Updated June 2026
What Is Uninsured Motorist Coverage Insurance?
Uninsured Motorist Coverage steps in when the driver who caused your accident has no liability insurance or can't be identified after a hit-and-run. It pays your medical expenses, lost wages, and in some states your vehicle repair costs up to your policy limits. North Carolina law requires every carrier to offer it at limits matching your liability coverage, but you can reject it in writing. Once rejected, you give up the safety net for accidents caused by the estimated 7.4% of North Carolina drivers who carry no insurance.
- You're rear-ended at a stoplight by a driver with no insurance. You have $18,000 in medical bills from a back injury and $6,500 in vehicle damage. If you carry $25,000 in Uninsured Motorist Bodily Injury coverage, it pays your medical bills up to the limit. If you also carry Uninsured Motorist Property Damage, it pays the vehicle repair minus your deductible. Without this coverage, you pay both out of pocket or sue a driver who likely has no assets.
- Someone hits your parked car overnight and leaves the scene. You have $4,200 in damage and no way to identify the driver. If you carry Uninsured Motorist Property Damage with a $500 deductible, you pay $500 and the coverage pays $3,700. Without it, you either pay the full $4,200 or file under collision coverage, which typically carries a higher deductible and may raise your rate at renewal.
Who Needs Uninsured Motorist Coverage Insurance?
Retirees who drive a paid-off vehicle worth more than $5,000 should consider Uninsured Motorist Property Damage to avoid paying out of pocket after a hit-and-run — collision coverage on an older car often costs more and carries a higher deductible. Drivers with Medicare should know that Medicare covers medical bills after an accident, but it won't cover the vehicle damage or the gap if the at-fault driver's liability limit is lower than your medical costs, which is where Uninsured Motorist Bodily Injury fills in.
Add Uninsured Motorist Bodily Injury if the difference between your medical costs and what Medicare reimburses could strain your budget — a $25,000 limit costs under $12 monthly and covers the gap. Add Property Damage if your vehicle is worth enough that a $4,000 hit-and-run repair would hurt more than the $8 monthly cost, and you either don't carry collision or your collision deductible is higher than the uninsured motorist deductible.
How Much Does Uninsured Motorist Coverage Insurance Cost?
Uninsured Motorist Coverage typically adds $8 to $18 per month to a North Carolina retiree's premium, or roughly $96 to $216 annually, depending on the limits selected and the carrier's pricing structure.
- Coverage limits — matching your liability limits costs more than the state minimum, but closes the gap if you're hit by an uninsured driver with a serious injury claim.
- Whether you select Bodily Injury only or add Property Damage coverage — the latter protects your vehicle in hit-and-run scenarios but raises the cost.
- Your county's uninsured driver rate — urban counties with higher uninsured motorist populations often see slightly higher premiums for this coverage.
- Stacking election — some carriers let you stack coverage across multiple vehicles on the same policy, multiplying your limits but also multiplying the cost.
- Deductible on Property Damage portion — a $250 deductible costs more than a $500 or $1,000 deductible, but you pay less out of pocket per claim.