The Driver Who Hit Me Has No Insurance in NC -- Now What?

The Bottom Line

If the driver who hit you has no insurance, your best option is usually filing an uninsured motorist (UM) claim through your own auto insurance. NC requires all auto policies to include UM coverage unless you specifically rejected it in writing. About 1 in 6 NC drivers are uninsured, so this is not a rare situation. Your UM coverage pays your medical bills, lost wages, and pain and suffering -- just as if the at-fault driver had insurance.

First: Confirm the Other Driver Is Actually Uninsured

Before assuming the other driver has no insurance, verify the situation. Sometimes drivers at the scene claim to be uninsured when they actually have coverage but do not have their card with them, have a lapsed policy that may still cover the accident date, or are covered under someone else's policy.

Your insurance company will investigate the other driver's coverage status as part of the claims process. You can also check with the NCDMV -- all registered vehicles in NC must have proof of insurance on file.

If the police report lists the other driver as uninsured, that is strong initial evidence, but the investigation may still reveal coverage.

Filing a UM Claim Through Your Own Insurance

An uninsured motorist (UM) claim is filed with your own insurance company, but it functions like a claim against the at-fault driver. Your insurer steps into the shoes of the absent insurer and pays your damages.

Here is how the process works:

Step 1: Report the accident to your insurer. Call your auto insurance company and tell them the at-fault driver is uninsured. Request to open a UM claim.

Step 2: Your insurer investigates. The adjuster will verify that the other driver is truly uninsured, review the police report, assess liability, and evaluate your damages -- just like any other liability claim.

Step 3: Document your damages. Provide medical records, bills, proof of lost wages, photos of vehicle damage, and any other evidence of your losses. The process mirrors a regular personal injury claim.

Step 4: Negotiate. Your insurer will make an offer. Yes, this means your own insurance company is both your insurer and the party you are negotiating against. This creates an inherent conflict of interest, which is why many people hire an attorney for UM claims.

Step 5: Settle or arbitrate. If you reach an agreement, you settle. If not, most NC policies include an arbitration clause for UM disputes.

How Much UM Coverage Do You Have?

NC law (N.C. Gen. Stat. 20-279.21) requires auto insurers to include UM/UIM coverage in every policy unless the policyholder specifically rejects it in writing. If you did not sign a written rejection, your UM coverage should match your liability coverage limits.

Common UM coverage amounts in NC:

The numbers represent thousands of dollars: 30/60 means $30,000 per person and $60,000 per accident. Your UM coverage pays up to these limits for bodily injury damages caused by an uninsured driver.

Check your declarations page (the summary document from your insurer listing all coverages) to confirm your exact limits. If you purchased higher UM limits than your liability limits, those higher limits apply.

Can You Sue the Uninsured Driver Directly?

Yes, you have the legal right to file a personal injury lawsuit against the uninsured driver. But here is the practical reality: most uninsured drivers are uninsured because they cannot afford insurance -- which means they usually cannot afford to pay a judgment either.

This is called being "judgment proof." You may win a $200,000 judgment, but if the driver has no assets, no savings, and limited income, collecting that judgment is extremely difficult.

There are situations where suing may make sense:

• The driver has significant assets (a home, business, investments) despite lacking insurance
• The driver was operating someone else's vehicle (the vehicle owner may have insurance or assets)
• You want a judgment on record that can be enforced later if the driver acquires assets
• Your UM coverage is insufficient to cover your damages and you need additional recovery

NC allows you to collect on a judgment for 10 years, and the judgment can be renewed. So even if the driver is judgment proof today, circumstances can change.

UM Arbitration in NC

If you and your insurance company cannot agree on the value of your UM claim, the dispute typically goes to arbitration rather than a trial. Most NC auto policies include a mandatory arbitration clause for UM disputes.

The arbitration process:

1. Either party demands arbitration in writing
2. You select one arbitrator, the insurer selects one arbitrator
3. The two arbitrators select a neutral umpire (if they cannot agree, a court appoints one)
4. The panel holds a hearing where both sides present evidence
5. The panel issues a binding decision on the amount owed

Arbitration is generally faster than a lawsuit (months vs. years) and less formal (no jury, relaxed rules of evidence). However, the decision is binding -- you typically cannot appeal to a court if you disagree with the amount.

What If You Do Not Have UM Coverage?

If you specifically rejected UM coverage when you purchased your policy (or if you do not have auto insurance at all), your options are more limited:

Collision coverage: If you have collision coverage, it will pay for your vehicle repairs minus your deductible -- but it does not cover medical bills, lost wages, or pain and suffering.

MedPay: If you have Medical Payments coverage on your auto policy, it covers your medical bills up to the policy limit (typically $1,000-$25,000) regardless of fault.

Health insurance: Your health insurance covers your medical treatment. However, your health insurer may have a subrogation right to recover from any settlement you receive.

Lawsuit against the driver: You can sue the uninsured driver, with the caveats about collectability discussed above.

Passenger in someone else's car: If you were a passenger, the driver's UM coverage may apply to you. UM coverage typically extends to passengers in the insured vehicle.

NC's Uninsured Driver Problem

North Carolina has one of the higher uninsured driver rates in the country. Approximately 1 in 6 drivers (about 16%) operate without insurance, despite NC law requiring all registered vehicles to carry at least 30/60/25 liability coverage.

The consequences for driving without insurance in NC are significant:

• License plate revocation
• $50 penalty plus $50 for each additional 30-day period without coverage
• Requirement to file an SR-22 (proof of insurance) for three years
• Possible criminal charges for repeat offenses

Despite these penalties, the uninsured rate remains stubbornly high because many drivers simply cannot afford premiums.

Hit-and-Run: A Special Type of Uninsured Motorist Claim

If the driver who caused your accident fled the scene, your UM coverage applies as if they were uninsured. In NC, for a hit-and-run UM claim:

• Report to police within 24 hours. This is a practical requirement for your UM claim, and leaving the scene of an accident is a criminal offense for the other driver under N.C. Gen. Stat. 20-166.
• Report to your insurer promptly. File the UM claim as soon as possible.
• Physical contact requirement: Some NC policies require physical contact between your vehicle and the hit-and-run vehicle. Others cover "phantom vehicle" situations where the other driver forced you off the road without contact. Check your policy language.
• Gather evidence: Dashcam footage, witness statements, paint transfer, and debris can all help identify the driver or at least prove the accident occurred as described.

Protecting Yourself Going Forward

After experiencing the reality of being hit by an uninsured driver, most people want to ensure they are fully protected. Here are the coverage recommendations:

• Carry UM/UIM coverage at 100/300 or higher. The cost difference between minimum and adequate UM coverage is typically $50-$100 per year. This is the single most valuable coverage on your policy.
• Add MedPay. Even $5,000 in MedPay provides a bridge for immediate medical bills regardless of fault or the other driver's insurance status.
• Consider an umbrella policy. An umbrella policy provides additional liability AND UM coverage above your auto policy limits.

Frequently Asked Questions

What do I do if the driver who hit me has no insurance in NC?▾

Your primary option is to file an uninsured motorist (UM) claim through your own auto insurance policy. NC requires all auto policies to include UM coverage unless you specifically rejected it in writing. Contact your insurer, report the accident, and file a UM claim. Your own insurance company essentially steps into the shoes of the at-fault driver's insurer and pays your damages up to your UM policy limits.

How common are uninsured drivers in North Carolina?▾

Approximately 1 in 6 drivers in North Carolina (about 16%) are uninsured, which is higher than the national average of about 12%. NC consistently ranks among the top 15 states for uninsured drivers. This is why carrying adequate UM/UIM coverage on your own policy is so important -- there is a meaningful chance you will be hit by someone without insurance.

Can I sue an uninsured driver in NC?▾

Yes, you have the legal right to sue an uninsured driver. However, there is a practical problem: most uninsured drivers are uninsured because they cannot afford insurance, which means they likely do not have significant assets to pay a judgment. You may win the lawsuit and get a judgment but be unable to collect. This is called being "judgment proof." The UM claim through your own policy is almost always the more practical option.

How does UM arbitration work in NC?▾

If you and your own insurance company cannot agree on the value of your UM claim, either party can demand arbitration. Each side selects an arbitrator, and the two arbitrators select a neutral umpire. The panel hears evidence and makes a binding decision on the amount owed. Arbitration is typically faster and less expensive than a lawsuit, but you are bound by the result. Your policy's arbitration clause governs the specific process.

What if I do not have UM coverage either?▾

If you do not have UM coverage, your options are limited. You can sue the uninsured driver directly (but collecting may be difficult), file under your own collision coverage for vehicle damage (if you have it), use MedPay for medical bills (if you have it), or check if you were a passenger in someone else's car whose policy provides UM coverage. Going forward, add UM/UIM coverage to your policy -- it is one of the most important coverages you can carry.

Is NC a state that requires uninsured motorist coverage?▾

NC is unique. The state requires insurance companies to include UM/UIM coverage in every auto policy by default. However, a policyholder can reject UM/UIM coverage in writing. If you did not specifically sign a written rejection, you have UM coverage at the same limits as your liability coverage. Check your declarations page to confirm your coverage and limits.

Does UM coverage apply to hit-and-run accidents in NC?▾

Yes. If the at-fault driver fled the scene and cannot be identified, your UM coverage applies as if the driver were uninsured. In NC, you must report a hit-and-run to police within 24 hours and to your insurer promptly. Some policies require physical contact between the vehicles, while others do not. Review your specific policy language or ask your insurer about the requirements.