An "uninsured motorist" is a driver with no liability coverage, or with less than the financial responsibility law requires. It could also be an insured driver whose insurance company denies coverage, or is insolvent.
You have to offer policy-owners protection against loss from uninsured motorists and for bodily injury from a hit-and-run accident. In North Carolina, policy-owners may purchase coverage up to a limit of $1,000,000 per person and per accident for bodily injury and a limit up to the highest amount of property damage liability coverage they carry on any one auto, subject to a $100 deductible.
If the insured person is injured in a car accident with an unknown driver, as in a hit-and-run, he or she must report the accident to the police within 24 hours, and to the insurance company within a reasonable time.
Auto insurance companies must also offer under-insured motorist coverage to policy-owners who carry more liability insurance than the minimum 30/60/25 above. The limit for this coverage is $1,000,000 for each person and for each accident.
You have to offer the coverage, but your applicant doesn't have to accept it.
Here's the notice that companies must provide to their applicants and policyholders:
NOTICE: YOU MAY PURCHASE UNINSURED MOTORIST BODILY
INJURY COVERAGE AND, IF APPLICABLE, UNDERINSURED
MOTORIST COVERAGE WITH LIMITS UP TO ONE MILLION DOLLARS
($1,000,000) PER PERSON AND ONE MILLION DOLLARS ($1,000,000)
PER ACCIDENT. THIS INSURANCE PROTECTS YOU AND YOUR FAMILY AGAINST INJURIES CAUSED BY THE NEGLIGENCE OF OTHER
DRIVERS WHO MAY HAVE LIMITED OR ONLY MINIMUM COVERAGE
OR EVEN NO LIABILITY INSURANCE. YOU SHOULD CONTACT YOUR
INSURANCE COMPANY OR AGENT TO DISCUSS YOUR OPTIONS FOR OBTAINING THIS ADDITIONAL COVERAGE. YOU SHOULD ALSO
READ YOUR ENTIRE POLICY TO UNDERSTAND WHAT IS COVERED
UNDER UNINSURED AND UNDERINSURED MOTORIST COVERAGES.