What Happens If the Person at Fault in an Accident Has No Insurance in North Carolina?

In North Carolina, the at-fault driver is legally responsible for all damages resulting from an accident, which are typically paid through liability insurance. However, North Carolina adheres to a strict pure contributory negligence rule—meaning an injured party cannot recover any damages if they are found even minimally at fault for the accident.

When the at-fault driver lacks insurance, the injured party's Uninsured Motorist (UM) coverage—required under G.S. § 20-279.21—may provide compensation for medical expenses and property damage. Still, the uninsured driver remains personally liable and may be sued for reimbursement. Additionally, they may face criminal penalties such as license revocation, fines, and jail time for failing to carry the required coverage.

Driving without insurance falls under North Carolina traffic violations and infractions, and it carries serious consequences, including civil penalties, registration suspension, and potential court-ordered restitution if found liable in an accident.

Is It Illegal To Drive Without Insurance In North Carolina?

Per G.S. § 20-309, every vehicle must have proof of "continuous financial responsibility" in the form of liability insurance, financial bond, or security deposit. Coverage status is electronically verified and manually provable with a valid insurance card. The state's department of motor vehicles administers various penalties for lapsed insurance:

• A fine of $50, $100, and $150 for first, second, and subsequent violations.
• A 30-day suspension of the offending individual's driver's licence.
• Withdrawal of the vehicle's licence plate.
• Court charges and jail time for more serious violations.

Driving in North Carolina without some form of insurance is a Class 3 misdemeanor.

What Is the Minimum Insurance Requirement in North Carolina?

North Carolina drivers must meet the following requirements per G.S. 20-279.21. The figures in brackets apply to policies renewed or issued after July 1, 2025:

• $30,000 (50,000) for bodily injury to one individual.
• $60,000 ($100,000) for bodily injury to everyone in an accident.
• $25,000 ($50,000) for vehicular and property damage.

Uninsured Motorist and Underinsured Motorist (UIM) coverages feature the same minimum limits.

What To Do After A Car Accident With an Uninsured Driver in North Carolina

Following a motor vehicle wreck in North Carolina, the involved party(ies) should:

• Report

Regardless of the insurance status of the parties involved, any accident that causes injury, death, or damage above $1,000 must be reported to local police per G.S. 20-166.1. The responding officer will then file an accident report, and the individual or their insurer can request a copy.

• Exchange Information

North Carolina law requires the drivers involved in a car accident to exchange name, address, phone number, vehicular information, and proof of insurance. This helps when filing claims against the driver at fault or with an insurance company.

• File a UM Claim

Under G.S. § 20-279.21, UM coverage in North Carolina is mandatory. The individual can contact their policy provider and furnish them with all the relevant information about the incident, including whether the other driver is uninsured.

The North Carolina Administrative Code § 04-0419 mandates that insurance companies promptly investigate and expedite action on fair motor vehicle claims. They will act as the at-fault driver's insurer and dispense the applicable amount after a successful claims assessment.

• Sue for Damages

The no-fault driver retains the right to sue the other party for damages. This may prove challenging in practice if the other driver has no insurance or assets. Most people in this situation end up filing with their own insurer directly.

What Happens If You Have No Insurance But The Other Driver Was At Fault?

As driving without insurance is a class-3 misdemeanor, the uninsured driver in an accident will face legal penalties while retaining their rights to secure claims against the at-fault driver.

Claims

In North Carolina, the at-fault driver's insured status does not affect the legal rights of the uninsured no-fault party. An individual without insurance can still file a third-party claim against the at-fault driver's auto insurance policy or sue the at-fault driver directly without legal restrictions.

Penalties

Concurrently, the faultless driver will be penalized for driving without insurance. They are subject to civil fines, license revocation, and registration suspension. They must also purchase insurance before driving again.

Can I Sue an Uninsured Driver in North Carolina?

Yes. An uninsured driver is personally liable for accident damages in North Carolina. The other party can sue them for personal injury or property damage, but the suit must be filed within three years per G.S. § 1-52. In addition, the suing party must be able to prove that the uninsured driver is 100% at fault for the incident.

North Carolina does not allow claimants to garnish the defendant's wages per G.S. § 1-362. Allowed enforcement methods include liens on non-exempt property per G.S. § 1-234 and writs of execution (G.S. § 1-305, 1-315).

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in North Carolina?

Yes. The victim's auto insurance automatically steps in if the offending driver is uninsured. Victims are covered via the mandatory UM policy under G.S. § 20-279.21 for medical expenses, physical and emotional distress, repair costs, and lost wages.

What Is Uninsured Motorist Coverage in North Carolina?

Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages are mandatory in North Carolina. They protect accident victims where an at-fault party's insurance is unavailable or cannot be collected.

UM coverage is triggered when the other driver has no liability insurance, flees the accident scene, or cannot be identified. It can also be called on when the at-fault driver's insurer lawfully declines coverage or becomes insolvent. UIM coverage comes into play when the responsible driver's policy cannot fully cover the other party's damage costs.

Minimum UM/UIM limits match state minimum liability coverage mandates. However, the state's contributory negligence rules set a high bar for a successful claim.

What If I Don't Have Uninsured Motorist Coverage in North Carolina?

After a motor vehicle accident, victims without insurance coverage can pursue the following options:

File a Civil Lawsuit

The injured party may sue for damages within a strict three-year limit from the time of the accident (G.S. § 1-52). The suit must detail the incident at length, including the police report, the claimant's insurance status, and evidence of zero fault on the claimant's part.

Execute Judgement on the At-Fault Party's Assets

After a judgment is secured against the uninsured at-fault motorist, an automatic lien on their assets comes into effect until they pay off their liabilities to the claimant. The victim may also secure a writ of execution to seize and dispose of the offender's assets per G.S. § 1-315.

Ask the DMV to Suspend the At-Fault Party's License

Per the state's Financial Responsibility Act, the no-fault individual can request the North Carolina Department of Motor Vehicles to suspend the offending driver's license indefinitely until they discharge their financial obligations. An individual can take this route if damages remain unpaid 60 days after a final court judgment. The restrictions can only be lifted on full payment or a court-approved settlement or installment plan.

How Do I Get Compensation from an Uninsured Driver in North Carolina?

The victim in a car accident may sue the at-fault person directly or rely on their UM coverage. If it is the latter, their insurance company pays for the damages and then deals directly with the uninsured driver to recover the payout.

If the no-fault driver intends to claim directly from the other party, they may file a complaint in a small claims court (for $10,000 or less in damages) or a district/superior court. Filing with the clerk of court requires $96 in Small Claims and $200 at a superior court, along with a small fee to serve court summons on the other party. The offending driver must provide a formal response within 30 days, per the North Carolina Rule of Civil Procedure 12.

Once the defendant formally responds, the case proceeds to discovery and then to settlement or trial. If they do not respond within the stipulated timeframe, the court typically upholds the complaint via a default judgment. A successful claimant can enforce the judgment through a lien, writ of execution, or court-approved settlement.

How Much Can You Recover From an Uninsured At-Fault Driver in North Carolina?

North Carolina law places no cap on allowable claim limits in accident claims. This applies to both economic damages (lost wages, car damage, medical bills) and non-economic ones (emotional distress, physical pain, scars).

Small Claims Court typically offers faster resolutions for damage amounts up to $10,000. For claims between that figure and $25,000, district courts provide a middle-of-the-road option. The Superior Court in North Carolina handles claims for larger sums. However, the precise amount a victim can recover ultimately depends on the other party's ability to pay after calculating asset exemptions. Per G.S. § 24-5, all court-validated claims start accruing 8% interest from the inception of the lawsuit (G.S. § 24-1).

How To Find Out If the At-Fault Driver Has Insurance in North Carolina

An easy way to verify a driver's insurance status is to directly ask them at the scene for their insurance company's name and policy number. Failing that, an individual can get a copy of the crash report form DMV-349 filed by law enforcement. It has a section for the insurance information of all parties in the accident per G.S. § 20-166.1.

After leaving the incident scene, a motorist can submit an insurance information request as a party to the relevant accident under G.S. § 20-43.1(e). The Driver Protection Request Form (MVR-605A) can be downloaded from the NCDMV website and sent along with a check for the stipulated processing fee via mail-in to the following address:

N.C. Division of Motor Vehicles
Driver License Records
3113 Mail Service Center
Raleigh, NC 27697-3113

Finally, if the case moves to court, the defendant is legally obligated to disclose all relevant requested information, including their insurance information, under oath.

Are Accidents Public Record in North Carolina?

Yes. According to the North Carolina Public Records Act, government records regarding an accident are available at minimal cost. However, G.S. 20-43.1 prohibits the dispersal of personal identifying data except under specific circumstances. The net result is that parties to a motor accident (including direct parties, car owners, passengers, pedestrians, attorneys, and insurance companies) may obtain the full incident report, while the rest of the public gets the redacted version. Eligible inquirers can request a crash report from the records division of the local police or the NCDMV.

Can You Go to Jail for Causing an Accident Without Insurance in North Carolina?

Yes. Driving with no insurance is illegal in North Carolina and typically carries a fine and NCDMV penalties (license and registration suspensions). Jail time is possible up to a maximum of 20 days per G.S. § 15A-1340.23.

The potential jail ramifications scale up if the accident results in a criminal offense, or the prosecution cites the lack of insurance as an aggravating factor.

Can You Settle With an Uninsured Driver Out of Court in North Carolina?

Yes. North Carolina allows parties in any accident claim to settle out of court even if one of them is at fault or uninsured. It works like any private arrangement under contract law. However, this action typically waives the victim's rights to claim Uninsured Motorist (UM) compensation from their insurance provider.

Can I Get Compensation If I Was Partially at Fault?

No. North Carolina runs a pure contributory negligence system. Hence, where there is even 1% fault for a motor vehicle accident, the victim is legally barred from getting compensation should they seek one. A lawsuit with partial fault involved can only succeed if the claimant can show that the defendant had the time and the means to avoid the accident. This is known as the "last clear chance" rule.