North Carolina is an at-fault state. If you cause a car accident here, you may be held legally liable for the resulting property damage and bodily injuries.  

An at-fault driver in North Carolina may be held responsible for the following:

• Costs of repairing or replacing third-party vehicles damaged in the accident

• Costs of medical treatments for third-party accident-related injuries

• Other third-party accident-related losses, which may include lost income, mental and physical pain and suffering and other financial losses

While the at-fault driver may be held legally liable for accident-related injuries and property damage, North Carolina’s statute of limitations sets a three-year time limit on the injured party’s right to sue the at-fault driver for damages. Wrongful death claims must be filed within two years of the affected person’s death.  

North Carolina is one of four states with shared fault rules, also called contributory negligence, which state that if both drivers were partially to blame for the accident, neither driver can sue the other for damages.  

At-fault vs. No-fault States 

Each state determines how or if at-fault drivers may be held financially responsible for damages resulting from a car accident.  

• No-fault state—Each driver files a claim with their insurer regardless of who was at fault. Medical bills may be paid by each driver’s personal injury protection (PIP) coverage up to the policy’s coverage limits.

• At-fault state—Insurers for each driver evaluate the situation and determine which driver is legally liable. The at-fault driver’s auto liability policy may help cover property damage and bodily injuries.

What Auto Insurance Does North Carolina Require? 

North Carolina drivers must have auto insurance that meets the state’s requirements, which include the following: 

• Liability insurance—This coverage helps pay for third-party property damage and bodily injuries after an at-fault accident.

• Uninsured and underinsured motorist coverage—This coverage helps pay for your injuries and property damage if the at-fault driver doesn’t have liability coverage or their policy limits aren’t high enough to pay your damages.

If you financed or leased your vehicle, the lienholder requires full coverage insurance, which may include the following: 

• Collision insurance—This policy may help pay to repair or replace your vehicle if you hit another vehicle or object.

• Comprehensive insurance—This policy may help pay to repair or replace your vehicle if you are in a noncollision-related accident or incident, such as a fire or severe storm, or if your car is stolen or vandalized.

• Gap coverage—This policy helps bridge the financial gap between the insurer’s settlement and the total payoff on your loan or lease if your car is a total loss after a covered accident or incident.