How the Hebert Case Temporarily Changed UIM Coverage for North Carolina Drivers
How the Hebert Case Temporarily Changed UIM Coverage for North Carolina Drivers
In March 2024, a significant legal decision in North Carolina shook the personal injury world. The Hebert case fundamentally altered how underinsured motorist (UIM) coverage works in the state of North Carolina, reversing decades of precedent and limiting how much compensation accident victims could receive. This decision created confusion and concern among Durham accident victims and personal injury attorneys alike. Fortunately, in July 2024, North Carolina Senate Bill 319 was passed to address the Hebert decision and restore more favorable UIM coverage rules for North Carolina drivers. In this post, we’ll explain what the Hebert case was, how it impacted UIM coverage, and what Senate Bill 319 did to fix the situation for accident victims.
What Was the Hebert Case?
The Hebert case, officially known as North Carolina Farm Bureau v. Hebert, was a landmark decision by the North Carolina Supreme Court that reinterpreted the state’s long-standing UIM rules. For nearly 30 years, North Carolina followed a “stack and compare” method for determining how much coverage a driver could access after an accident involving an underinsured driver. This rule allowed accident victims to stack UIM policies from multiple vehicles and compare the total to the at-fault driver’s liability coverage.However, in Hebert, the court ruled that UIM coverage could only be compared to the liability coverage of the vehicle involved in the accident, rather than stacking all available UIM policies. This meant that in many cases, accident victims would be left with significantly less compensation than they would have received under the old rule.Here’s an example of how the rule worked before and after Hebert:
Before Hebert (Stack and Compare Rule): If you had multiple UIM policies, you could combine the coverage amounts and compare them to the at-fault driver’s liability coverage.
For example, if the at-fault driver had $30,000 in liability coverage and you had two UIM policies of $100,000 each, you could stack those policies, giving you $200,000 in total UIM coverage. This would then be compared to the at-fault driver’s $30,000 liability coverage, providing you with significant protection.
After Hebert (Vehicle-Specific Comparison): The Hebert decision limited UIM claims to the amount of coverage provided by the vehicle involved in the accident, without stacking additional UIM policies.
In the same scenario as the one above, if the vehicle involved in the accident only had one UIM policy with $100,000 in coverage, you would be limited to that amount regardless of any other policies you may have had. The result? Many North Carolina accident victims would end up undercompensated for their serious and life threatening injuries, even if they had paid for additional UIM coverage.
The Response to Hebert: Senate Bill 319
As a Durham personal injury lawyer, I, along with the personal injury community, immediately recognized the negative impact the Hebert decision would have on accident victims. Fortunately, North Carolina lawmakers took swift action to reverse the decision. Passed in July 2024, Senate Bill 319 fixed the issues created by Hebert and restored the pre-Hebert interpretation of UIM coverage.Here’s what Senate Bill 319 did to help drivers:
Reinstated the Stack and Compare Rule: Senate Bill 319 restored the ability to stack UIM policies. This means that if you’re injured in an accident with an underinsured driver, you can combine all available UIM policies and compare the total amount of coverage to the at-fault driver’s liability limits. This provides greater financial protection for accident victims.
Immediate Effect for Pending Claims: The changes made by Senate Bill 319 took effect immediately upon the bill’s signing on July 2, 2024, and applied to all claims pending as of that date. This meant that drivers who were waiting on their claims, or who had not yet settled, could still benefit from the restored stacking rule.
Why This Matters for North Carolina Drivers
The return of the stacking rule is a significant win for North Carolina drivers. Here’s why:
Greater Access to Compensation: With the stack and compare rule back in place, accident victims can access the full extent of their UIM coverage, ensuring they aren’t left to cover large out-of-pocket costs after an accident.
Better Protection Against Underinsured Drivers: With medical costs and vehicle repair expenses constantly rising, many accidents result in damages that far exceed the at-fault driver’s liability coverage. By allowing drivers to stack UIM policies, North Carolina law provides better protection against this risk.
Example ScenarioLet’s look at an example to see how Senate Bill 319 benefits drivers:You’re driving in Durham, North Carolina when another car runs a red light and crashes into your vehicle. The at-fault driver has only $30,000 in liability insurance, but your injuries, medical bills, and property damage total $150,000. Fortunately, you have two UIM policies on separate vehicles, each with $100,000 in coverage.
Under the Hebert ruling, you would have only been able to access the $100,000 from the vehicle involved in the accident, meaning you would have been left with a $50,000 shortfall.
After Senate Bill 319, you can stack your UIM policies, giving you a total of $200,000 in UIM coverage. This allows you to claim the full $150,000 in damages, covering all of your expenses.
How to Protect Yourself
To make sure you’re fully protected after a car accident in North Carolina, consider taking the following steps:
Review Your UIM Coverage: Ensure that you have adequate UIM coverage. While the law now allows stacking, it’s still important to have enough coverage to protect you in the event of a serious accident. Talk to your insurance provider about increasing your UIM limits if necessary.
Check Policy Renewal Dates: The changes brought by Senate Bill 319 apply to all claims pending after July 2, 2024, but future insurance policy renewals will still need to comply with any new laws or changes. Be sure to check when your policy renews and make sure your UIM coverage aligns with the law.
Consult with a Durham Personal Injury Attorney: If you’ve been injured in an accident and are facing challenges with your UIM claim, it’s critical to work with an experienced attorney who understands the nuances of North Carolina’s UIM laws. An attorney can help you navigate the claims process and ensure you receive the full compensation you’re entitled to.
Statutes You Should Know
N.C. Gen. Stat. § 20-279.21: This statute outlines the requirements for UIM coverage in North Carolina, including the rules on stacking and comparing policies that were restored by Senate Bill 319.
N.C. Gen. Stat. § 20-279.5: This section provides definitions and clarifications for terms used in North Carolina’s auto insurance laws, including the term “underinsured motor vehicle.”
Do you need help with a Personal Injury?
If you’ve been injured in an accident and are unsure how North Carolina’s UIM laws affect your claim, contact our office today for a free consultation. The changes brought by Senate Bill 319 ensure that you’re fully protected, and our experienced Durham personal injury attorneys can help you navigate the legal process and get the compensation you deserve.
