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

Being involved in a car accident is stressful, but the situation becomes even more complicated when the at-fault driver doesn’t have insurance. In North Carolina, this scenario can result in serious financial and legal consequences for both parties. Understanding your rights and options is crucial to protecting yourself if you’re hit by an uninsured driver—or if you’re the one at fault without coverage.

If you or a loved one has been injured in an accident caused by an uninsured motorist in North Carolina, don’t navigate the legal process alone. Contact the experienced attorneys at Edwards Kirby for a free consultation and find out how we can help you seek the compensation you deserve.

Understanding the Consequences for Uninsured At-Fault Drivers

Driving without insurance in North Carolina is not only illegal—it can also have far-reaching consequences. Some individuals take the risk and drive uninsured due to financial hardship, lack of awareness, or mistaken assumptions about their coverage. For example, some drivers may be unable to afford monthly premiums, while others may wrongly believe their policy is still active or think they won’t get caught.

Unfortunately, being an uninsured at-fault driver can lead to severe legal and financial repercussions.

These individuals may be held personally responsible for any property damage or medical expenses they cause and could face lawsuits from injured parties. In addition, North Carolina imposes strict penalties for driving uninsured, including fines, license suspension, and the requirement to file proof of insurance (SR-22) for a set period. The result can be long-term impacts on driving privileges, credit, and overall financial stability.

Legal Requirement for Liability Insurance in NC

North Carolina law mandates that all drivers carry minimum liability insurance to operate a vehicle legally. These minimums include:

• $30,000 for bodily injury per person,
• $60,000 for total bodily injury per accident,
• $25,000 for property damage.

Failure to carry this minimum coverage means that a driver is operating illegally, and if they cause an accident, they may be held personally liable for all resulting damages—both medical and property-related.

Financial Penalties and Civil Penalties

Uninsured drivers can face steep civil penalties. North Carolina imposes a $50 fine for a first lapse in coverage, and the reinstatement fee is also $50. Repeated offenses carry even higher fines. In addition to these financial penalties, the Department of Motor Vehicles may suspend the driver’s license and vehicle registration, further compounding the consequences.

Classification as High-Risk Driver

An uninsured driver who causes an accident may be labeled a “high-risk” driver. This classification can significantly impact future insurance premiums, often resulting in substantially higher rates or even difficulty finding an insurer willing to provide coverage. Being labeled high-risk can also limit eligibility for certain types of coverage or discounts.

Personal Injury Claims and Legal Options in North Carolina

Victims of accidents caused by uninsured drivers still have options for recovery. If you carry uninsured motorist (UM) coverage—which is required as part of liability coverage in North Carolina—you can file a claim with your own insurance company to recover damages for medical expenses, lost wages, and pain and suffering. If damages exceed the policy limits or if UM coverage is not available, you may also pursue legal action directly against the at-fault driver to seek compensation.

Filing A Claim Against An Uninsured Driver in North Carolina

Filing a claim against an uninsured driver can be more complex than a typical accident claim. You may need to work closely with your insurance provider and provide detailed documentation of the accident, injuries, and financial losses. In cases where insurance coverage isn’t sufficient, you may need to file a civil lawsuit to try and recover damages directly from the at-fault driver—though collecting payment can be difficult if the driver lacks financial resources.

Explore Legal Options with Expert Lawyers in Our North Carolina Offices at Edwards Kirby

Navigating the aftermath of an accident with an uninsured driver can be overwhelming, especially when you’re dealing with medical bills, vehicle damage, and uncertainty about who will cover your losses. At Edwards Kirby, our experienced North Carolina attorneys understand the challenges you’re facing and are here to help you make informed decisions about your next steps.

We work closely with clients to evaluate the specifics of each case, explain how uninsured and underinsured motorist coverage applies, and identify all potential avenues for compensation. If your insurance company denies your claim or offers less than what you’re entitled to, we can advocate on your behalf and help you dispute the decision. If legal action becomes necessary, we are prepared to represent you aggressively in court to hold negligent drivers accountable for their actions.

Whether you’re just starting the claims process or you’re deep in a legal dispute, our dedicated legal team is here to support you with personalized guidance, strategic advocacy, and a deep commitment to securing the best possible outcome for your case.