What Coverage Questions Usually Mean
When an insurer says there was a “lapse,” they are usually saying the policy was not in force on the crash date—often because of nonpayment, a cancellation, or a gap between policy periods. If there is no active policy on the incident date, the insurer typically treats the claim as uncovered under that policy. The key issue becomes verifying the exact effective dates and then identifying any other lawful way to pay medical bills and other losses tied to the wreck.
Common Potential Sources of Payment (High-Level)
- At-fault driver’s liability coverage: If another driver caused the crash, their liability coverage is often the primary path for an injury claim.
- Uninsured/underinsured motorist (UM/UIM) coverage: North Carolina motor vehicle liability policies generally include UM coverage and also address UIM coverage requirements. These coverages can matter when the at-fault driver has no insurance, denies coverage, or does not have enough coverage for the losses claimed. See N.C. Gen. Stat. § 20-279.21.
- Health insurance as an immediate payer: Even when auto coverage is disputed, health insurance may pay medical treatment bills (subject to plan rules). This does not decide fault; it is often just a way to keep care moving while liability is investigated.
- Out-of-pocket / payment plans: If no coverage applies, some people end up paying directly while a liability claim against the at-fault party is pursued.
Information to Gather
- Policy documents and dates: Declarations pages, cancellation/nonrenewal notices, reinstatement notices, and proof of payment showing when coverage ended and restarted.
- Written confirmation of the denial: A letter or email stating the reason for denial and the exact dates the insurer says were uncovered.
- Crash basics: Date/time, general location (Durham area is fine), vehicles involved, and any witness contact info (no identifying details in public postings).
- Injury and expense snapshot: A simple timeline of treatment dates, time missed from work, and major out-of-pocket costs.
Common Coverage Disputes and Practical Next Steps
- Confirm the “lapse” is accurate: Sometimes the issue is a reporting mismatch, a payment posting problem, or confusion about the effective date. In North Carolina, insurers also report policy terminations and reinstatements to the DMV, and DMV action can follow a reported lapse. See N.C. Gen. Stat. § 20-309.2 and N.C. Gen. Stat. § 20-311.
- Separate “your coverage” from “their fault”: A lapse on your policy can affect whether your insurer pays under that policy, but it does not automatically decide who caused the crash.
- Identify every potentially applicable policy: Depending on the situation, there may be other policies in play (for example, the at-fault driver’s policy). A lawyer can help spot these possibilities without guessing at policy terms.
- Protect the injury claim timeline: Even when insurance coverage is disputed, the legal deadline to file a lawsuit for negligence generally does not pause. In many North Carolina personal injury cases, the standard statute of limitations is three years. See N.C. Gen. Stat. § 1-52.
How This Applies
Apply to your facts: Here, your law firm attempted to open a claim, and the insurer responded that the policy showed a lapse on the incident date with coverage beginning later. The immediate practical step is to pin down the coverage timeline in writing (end date, restart date, and the reason the insurer says there was no coverage) and then evaluate other paths to recovery—most commonly a claim against the at-fault driver and, if applicable, UM/UIM options under North Carolina law.
What the Statutes Say (Optional)
- N.C. Gen. Stat. § 20-279.21 (UM/UIM requirements) – Explains key uninsured/underinsured motorist coverage requirements in North Carolina motor vehicle liability policies.
- N.C. Gen. Stat. § 20-311 (DMV action after lapse notice) – Describes DMV notice and potential penalties/registration consequences when a lapse in financial responsibility is reported.
Conclusion
If your crash happened during a true lapse, your insurer may deny coverage under that policy—but you may still have a viable injury claim through the at-fault driver and other lawful coverage paths. The most important move is to document the coverage dates and denial reason, then protect your claim timeline while the coverage issue is investigated. One practical next step is to gather your policy documents and denial letter and speak with a licensed North Carolina attorney promptly.
