Short Answer

In North Carolina, you generally cannot force a city’s insurer to review your claim directly. Your leverage is to sue the city (not the insurer); if the city has liability insurance or participates in a risk pool, it has waived governmental immunity to the extent of that coverage, and the insurer will step in. You may also file a complaint with the Department of Insurance if a licensed insurer ignores you, but some municipal risk pools are not DOI-regulated. If your damages fit, small claims is an option.

Understanding the Problem

You want to know how, in North Carolina, you can make a city’s insurer evaluate your property damage claim after your car hit an unmarked pothole and you already sent formal notices without any response. The decision point is whether you can compel action without a lawsuit or need to sue the municipality so its insurer must respond. The role is a private claimant; the action is pursuing payment for vehicle diminished value and incidental lost wages.

Apply the Law

Under North Carolina law, municipalities are generally immune from negligence suits unless they waive immunity by purchasing liability insurance or joining a risk pool. That waiver applies only up to the coverage limits and terms. You cannot sue the insurer directly; you sue the city. Proper service of the lawsuit on the city triggers defense obligations and, typically, insurer involvement. If your total damages are within the small claims limit, you may file in magistrate’s court. The general deadline to sue for property damage negligence claims is three years from the incident. The main forum is District/Superior Court (or Small Claims/Magistrate’s Court within its monetary limit) in the county where the city is located.

Key Requirements

• Waiver of immunity by insurance: A city’s liability insurance or risk pool participation waives governmental immunity only to the extent of coverage.
• Sue the municipality, not the insurer: File a civil action against the city; the insurer responds through defense counsel if coverage applies.
• Proper service on the city: Serve the summons and complaint on the mayor, city manager, city clerk, or city attorney under the civil rules.
• Prove notice and negligence: For a road defect like a pothole, you’ll need evidence the city knew or should have known about it and failed to fix it within a reasonable time.
• Jurisdictional amount: Use Small Claims if your total damages are within its monetary cap; otherwise file in District/Superior Court.
• Three-year limitations period: Most property damage negligence claims must be filed within three years of the crash.

What the Statutes Say

• North Carolina Gen. Stat. § 160A-485 (City liability insurance; waiver of immunity) - Cities waive governmental immunity to the extent of liability insurance or risk pool coverage.
• North Carolina Gen. Stat. § 1A‑1, Rule 4 (Service of process) - Service on a city is accomplished by serving specified city officials.
• North Carolina Gen. Stat. § 7A‑210 (Small claims; magistrate’s jurisdiction) - Establishes small claims jurisdiction and monetary limits.
• North Carolina Gen. Stat. § 58‑63‑15(11) (Unfair claim settlement practices) - Lists prohibited insurer conduct; DOI can investigate licensed insurers.

Analysis

Apply the Rule to the Facts: You struck an unmarked pothole on a city road. If the city has liability insurance or a risk pool, immunity is waived to that coverage. Because letters to the risk manager and insurer went unanswered, the practical next step is a lawsuit against the city, properly served on a designated city official, which will require a response (typically through insurer-retained counsel). Your claim for diminished value and reasonable lost wages is within the scope of property damage, but recovery still requires proof the city had actual or constructive notice of the pothole and failed to fix it in a reasonable time.

Process & Timing

1. Who files: You (the vehicle owner). Where: File in Small Claims (Magistrate’s Court) if your total damages are within its cap, otherwise in District/Superior Court in the county where the city is located. What: Use the standard North Carolina AOC civil summons and complaint forms (or small claims forms) from the N.C. Judicial Branch website. When: File within three years of the crash.
2. Serve the city under the civil rules by delivering the summons and complaint to the mayor, city manager, city clerk, or city attorney. After service, the city typically has 30 days to respond; its insurer usually assigns defense counsel at that point.
3. Exchange evidence (photos, police report, repair invoices, maintenance records obtained via public records request), negotiate, and, if needed, proceed to a hearing or trial. A judgment is entered; if you prevail, the insurer pays up to coverage limits.

Exceptions & Pitfalls

• Immunity not waived: If the city lacks applicable insurance or a risk pool, governmental immunity may bar the claim.
• Wrong target or service errors: Don’t sue the insurer directly; sue and properly serve the city on the correct official. Bad service can get your case dismissed.
• No notice of defect: Without proof the city knew or should have known about the pothole in time to fix it, the negligence claim can fail.
• Contributory negligence: If you were even slightly negligent (e.g., unreasonable speed or inattention), it may bar recovery.
• DOI limits: Filing a DOI complaint can prod a licensed insurer, but some municipal risk pools are not regulated by DOI.
• Damages scope: Diminished value and reasonable lost wages tied to repairs may be challenged; document them with appraisals, invoices, and time records.

Talk to a Personal Injury Attorney

If you're dealing with a city that won’t respond to a pothole damage claim, 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.