Short Answer

In North Carolina, you can sue the at-fault driver in civil court, but collecting money from an uninsured, asset-poor driver is often difficult. The practical path is to make an uninsured motorist (UM) claim under any auto policy that covers you, including a household member’s policy, and notify that insurer during the lawsuit. If no UM coverage applies and the driver has no assets, recovery may be limited.

Understanding the Problem

You want to know how to recover your losses when the other driver admits fault but has no insurance. In North Carolina, the key decision is whether to sue the driver directly, pursue benefits through uninsured motorist coverage, or both. Here, you do not have your own auto insurance, so the next question is whether a household member’s policy covers you. That answer heavily influences your strategy and your likelihood of recovery.

Apply the Law

North Carolina allows you to bring a negligence lawsuit against the at-fault driver in civil court. At the same time, state law requires auto policies issued in North Carolina to include uninsured motorist coverage at least at the minimum limits. UM coverage can extend to people who live in the same household as a named insured, depending on policy terms. The main forum is the county civil trial court (District Court for lower amounts; Superior Court for higher amounts). North Carolina generally gives three years from the crash to file a negligence lawsuit; policy notice deadlines for UM claims can be much shorter and are stated in the policy.

Key Requirements

• Fault and uninsured status: The other driver’s negligence caused your losses and they have no liability insurance.
• Covered person under a UM policy: You are insured under a UM policy (your own or a household member’s policy that covers resident relatives or occupants).
• Timely notice to the UM insurer: Give written notice to the UM insurer promptly as the policy requires and cooperate with its investigation.
• File suit on time: Start a negligence lawsuit within North Carolina’s general limitations period for personal injury/property damage.
• Proper service: Serve the uninsured driver and provide required notice/service to the UM insurer so it can participate in the defense.
• Proof of damages: Document medical treatment, wage loss, property damage, and other compensable harms.

What the Statutes Say

• North Carolina Gen. Stat. § 20-279.21 (Motor vehicle policies; UM/UIM) - sets required uninsured motorist coverage and how claims interface with lawsuits.
• North Carolina Gen. Stat. § 20-309 (Financial responsibility required) - requires liability insurance on registered vehicles.

Analysis

Apply the Rule to the Facts: You have no personal auto policy, and the at-fault driver appears uninsured. You can still sue the driver for negligence, but collection may be difficult if they lack assets. The practical next step is to review every auto policy in your household; if a policy covers you as a resident relative or occupant, you can present a UM claim and notify that insurer if you file suit. If no UM coverage exists and the driver has no assets, recovery may be limited despite a judgment.

Process & Timing

1. Who files: The injured person (plaintiff). Where: District Court or Superior Court in the county where the defendant resides or where the crash occurred. What: File a Civil Summons (AOC-CV-100) and a Complaint; if pursuing UM benefits, send written notice to the UM insurer and follow any policy service requirements. When: Generally file within three years of the crash; give the UM insurer prompt written notice per the policy.
2. Serve the uninsured driver and provide required notice/service to any UM insurer. Expect 30 days for the defendant’s answer after service; insurers often investigate during this period.
3. Litigate or negotiate. Outcomes include settlement funded by UM coverage, a court judgment against the defendant, or both. If you obtain a judgment, collection options depend on the defendant’s assets and North Carolina exemption laws.

Exceptions & Pitfalls

• Household coverage turns on policy terms like “resident relative” and “you”/“insured.” Do not assume you are uncovered—request the full policy and declarations page.
• Do not sign any release or settlement with the at-fault driver without clearing it with the UM insurer; doing so can jeopardize UM benefits.
• Service errors can derail UM claims. Follow the policy and North Carolina procedure to notify the UM insurer so it can defend.
• A default judgment against an uninsured driver does not ensure payment. Collection depends on assets and exemptions; wage garnishment is very limited in North Carolina.
• Look for other coverage: the vehicle owner’s policy or an employer’s policy if the driver was working at the time.

Talk to a Personal Injury Attorney

If you're dealing with an uninsured at-fault driver and need to evaluate UM coverage, lawsuit options, and timelines, 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.