What Does It Mean to Live in a No-Fault State? An Overview of North Carolina's Laws

Answered by

Robert Herrera
Robert HerreraLicensed Auto Insurance Agent

Posted on Jan 20, 2023

There are several states in the US that have "no-fault" laws. This means that in the event of a car accident, both drivers' insurance companies will pay out damages, regardless of who was at fault. North Carolina is one of these states.

There are a few key things to know about North Carolina's no-fault laws. First, both drivers' insurance companies will pay out damages, regardless of who was at fault. This is known as "liability" coverage.

Second, drivers are not allowed to sue each other for damages, unless the injuries are very serious. This is known as the "liability cap" or "damage cap." The damage cap in North Carolina is $30,000 per person, $60,000 per accident.

Third, drivers are not allowed to file a claim with their own insurance company if they are injured in an accident. This is known as the "medical payments" coverage.

Finally, drivers are not allowed to file a claim with their own insurance company if their car is damaged in an accident. This is known as the "collision" coverage.

People are also asking

  • Weighing the Pros and Cons of Pennsylvania No-Fault Insurance

    There are pros and cons to both no-fault and fault insurance systems. In a no-fault system, each driver's own insurance company pays for their own damages, regardless of who caused the accident. This eliminates the need to determine who was at fault in the accident, and can speed up the claims proce

    Read more
  • Strategies for Dealing With Uninsured Motorists in Alabama

    There are a few things that Alabama drivers can do to protect themselves from uninsured motorists. One is to carry uninsured/underinsured motorist coverage on their policy. This will help to cover them in the event that they are in an accident with an uninsured driver. Another thing that drivers can

    Read more
  • How Do No-Fault States Handle Car Accident Lawsuits Such as Indiana?

    There are a number of different ways that no-fault states handle car accident lawsuits. Some states, such as Indiana, have a modified no-fault system in which drivers can file a lawsuit for certain types of injuries. Other states have a pure no-fault system in which drivers can only file a claim wit

    Read more