What happens if the other driver has no auto insurance in my accident case?: North Carolina
What happens if the other driver has no auto insurance in my accident case? — North Carolina
Short Answer
In North Carolina, if the at-fault driver is uninsured, you can usually pursue compensation under your own policy’s uninsured motorist (UM) coverage for injuries and vehicle damage, up to your policy limits. You may also use Medical Payments (MedPay) and collision coverage regardless of fault. You can sue the at-fault driver personally, but collecting can be difficult; if you file suit, you should also notify and serve your UM insurer so it is bound by the result. Strict deadlines apply, so act quickly.
How North Carolina Law Applies
North Carolina’s Financial Responsibility laws require auto policies issued in the state to include uninsured motorist (UM) coverage. UM steps in when the at-fault driver has no liability insurance or in certain hit-and-run situations. Your UM insurer stands in the shoes of the uninsured driver and pays proven damages up to your UM limits. If you were hurt, MedPay on your policy can also help pay medical bills regardless of fault. You can also sue the at-fault driver directly, but many uninsured drivers lack assets, so your practical recovery often comes from UM coverage.
If you sue the uninsured driver, North Carolina law gives your UM insurer the right to participate in the defense and to be bound by the outcome if properly notified and served. In hit-and-run claims where the other driver cannot be identified, UM may still apply, but insurers often require prompt police reporting and additional proof. Deadlines to file suit are generally three years for injury and property damage, and two years for wrongful death.
Key Requirements
Prove the other driver was at fault and uninsured (police report, DMV/insurer verification, or sworn statements).
Have UM coverage on a policy that applies to you (the vehicle you occupied, your own policy, or a household member’s policy if you qualify as a resident relative).
Show your injuries and losses (medical records, bills, wage loss, repair/replacement estimates).
For hit-and-run: promptly report to police and your insurer and provide corroborating evidence as your policy requires.
If you file a lawsuit against the uninsured driver, serve your UM insurer with the suit so it is bound by any judgment.
Process & Timing
Call 911 and get medical care. Ask for the crash report number and gather photos and witness info.
Notify your insurer quickly. Open claims for UM, MedPay, and collision (for vehicle repairs) if applicable.
Document damages. Keep medical records, bills, wage proof, and repair estimates. Track all out-of-pocket costs.
Submit a UM demand. After treatment stabilizes, present a settlement demand to your UM insurer with evidence of fault and damages.
Negotiate. Many UM claims settle. If not, your policy may require arbitration or allow you to file a lawsuit against the at-fault driver. If you sue, also serve your UM insurer so it can participate and be bound.
Mind the deadlines. In most injury and property-damage cases, you have three years to file; wrongful death has a two-year deadline. Contractual UM deadlines (notice, proof of loss) may be shorter—follow your policy terms.
Judgment and collection. If you win a judgment against an uninsured driver and it’s not paid, North Carolina law allows steps that can include driver’s license suspension for failure to satisfy the judgment. Your UM benefits, however, typically resolve without you needing to chase the other driver’s assets.
What the Statutes Say
N.C. Gen. Stat. § 20-279.21 — Financial Responsibility; uninsured and underinsured motorist coverage requirements.
N.C. Gen. Stat. § 1-52 — Three-year statute of limitations for most injury and property-damage claims.
Waiting too long to notify your insurer or to file suit can void coverage or miss the statute of limitations.
Hit-and-run claims have extra proof and prompt-reporting requirements—follow your policy closely.
Do not sign releases or cash checks that reference “full and final settlement” without confirming how it affects your UM claim.
Assuming the uninsured driver will pay later. Many have few assets; your UM claim is often the practical path.
Ignoring liens. Medical providers and certain programs can assert liens; North Carolina law caps many provider liens, but they still must be addressed before disbursement.
Giving recorded statements or broad medical authorizations without understanding your rights can harm your claim. Provide what your policy requires, but be careful and prepared.
Helpful Hints
Ask your insurer for your policy’s Declarations Page to confirm UM, MedPay, and collision limits.
Report hit-and-run crashes to police immediately and get the report number; tell your insurer promptly.
Preserve evidence early: photos, dashcam footage, witness names, repair invoices, and all medical records and bills.
Track mileage to medical visits and time missed from work; these are often recoverable.
If you file suit against the uninsured driver, serve your UM carrier with the summons and complaint so it is bound by the outcome.
Keep communications professional and in writing when possible; save copies of everything you send or receive.
Sources & References
North Carolina General Statutes, official site: N.C. Gen. Stat. § 20-279.21 (Financial Responsibility; UM/UIM), § 20-279.15 (judgment/suspension), § 1-52 (limitations—three years), § 1-53 (limitations—two years), §§ 44-49 & 44-50 (medical liens).
Disclaimer: This article is general information about North Carolina law, not legal advice. Reading it does not create an attorney-client relationship.
Talk to a Personal Injury Attorney
If you’re dealing with an uninsured driver or hit-and-run claim in North Carolina, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-313-2737.
