If you’ve been in a car accident, you already know how overwhelming the aftermath can feel. Physical injuries, mounting medical bills, lost income, and emotional trauma can all leave you wondering, “Who’s going to pay for all of this?” It’s a natural question and one that deserves clear, compassionate answers. Speaking with a North Carolina car accident lawyer can help you understand who covers the costs of your accident when you decide to pursue a lawsuit and offer you clarity throughout this journey.
The At-Fault Driver’s Responsibility
Car accident lawsuits are usually based on the idea of fault. Most states, including North Carolina, follow a “fault-based” system when it comes to car accidents. That means the person or party who caused the accident—the at-fault driver—is generally held financially responsible for damages.
If the driver who caused your accident was negligent—whether they were texting, speeding, driving under the influence, or otherwise ignoring the rules of the road—proving their fault will play a key role in your case. However, just because they’re found to be legally responsible doesn’t necessarily mean they’ll personally pay out of pocket. That brings us to the next important factor: insurance.
The Role of Insurance Companies
Most at-fault drivers rely on their car insurance policies to pay for damages. This is the primary source of compensation in the majority of car accident claims and lawsuits. Car insurance typically covers:
- Medical expenses for injuries you sustained in the crash.
- Property damage for your vehicle and other personal items.
- Lost wages if your injuries prevent you from working.
The at-fault driver’s policy will have coverage limits, which set the maximum amount their insurer will pay. For example, if their policy covers $50,000 for injuries and $25,000 for property damage, these are the maximum amounts their insurance company is obligated to provide. Unfortunately, these limits don’t always account for the full extent of your losses, especially in serious accidents involving devastating injuries or long-term disabilities.
If your damages exceed the at-fault driver’s policy limits, don’t lose hope. There are other options for recovering what you are owed.
What Happens If the At-Fault Driver Has No Insurance or Not Enough Insurance?
It’s an unfortunate reality that not everyone on the road has adequate insurance coverage. Some drivers are uninsured, while others carry only the bare minimum required by law. If your damages exceed the at-fault driver’s insurance limits—or they don’t have insurance at all—it can feel like hitting another roadblock after an already difficult experience.
But you do have options. If you have uninsured motorist (UM) or underinsured motorist (UIM) coverage as part of your own auto insurance policy, these coverages can step in to fill the gap. Here’s how they work:
- Uninsured Motorist Coverage (UM): This kicks in if the at-fault driver has no insurance at all. It can help cover your medical bills, lost wages, and other damages.
- Underinsured Motorist Coverage (UIM): This applies when the at-fault driver’s insurance doesn’t cover all your damages. UIM coverage pays the difference up to the limits of your own policy.
Relying on your own insurance may feel frustrating, especially when you weren’t the one who caused the accident. But you’ve paid for these coverages to protect you in precisely these situations. It’s your right to use them.
Taking Legal Action Beyond Insurance
Sometimes, insurance isn’t enough to fully compensate a victim of a car accident. If you find yourself in this position, you might consider taking direct legal action against the at-fault driver for any remaining damages. This could involve pursuing their personal assets. However, this approach often comes with challenges. Many individuals don’t have the financial resources to cover significant damages out of pocket, which can make collection difficult even if you win your lawsuit. A North Carolina car accident lawyer can assess whether this path is worth pursuing based on the facts of your case.
If the at-fault driver was working at the time of the accident—for example, driving a delivery truck or rideshare vehicle—their employer may share liability. Companies typically have commercial insurance policies with higher limits than personal policies, which could increase the compensation available to you. Pursuing a claim against an employer or other liable third party is something to consider in complex car accident cases.
Other Potential Sources of Compensation
When seeking fair compensation after a car accident, it’s important to consider all possible avenues. Here are a few additional sources that may come into play:
- Product Defects: If a defect in one of the vehicles involved caused or contributed to the accident (like faulty brakes or a defective airbag), the manufacturer of the vehicle or part could be held liable.
- Roadway Hazards: If poor road design, inadequate signage, or lack of maintenance led to the accident, a government entity could bear some responsibility. These cases can be complicated, but they may provide another potential source of compensation.
- Passenger or Other Drivers: It’s not uncommon for multiple parties to share fault in a single accident. For example, another driver may have contributed to the crash even if they weren’t directly involved in the collision with your vehicle.
Identifying all possible sources of compensation—including people, companies, and entities other than the at-fault driver—can make a significant difference in your recovery. For example, exploring compensation for a broken arm after a car accident may involve looking beyond the driver to determine if others share liability. This is one of the reasons why seeking professional guidance can be so important.
How Do You Receive Payments After a Settlement or Verdict?
Once a settlement is reached or a court verdict is awarded in your favor, the final step is receiving your compensation. Payments may be made all at once through a lump sum or over time in installments, depending on the circumstances.
Here’s an important note to remember: compensation for things like medical bills or property damage is rarely immediate. It can take time to finalize payment details, especially when multiple parties or insurance companies are involved. Patience is key, but it’s understandable if the waiting feels frustrating. Working with an experienced advocate ensures the process moves forward as efficiently as possible.
Why Thoughtful Legal Representation Matters
The legal process surrounding car accident lawsuits can be overwhelming, especially when you’re already dealing with physical and emotional recovery. Determining who pays for your damages often means navigating complex arrangements between at-fault drivers, insurance companies, third parties, and additional coverage you may hold. With so many moving parts, it’s easy to feel lost.
That’s why having the right legal partner by your side makes such a difference. At Maginnis Howard, we understand the financial, emotional, and physical burdens a car accident can place on you and your family. With years of experience advocating for accident victims across North Carolina, we are here to fight for the compensation you deserve—all with the compassion and dedication you can count on.
If you’ve been injured in a car accident, don’t face the uncertainty alone. Reach out to Maginnis Howard at (919) 526-0450 or through our online form for caring, personalized, and strategic legal representation. We offer free initial consultations to discuss your case and legal options.
