What to Do If the At-Fault Driver’s Insurance Isn’t Enough

When Will Underinsured Motorist Coverage Apply?

You were hit by another driver, and now the insurance numbers do not come close to matching the damage. The at-fault driver may have had no coverage, or they may have carried only the minimum required insurance. Either way, you are left with medical bills, missed work, vehicle damage, and a question that feels unfair: who pays for the rest?

That uncertainty can become overwhelming quickly. The at-fault driver’s insurance company may stop at the policy limit, even when your losses are much higher. Your own insurer may ask for statements, records, or forms before you fully understand what your policy provides. A rushed settlement or unclear release can also affect coverage you may still need.

At Marcari, Russotto, Spencer & Balaban, our car accident attorneys help injured people understand UM/UIM claims in Virginia, North Carolina, and South Carolina. We review the available policies, explain how recent state law changes may affect your recovery, and help you avoid steps that could limit your options.

How to Know If You Have a Claim After an Underinsured or Uninsured Driver Accident

The answer depends on the facts of your crash, the insurance policies involved, and the state where the claim is handled. Three common situations may trigger uninsured or underinsured motorist coverage.

• The at-fault driver had no insurance at all. This is usually handled as an uninsured motorist claim. UM coverage is required in Virginia, North Carolina, and South Carolina, although the exact policy language and limits vary by state.
• The at-fault driver had insurance, but the limits are too low. UIM coverage may apply when the at-fault driver’s available liability coverage is not enough to cover your documented losses.
• You were hit and the driver fled. Hit-and-run accidents can qualify as UM claims, but states and policies may impose reporting, proof, or notice requirements. Reporting the crash promptly and documenting what happened can protect your ability to use this coverage.

When the At-Fault Driver Has No Insurance at All

Your UM coverage may be the main practical source of recovery when the at-fault driver has no insurance. Virginia, North Carolina, and South Carolina all require UM coverage in qualifying auto policies, though the required limits and claim procedures are not identical.

In South Carolina, UM coverage is required at minimum 25/50/25 limits. UIM coverage is different. Insurers must offer UIM coverage, but policyholders are not required to buy it.

Hit-and-run claims can also proceed through UM coverage, but they may involve added notice and proof requirements. Report the crash, document what you remember, identify witnesses if possible, and notify your own insurer in writing.

When the At-Fault Driver’s Limits Are Too Low

This triggers your UIM coverage. The way that coverage interacts with the at-fault driver’s policy depends on your state and when your policy was issued or last renewed. That interaction has changed significantly in both Virginia and North Carolina in the last two years, which is why the state-specific rules in the next section matter for your specific claim.

How Underinsured Motorist Coverage Works in Virginia, North Carolina, and South Carolina

Virginia, North Carolina, and South Carolina now operate under substantially different UM/UIM rules, and recent legislative changes in both Virginia and North Carolina have shifted how much you can recover and how that recovery is calculated.

Virginia: Stacking Without Offset After the 2023 and 2025 Changes

Virginia made two changes that can affect UIM recovery.

The first change applies to many policies issued or renewed after July 1, 2023. Under Virginia law, UIM coverage is now paid without a credit for the at-fault driver’s available bodily injury or property damage coverage unless a named insured elected the older reduction method in writing. In practical terms, if the at-fault driver has $30,000 in available liability coverage and you have $50,000 in UIM coverage, qualifying no-offset coverage may make $80,000 available before other policy terms, damages proof, and claim issues are considered. Under the older offset structure, the available UIM benefit would have been reduced by the at-fault driver’s coverage.

The second change took effect for policies effective on or after January 1, 2025. Virginia’s minimum liability limits increased from 30/60/20 to 50/100/25. That means many minimum-limit policies now provide more liability coverage than they did before 2025.

If you were injured in Virginia, the date your policy was issued or renewed matters. So does whether a named insured elected the older UIM reduction method in writing.

North Carolina: New Minimum Limits and Mandatory UIM as of July 1, 2025

North Carolina made sweeping changes effective July 1, 2025 under Session Law 2023-133, amending NCGS 20-279.21. The North Carolina Department of Insurance confirmed the following changes for new and renewing policies:

• Minimum liability limits increased from 30/60/25 to 50/100/50.
• UIM coverage is now mandatory. Previously it could be declined.
• The liability credit rule is eliminated. Under the old rule, your UIM benefit was reduced by whatever the at-fault driver’s liability coverage paid. That reduction no longer applies.

The practical effect can be significant when the damages support the claim. For example, if the at-fault driver carries a 50/100/50 policy and you have $50,000 in applicable UIM bodily injury coverage, the new no-setoff rule may allow UIM coverage to apply beyond the exhausted liability coverage. Under the old credit rule, a matching liability limit could reduce or eliminate the UIM payment.

If you have questions about how these changes apply to your North Carolina car accident claim, the effective date of the policy and the type of policy involved matter. A claim involving a renewed private passenger policy may be treated differently than one involving an older policy, a fleet policy, or a commercial vehicle policy.

South Carolina: Mandatory UM, Optional UIM, Class I Stacking

South Carolina requires UM coverage at minimum 25/50/25 limits. UIM coverage is optional, but insurers must offer it. Carrying UIM coverage can be important when the at-fault driver has insurance but not enough to cover your injuries and losses.

South Carolina also has stacking rules that may increase the coverage available in some claims. Whether stacking applies depends on the policy language, the number of covered vehicles, whether the injured person qualifies as a named insured or resident relative, and whether an insured vehicle was involved in the crash. Because these details matter, stacking should be reviewed before accepting a coverage decision from the insurer.

South Carolina follows modified comparative negligence at the 50% threshold. If you are more than 50% at fault, you cannot recover. If you are 50% or less at fault, your recovery is reduced by your percentage of fault.

If you were injured in South Carolina, we can review the available policies and identify which coverage sources may apply.

What Steps to Take Right Now If the At-Fault Driver Does Not Have Enough Coverage

Time is a factor in UM/UIM claims. These steps protect your right to recover.

Notify Your Own Insurance Company

Most auto policies require prompt written notice to preserve a UM/UIM claim. Some policies specify a window of 30 days or fewer from the date of the accident or from the date you learned about the coverage gap. Failure to provide timely notice can give your carrier grounds to deny the claim entirely.

Try not to assume your carrier already knows. Notify them in writing and keep a copy of everything you send.

Do Not Sign a Release Without Reviewing It

This is one of the most important steps many people overlook. A release from the at-fault driver’s insurer may affect your remaining claims, even when the settlement only covers part of your losses.

The rules are state-specific. Virginia law allows certain liability-limit settlements to proceed without wiping out a UIM claim when the statutory process is followed. North Carolina requires careful written notice in UIM settlement situations so the UIM carrier has an opportunity to protect its rights. South Carolina law does not allow a UIM policy to require the insurer’s consent to settle with the at-fault party, but pleadings and notice issues can still matter if a lawsuit is filed.

If the at-fault driver’s carrier offers a settlement, do not treat the release as a routine form. Review it before signing so you understand whether it affects your UM/UIM coverage, your right to pursue additional coverage, or your ability to bring a claim against another responsible party.

Document Your Losses Completely

UM/UIM claims are paid based on the documented value of your damages. Medical records, wage loss documentation, repair estimates, and out-of-pocket expense receipts all support the claim. Gaps in documentation reduce what the insurer is willing to pay.

Know the Deadlines

The personal injury statute of limitations governs how long you have to file a claim in court. Your carrier notification deadline runs earlier. Missing the carrier deadline can cost you access to your own coverage even if the court deadline has not yet passed.

Can You Sue the At-Fault Driver Personally?

Yes. Whether it is worth pursuing is a separate question.

Most uninsured or underinsured drivers lack the personal assets to satisfy a judgment. A court judgment against someone with no assets is difficult to collect on. For many injured people, their own UM/UIM policy is the more practical path to recovery.

Three situations may make a direct claim worth evaluating.

• An umbrella policy behind the liability policy. Some drivers carry umbrella coverage that may apply after the underlying liability limit is exhausted. If the at-fault driver has an umbrella policy, there may be more coverage than the auto policy alone suggests.
• Employer liability. If the at-fault driver was working at the time of the crash, an employer, commercial auto policy, or business insurance policy may also be involved. These policies often carry higher limits than personal auto policies.
• Collectible personal assets. If the at-fault driver owns real property, business interests, or other assets that may be reached through a judgment, a direct claim may be worth considering. This requires a factual investigation.

We can evaluate which of these paths is worth pursuing alongside your UM/UIM claim. They are not mutually exclusive.

How Long You Have to File a UM/UIM Claim in Virginia, North Carolina, and South Carolina

The statute of limitations for the underlying personal injury claim sets the outer boundary. Your carrier notification deadline typically runs much sooner. Both deadlines matter.

• Virginia: Most personal injury claims must be filed within two years of the date of injury under Va. Code § 8.01-243. Notify your carrier in writing as soon as possible after discovering the coverage gap.
• North Carolina: Personal injury claims generally must be filed within three years of the date of injury under NCGS 1-52. North Carolina’s July 2025 changes also aligned the UM service of process requirements with standard defendant service, but the carrier notification obligation still runs earlier than the court filing deadline.
• South Carolina: The filing deadline is typically three years from the date of injury under S.C. Code § 15-3-530. Missing the carrier notification requirement under your policy can forfeit your coverage regardless of where you stand on the court filing deadline.

If you are not certain which deadline applies to your situation, reach out before the window closes. We can tell you exactly where you stand.

Why Choose Marcari, Russotto, Spencer & Balaban for Your Underinsured Motorist Claim

When the at-fault driver’s insurance falls short, you may have to turn to your own insurance company for help. That can feel frustrating. You paid for coverage, but the claim may still be questioned, delayed, or undervalued.

A UM/UIM claim requires more than proving the other driver caused the crash. You also need to identify every available policy, meet notice requirements, document the full value of your losses, and respond when the insurer argues that the available coverage is lower than you believe. We help injured people manage those issues while they focus on medical care, work, and family.

Three States, One Firm With Decades of UM/UIM Experience

We handle injury claims across Virginia, North Carolina, and South Carolina, including UM/UIM claims affected by state-specific insurance rules. These laws vary by state, and recent changes in Virginia and North Carolina can affect available coverage.

Our firm brings more than 200 years of combined attorney experience to injury and coverage-related claims. Founding partner Don Marcari has been licensed in North Carolina since 1985 and in Virginia since 1988. That history matters when a claim turns on policy language, state law, and timing.

24/7 Availability and 15 Offices Across the Carolinas and Virginia

We have 15 offices across Virginia, North Carolina, and South Carolina. Our attorneys travel to clients when needed. You can reach us by phone, email, live chat, or social media at any hour. We offer an initial free consultation so you can understand your options before committing to anything.

Client Testimonials

“I want to start by stating that the assistance provided by Ashely and Savannah was beyond phenomenal. The professionalism and care is something I valued greatly. Throughout my time with the firm I was contact regularly to see how I was doing. Furthermore, they did an excellent job in describing the entire claim process in laymen terms for me.” — Yosvel B.

“I had a truly wonderful and peaceful experience! Christi was always available to answer my questions and was incredibly kind and supportive throughout the process. Lynder negotiated a settlement that exceeded my expectations, and everything was handled seamlessly. Their professionalism and care allowed me to focus on healing, and I felt confident every step of the way that I was in the right hands! 10 out 10!” — Aliiciia B.

“I’m very pleased with Marcari, Russoto, Spencer and Balaban and the settlement they negotiated for us in our car accident case. Vicki Sullivan helped us the entire way through and let us know what to expect during the process. Thank you so much!” — Rachel L.

Frequently Asked Questions About Underinsured Motorist Coverage

Will My Insurance Premium Go Up If I File a UM/UIM Claim?

A UM/UIM claim is usually treated differently from an at-fault accident because you are seeking coverage after another driver caused the crash. That said, insurance rating rules and policy terms can vary by state, carrier, and claim history.

Ask your insurer to confirm in writing whether the claim will affect your rate. Keep a copy of that response with your claim records.

Does UM/UIM Coverage Pay for My Vehicle Damage Too?

It depends on your state and how your policy is written. Uninsured motorist property damage (UMPD) is a separate coverage line from uninsured motorist bodily injury. Virginia and South Carolina generally allow UM coverage to include property damage. North Carolina coverage varies by policy. Read your declarations page carefully or have an attorney review it before assuming bodily injury UM automatically covers your vehicle.

What If I Was a Passenger and Not the Driver?

Passengers typically have access to multiple layers of coverage. The at-fault driver’s liability policy covers you first. If that policy is insufficient, the vehicle driver’s UM/UIM coverage may apply. If you are a household member of a named insured, your own household policy may also apply. All three states allow these coverage sources to layer. Passengers who are resident relatives of a named insured often have access to stronger stacking options than drivers who are not.

Can I Recover More Than the Policy Limits?

You generally cannot recover more than the available insurance limits from a single policy. However, more coverage may be available when multiple policies or coverage layers apply.

Possible added sources include:

• UM/UIM coverage under your own policy.
• UM/UIM coverage under another household policy.
• Stacked coverage where state law and policy language allow it.
• An umbrella policy connected to the at-fault driver.
• A commercial or employer policy if the driver was working at the time of the crash.
• A claim against another responsible party, such as a vehicle owner, employer, or company that contributed to the crash.

We can review the policies, the crash facts, and the state law that applies to identify the available sources of recovery.

Talk to Marcari, Russotto, Spencer & Balaban About Your Underinsured Motorist Claim

Learning that the at-fault driver’s insurance may not cover your losses can make an already painful situation feel even heavier. You carried insurance. You reported the crash. You tried to follow the process. Now you are being asked to sort through policy limits, releases, medical bills, and claim deadlines while trying to recover.

You may still have options. The next step is understanding which policies apply, how much coverage may be available, and what you should avoid signing before your UM/UIM claim is protected.

Marcari, Russotto, Spencer & Balaban handles UM/UIM claims across Virginia, North Carolina, and South Carolina. Call 855-435-7247 or submit our online contact form for a free case evaluation. We will review your situation, explain your options, and help you decide what to do next.