Short Answer

In North Carolina, you generally recover court costs and interest only if you obtain a court judgment, not during a routine claim review. In a contract claim against your insurer, prejudgment interest typically runs from the date of breach and is added to the judgment at the legal rate; postjudgment interest runs until paid. Costs are limited statutory items taxed by the court to the prevailing party. Unfair claim-handling can open additional remedies, but that requires a lawsuit.

Understanding the Problem

You’re asking whether you can make the insurer pay costs or interest after it reversed a property damage payment on your car claim in North Carolina. You are the policyholder seeking payment; the insurer reversed an initial payment and is now re-evaluating coverage with a possible adjuster reassignment. The question is whether North Carolina law lets you recover costs or interest in this situation.

Apply the Law

North Carolina law distinguishes between informal claim handling and litigation. Interest and court costs are typically awarded only in a lawsuit that results in a judgment. For contract disputes with an insurer, prejudgment interest is tied to the breach date and is part of the judgment. For tort claims, interest usually runs from when the lawsuit is filed. Court costs are limited and taxed to the losing party after judgment by the court. If the insurer’s claim handling violates North Carolina’s unfair trade practices law, you may pursue enhanced remedies (including treble damages and possible attorneys’ fees), but you must file a civil action. The main forum is the county’s Superior or District Court civil division; limitations periods and interest start dates vary by claim type.

Key Requirements

• Judgment required: Interest and taxable court costs are ordinarily awarded only if you sue and obtain a judgment.
• Prejudgment interest: In contract suits, it usually runs from the breach date; in property-damage tort suits, it generally runs from filing of the action.
• Postjudgment interest: Accrues on the judgment at the legal rate until paid.
• Taxable costs: Limited statutory items (e.g., filing fees, service fees) taxed by the court to the prevailing party; not the same as your full attorneys’ fees.
• Unfair claim practices: If the carrier’s conduct in commerce is unfair or deceptive, you may pursue treble damages and, in some cases, attorneys’ fees—requires a lawsuit and proof of actual injury.
• Deadlines: Contract claims are typically three years; unfair trade practices claims are generally four years; deadlines and triggers can vary by claim theory.

What the Statutes Say

• North Carolina Gen. Stat. § 24-5 (Prejudgment and postjudgment interest) - Sets when interest runs in contract and other civil actions and that it is added to judgments.
• North Carolina Gen. Stat. § 1A-1, Rule 68 (Offer of judgment) - Allows cost-shifting if a party rejects a timely offer and does worse at trial.
• North Carolina Gen. Stat. § 75-1.1 (Unfair or deceptive acts in commerce) - Authorizes civil claims for unfair or deceptive practices in commerce.
• North Carolina Gen. Stat. § 58-63-15(11) (Unfair claim settlement practices) - Lists insurance claim-handling practices deemed unfair; commonly used to show a § 75-1.1 violation.

Analysis

Apply the Rule to the Facts: Here, the insurer reversed an initial property-damage payment and is re-evaluating coverage. Unless you resolve this by agreement, interest and court costs typically become available only if you sue and win a judgment. If your claim proceeds as a contract action for policy benefits, prejudgment interest would usually run from the date the insurer breached (for example, when it reversed or refused to pay), and the court would add that interest to any judgment. If you also prove unfair or deceptive claim handling that caused additional harm, you could seek treble damages and possibly attorneys’ fees.

Process & Timing

1. Who files: Policyholder (you). Where: Clerk of Superior Court, Civil Division, in the North Carolina county with proper venue. What: Civil Summons and Complaint (standard AOC civil summons) alleging breach of contract and, if supported, unfair and deceptive trade practices. When: Generally within three years for contract and within four years for unfair trade practices; confirm your precise deadline.
2. After service, the insurer answers; discovery follows. Either side may make a Rule 68 offer of judgment; if you reject and win less at trial, you may owe the other side’s post-offer court costs. Many counties require mediation before trial.
3. At judgment, the court adds prejudgment interest as the statute allows and taxes allowable court costs to the prevailing party. Postjudgment interest accrues until paid.

Exceptions & Pitfalls

• If you settle, interest and costs are negotiable and often waived unless expressly included.
• Unfair claim settlement practices are not a standalone private claim; they support an unfair trade practices claim that must be pled and proven.
• Interest start dates differ by claim type; identify the breach date for contract claims and the filing date trigger for tort-based property damage claims.
• Taxable “costs” are limited; they usually do not include your full attorneys’ fees unless a statute authorizes them.
• Rule 68 can shift post-offer costs if you reject an offer and don’t do better at trial.

Talk to a Personal Injury Attorney

If you’re dealing with a reversed insurance payment and delayed coverage decisions, our firm can help you evaluate interest, costs, and any unfair claims issues, and map the fastest path to recovery. Call us today.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.