Short Answer

In North Carolina, enforcing subrogation against an uninsured at-fault driver means the insurer (or its insured, on the insurer’s behalf) pursues the driver for what the insurer paid. The usual path is: send a written demand with proof of payment, then file a civil lawsuit if unpaid, obtain a judgment, and use post-judgment tools (liens, execution, and DMV license suspension for unsatisfied motor-vehicle judgments). Medical provider liens tied to any personal injury recovery must be honored before final disbursement.

Understanding the Problem

In North Carolina, how do you enforce an insurer’s subrogation claim against an uninsured driver who caused the crash, after the personal injury claim has already been settled? Here, the at-fault driver had no liability insurance, and medical payments coverage paid the clients’ treatment on the accident date.

Apply the Law

North Carolina allows an insurer that paid benefits (like medical payments or uninsured motorist benefits) to “step into the shoes” of its insured and pursue the at-fault driver for the same claim the insured could have brought. The subrogee must prove the at-fault driver’s liability and the amount paid. If the personal injury claim resolved via uninsured motorist coverage, the paying insurer typically acquires contract-based subrogation rights to pursue the tortfeasor. Medical provider liens attach to any personal injury recovery and must be resolved from the settlement before distribution. Civil actions are filed in District or Superior Court based on the amount sought, and service is made under the Rules of Civil Procedure. The general limitations period for tort claims is three years from the injury; subrogation based on the underlying tort follows that window.

Key Requirements

• Standing and proof: The subrogated party enforces the insured’s tort claim, showing fault, causation, and the paid amounts.
• Parties and pleadings: File a civil action in the insured’s name or join the insured so all materially interested parties are before the court and claims aren’t split.
• Notice and service: Send a pre-suit demand with proof of payments; if unpaid, file and serve a civil summons and complaint under Rule 4.
• Medical liens: Before distributing any injury settlement, honor statutory medical liens and the cap on how much may be taken from the net recovery.
• Enforcement: If you obtain a judgment, docket it to create a lien, conduct post-judgment discovery, levy by writ of execution, and use DMV suspension for unsatisfied motor-vehicle judgments.

What the Statutes Say

• North Carolina Gen. Stat. § 44-49 (Medical provider liens) - Creates a lien on personal injury recoveries for reasonable medical charges.
• North Carolina Gen. Stat. § 44-50 (Enforcement and distribution) - Governs enforcement of medical liens and caps taking at a share of the net recovery.
• North Carolina Gen. Stat. § 20-279.13 (License suspension for unsatisfied motor-vehicle judgments) - Permits DMV license suspension when a crash-related judgment remains unpaid.
• North Carolina Gen. Stat. § 1-52 (Three-year limitations period) - Sets the general three-year deadline that applies to underlying tort claims.

Analysis

Apply the Rule to the Facts: Because the at-fault driver was uninsured, your client’s med-pay (and likely UM) benefits covered medical care on the accident date. Those payments give the insurer a subrogation claim equal to what it paid. After the personal injury claim settled, you should (1) resolve any medical provider liens from the settlement as the statutes require, and (2) pursue the uninsured driver for reimbursement through demand and, if needed, a civil action filed in the insured’s name or with the insured joined.

Process & Timing

1. Who files: The insurer (subrogee) or the insured for the insurer’s use. Where: Civil action in North Carolina District or Superior Court (based on amount). What: Demand letter with proof of payments; then a complaint and AOC-CV-100 Civil Summons. When: Generally within three years of the injury to track the underlying tort deadline.
2. Serve the uninsured driver under Rule 4. If no answer within 30 days, seek default and a money judgment. If contested, prove liability and paid damages (medical bills, UM/med-pay disbursements) at trial.
3. Docket the judgment to create a lien, conduct post-judgment discovery, request a writ of execution, and if unpaid, certify the unsatisfied motor-vehicle judgment to DMV for license suspension. Close the file after collection and lien resolution.

Exceptions & Pitfalls

• Releases: A release in the personal injury settlement can impair subrogation if it extinguishes the tort claim; preserve the insurer’s rights in the settlement documents.
• Necessary parties: Join the insured so all parties with material interests are before the court and the claim isn’t split.
• Medical liens: Providers have statutory liens and a capped share of the net recovery; failure to honor them can delay disbursement and create disputes.
• Service and default: Before default, courts require a Servicemembers Civil Relief Act affidavit; improper service or missing affidavits can derail judgment.
• Asset realities: Uninsured drivers may be judgment-proof; consider payment plans, wage garnishment limits, and DMV suspension leverage.

Talk to a Personal Injury Attorney

If you're dealing with an uninsured at-fault driver and need to enforce subrogation or resolve medical liens, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at 919-341-7055.

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.