Short Answer

In North Carolina, you can negotiate for economic damages (medical bills, future medical care, lost income, property damage, and other out-of-pocket costs) and non-economic damages (pain, suffering, scarring, and loss of enjoyment). Punitive damages are possible only for aggravated conduct like fraud or willful and wanton behavior. Insurers often focus on medical charges that are reasonable, necessary, and well-documented, and your final payout will be reduced by attorney fees and any valid liens.

Understanding the Problem

In North Carolina personal injury negotiations, what can you ask the insurance company to pay? You, the injured person, are negotiating a settlement with a liability insurer after a crash. The key decision is which categories of damages to include now, before any lawsuit, given that the insurer’s first lump-sum offer is below your medical costs and pain and suffering.

Apply the Law

North Carolina allows recovery of compensatory damages to make you whole: economic losses (medical treatment already incurred, reasonably expected future medical care, wage loss and reduced earning capacity, property damage, and other necessary out-of-pocket costs) and non-economic losses (pain, suffering, inconvenience, scarring, and loss of enjoyment of life). Punitive damages are available only if the at-fault party acted with fraud, malice, or willful or wanton conduct. Negotiations are informal and occur with the insurer’s claims department; if you cannot agree, you can file in civil court. A core timing rule is the general three-year statute of limitations for personal injury.

Key Requirements

• Causation: Each claimed expense or harm must be caused by the accident, not unrelated conditions or events.
• Reasonable and necessary: Medical care and other costs should be medically necessary and reasonably priced for the area and type of service.
• Documentation: Use records, bills, pay stubs, employer letters, repair estimates, and receipts to prove amounts.
• No double counting: Do not claim the same loss twice; list each item once and be consistent across categories.
• Future losses must be supported: Future treatment or reduced earning capacity requires credible support (e.g., provider opinions or work restrictions).
• Limited punitive damages: Only when evidence shows aggravated misconduct; caps may apply.

What the Statutes Say

• N.C. Gen. Stat. § 1-52 (General three-year limit) - Most personal injury claims must be filed within three years.
• N.C. Gen. Stat. § 1D-15 (Punitive damages standard) - Requires fraud, malice, or willful or wanton conduct.
• N.C. Gen. Stat. § 1D-25 (Punitive damages cap) - Limits punitive damages to the greater of three times compensatory damages or $250,000.
• N.C. Gen. Stat. § 8-58.1 (Medical bills as evidence) - Itemized medical bills can be used to show that charges are reasonable and necessary.

Analysis

Apply the Rule to the Facts: Because you have documented medical expenses, include those tied to the crash and any recommended future care supported by your providers. Add non-economic damages for pain and suffering and any scarring or activity limits. Your attorney’s strategy of starting high and adjusting is consistent with how insurers evaluate documented losses. Set your minimum figure after accounting for attorney fees and any medical or benefit liens that must be repaid from the settlement.

Process & Timing

1. Who files: The injured person (through counsel). Where: The at-fault party’s insurer claims department. What: A demand package (cover letter; medical records and bills; wage proof; photos; repair estimates; receipts). When: Typically after treatment ends or you reach maximum medical improvement, and before the three-year statute runs.
2. The insurer reviews and responds with questions or an offer; negotiations usually involve several rounds of counteroffers. Timeframes vary by carrier and complexity.
3. If settled, you sign a release; the attorney resolves valid liens and provides a closing statement; funds are disbursed after lien resolution.

Exceptions & Pitfalls

• Contributory negligence: If you are even slightly at fault, recovery can be barred; this affects negotiating leverage.
• Gaps or inconsistent treatment: These invite challenges to “necessity” and can reduce offers; keep treatment consistent and documented.
• Unsupported future losses: Future care and diminished earning capacity need medical or vocational support.
• Release language: Broad releases can waive claims (including UM/UIM); review carefully before signing.
• Liens and reimbursements: Medical providers, health plans, Medicare/Medicaid, or workers’ comp may require repayment from the settlement; unresolved liens can delay payment.
• Recorded statements and authorizations: Broad medical authorizations or statements can be used against you; limit disclosures to what is necessary.

Talk to a Personal Injury Attorney

If you're dealing with a low insurance offer after a crash and need to understand what damages you can claim and how to document them, our firm has experienced attorneys who can help you understand your options and timelines. Reach out 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.