How Car Accident Compensation Works in North Carolina

North Carolina is a “fault” or “tort” state for car accidents. That means that the driver at fault is the one who pays damages. After a crash, car accident victims typically file separate insurance claims for bodily injury and property damage. 

North Carolina applies the “pure contributory negligence” rule to car accident compensation. This law is notoriously hard on injured car accident victims. Only a handful of states still use this all-or-nothing approach to injury claims. Under the pure contributory negligence law, if an injured victim contributed at all to causing the accident, they cannot file a claim for damages. Even if their actions were a factor in only 1 percent of the crash, they cannot file a claim.

Insurance companies take advantage of contributory negligence to deny car accident claims. An experienced North Carolina car accident lawyer can push back against attempts to blame you for the crash and can negotiate for a substantial settlement that meets your needs.

Every state sets its own car insurance requirements. North Carolina requires drivers to purchase and maintain car accident liability insurance. The state’s minimum coverage requirement is a 30/60/25 plan. That’s $30,000 per person per crash, $60,000 total per crash, and $25,000 for property damage, Uninsured/Underinsured Motorist coverage is also required. 

• Bodily Injury (BI) pays for the injuries resulting from an accident you cause. In addition to medical bills, this insurance compensates others for pain and suffering and economic damages like lost wages.   
• Property Damage (PD) liability pays for damage to other people’s vehicles after an accident you cause.
• Uninsured Motorist (UM) pays for your bodily injuries and property damage if you are involved in an accident caused by an uninsured driver. 
• Underinsured Motorist (UIM) pays for your bodily injuries only. UIM is not required for drivers that do not exceed the state's minimum 30/60/25 insurance requirements.

Including:

• Medical Payment (Med Pay MPC) pays for your medical expenses in a car accident regardless of fault.
• Collision pays to repair physical damage or replace your vehicle after an accident. Most lenders require you to carry collision coverage if you have a car loan. 
• Comprehensive pays for physical damage to your vehicle that occurred due to things other than a collision. Not all events are covered, but things like vandalism, fire, and theft typically are. Lenders may require drivers to purchase this, as well.
• Gap (loan/lease payoff) can be useful if you have a loan on your vehicle. It helps pay for the difference between your vehicle’s value and how is still owed on the loan.  
• Extended Transportation Expenses (Rental reimbursement) pays for limited transportation expenses after a crash disables your vehicle.
• Towing and Labor (Roadside Assistance) pays for expenses incurred when a vehicle is disabled on the roadway. There is typically a cap on these benefits. 
• Rented Vehicles covers you or a family member who rents a vehicle daily for less than 22 consecutive days.
• Coverage for Damage to Your Auto (custom equipment) raises the limit for compensation of damaged custom property like audio, visual, and data electronic equipment, which would normally not be covered by a standard collision or liability policy.   
• Automobile Death Indemnity, Specific Disability, and Total Disability Benefits provide compensation for death, dismemberment, specific disabilities, and total disability that results from a crash.

Yes, If the insurance company rejects your claim or refuses to make a substantial settlement offer, then filing a lawsuit may be a good option for results.

Typically, you have 3 years from the date of the accident to file a personal injury or car accident lawsuit. If the crash was fatal, the statute of limitations is 2 years from the date of death. Claims and lawsuits that are not started before the statute of limitations expire can be denied. 

There are many factors that affect the damages you can collect, including fault, injury severity, lost wages, as well as pain and suffering. The two main types of damages you can collect are economic and non-economic. 

• Economic damages are losses with defined value, like medical bills, ambulance fees, physical therapy, lost wages, and vehicle damage. 
• Non-economic damages are losses without a stated value like emotional anguish, pain and suffering, and loss of consortium (for a spouse) or guidance (for a child). 

In rare cases, punitive damages are available to victims of outrageous negligence like drunk drivers and red-light runners, wantonness, or fraud. 

An experienced North Carolina car accident lawyer knows how to calculate your losses at the highest value and aggressively negotiate for maximum compensation.

What if the other driver doesn’t have insurance?

Drivers in North Carolina are required to carry UM (uninsured motorist coverage) and most drivers are required to purchase UIM (underinsured coverage), too. Therefore, if you are hit by such a motorist, or are the victim of a hit-and-run, you can file a claim with your own insurance provider under your UM or UIM policy.

Keep in mind that when you file a UM claim you will still need to fight for the compensation you deserve. No matter who is paying an insurance adjuster, it is always their job to reject claims and cut payouts to the absolute minimum. An experienced North Carolina car accident lawyer knows this and is ready for battle. They typically work for a contingency fee, which means there is no out-of-pocket expense for their services. And if they don’t win, you don’t pay. If you were injured in a North Carolina car accident, contact a lawyer for a free case consultation today.