM may pay amounts beyond what was paid under the liability policy, up to the applicable UIM limits and rules.

Key Requirements

• You are an “insured” under the UM/UIM policy: Coverage usually applies to the named insured and certain household family members, and often to occupants of the covered vehicle, depending on the policy and facts.
• UM trigger (coverage denial): If the at-fault vehicle has liability insurance but the insurer denies coverage, North Carolina law can treat that vehicle as “uninsured” for UM purposes.
• UIM trigger (not enough coverage): UIM generally applies when the at-fault liability coverage that applies to the crash is exhausted and still does not fully cover the injury claim.
• Notice and procedure matter: UM/UIM claims have specific notice and lawsuit procedures. For UM, North Carolina has a 60-day notice rule tied to filing suit when you believe the defendant is uninsured.
• Do not jeopardize subrogation: With UIM in particular, settlements can require advance written notice to your UIM carrier and a waiting period before finalizing, so the carrier can protect its rights.
• Commercial/fleet complications: Coverage questions can be more complicated with commercial vehicles and business policies, including whether UM/UIM is required on certain commercial or fleet policies.

What the Statutes Say

• N.C. Gen. Stat. § 20-279.21 (UM/UIM coverage; definitions; procedures) - Defines when a vehicle is “uninsured” (including when the liability insurer denies coverage) and sets key UM/UIM rules, including notice and UIM settlement protections.
• N.C. Gen. Stat. § 20-279.33 (Self-insurers) - Explains when an entity may qualify as a self-insurer, which can affect whether a vehicle is treated as uninsured.

Analysis

Apply the Rule to the Facts: Here, the insurer is reviewing whether the commercial vehicle and driver are actually covered because the police report lists multiple company names and the insurer believes the vehicle/driver may not be listed on the policy. If the liability insurer ultimately issues a denial of coverage for the crash, North Carolina law may treat the at-fault vehicle as “uninsured,” which can open the door to a UM claim under your own policy (assuming you qualify as an insured under that policy). If coverage is confirmed but the available limits are not enough, the issue may shift from UM to UIM, which usually requires exhaustion of the liability coverage before UIM applies.

Process & Timing

1. Who files: The injured person (or their attorney) makes a UM/UIM claim with their own auto insurer. Where: It starts as an insurance claim; if a lawsuit is needed, it is typically filed in North Carolina state court (District or Superior Court, depending on the case). What: A written claim notice, supporting records (medical records/bills, wage loss proof, crash documents), and—if suit is filed—service/notice to the UM/UIM carrier as required by statute and the policy. When: For UM cases where you believe the defendant is uninsured, North Carolina law requires giving the UM insurer at least 60 days’ notice before filing suit based on that belief.
2. Coverage position develops: While the other side’s insurer investigates (for example, whether the correct business is the named insured and whether the vehicle/driver are covered), your UM/UIM carrier may also investigate and request documentation. Expect requests for the denial letter (if issued), policy information, and proof of damages.
3. Resolution path: If the case proceeds as UM, your insurer may defend in the name of the uninsured driver or in its own name as allowed by statute. If the case proceeds as UIM and there is a proposed liability settlement, you generally must give your UIM carrier written notice of the tentative settlement and allow the statutory time window for the carrier to respond before finalizing, to avoid harming your UIM claim.

Exceptions & Pitfalls

• “Denial” vs. “delay”: A carrier saying “coverage is under review” is not always the same as a formal denial. UM may be clearer once there is a written denial of coverage.
• UIM settlement notice trap: If liability coverage exists and you settle without following the UIM notice/response procedure, you can create avoidable disputes about UIM benefits and the insurer’s rights.
• Commercial/fleet policy issues: Some commercial or fleet policies are not required to provide UM/UIM in the same way as private passenger policies, and that can affect what coverage exists on the at-fault side and how your own UM/UIM applies.
• Who is an “insured”: UM/UIM often depends on your status under the policy (named insured, resident relative, occupant, permissive user). Do not assume you qualify without checking the policy and facts.
• Multiple potentially responsible parties: When multiple businesses are listed, there may be more than one potentially applicable liability policy. UM/UIM strategy often depends on confirming all available liability coverage first.

Conclusion

Yes. In North Carolina, if the at-fault insurer denies coverage for the crash, the at-fault vehicle can be treated as “uninsured,” which may allow you to pursue benefits under your own UM coverage. UIM is different and usually applies only after the at-fault liability coverage that applies to the crash has been exhausted. A practical next step is to give your UM/UIM carrier written notice and, if you may need to file suit as a UM case, provide the required 60-day notice before filing.

Talk to a Personal Injury Attorney

If you’re dealing with a crash where the other side’s insurer is questioning whether the vehicle, driver, or business is actually covered, our firm has experienced attorneys who can help you line up the right insurance claims, protect UM/UIM rights, and track the notice and timing rules. Reach out today. Call [CONTACT NUMBER].

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.