Yes, you should notify your own insurance company, even when the other driver is clearly at fault. Your auto insurance policy is a contract, and it almost certainly includes a clause that requires you to report any accident in a timely manner.
Making this call protects your rights and fulfills your contractual duty. The more important decision is whether to file the actual claim for damages through your policy or through the at-fault driver’s insurance, a process known as a “third-party claim.” This decision has financial implications and becomes complicated if the other insurer disputes fault or delays payment.
If you have questions about your specific situation after a car accident in North Carolina, the team at Maginnis Howard is here to help. Call us at (919) 526-0450 for a free review of your case.
Key Takeaways for North Carolina Accident Victims
- You must report the accident to your own insurance company. This fulfills your contractual duty and protects your access to your own coverage, like Uninsured/Underinsured Motorist (UM/UIM) benefits, if the at-fault driver’s insurance is insufficient or absent.
- The at-fault driver’s insurance adjuster is not on your side. Their job is to minimize the company’s payout, so you should not provide a recorded statement or accept an initial settlement offer without first seeking legal advice.
- North Carolina law protects you from rate increases for not-at-fault accidents. While some factors might affect your premium, the fear of a rate hike should not prevent you from reporting an accident and protecting your financial interests.
Why You Should Still Call Your Own Insurance Company
What Does It Mean to “Report” an Accident to My Insurer?
Think of reporting the accident as simply fulfilling your end of a bargain. It’s like letting your landlord know a pipe burst, even if your neighbor upstairs caused the flood. You are creating an official record of the incident with a company that has a contractual obligation to you. This is very different from formally filing a claim for repairs or medical bills against your own policy, which is a separate step you may or may not need to take later.
Three Key Reasons to Notify Your Insurer
Putting your own insurance company on notice is a protective measure. Here are the three primary reasons why this call is important:
- To Fulfill Your Policy’s Requirements: Your insurance policy is a legal contract. Nearly all policies contain a “notice clause” requiring you to inform them of any accident, regardless of who was at fault. Failing to do so could give them a reason to deny coverage later if you unexpectedly need it. For example, what happens if the at-fault driver’s insurance denies the claim? If you haven’t told your insurer about the wreck, they might argue you violated your policy terms.
- To Protect Your Access to Your Own Coverage: The moments after a crash are chaotic. What if the other driver gave you false insurance information? What if their policy lapsed last month? Worse, what if their insurance limits are far too low to cover the full cost of your vehicle repairs and medical bills? These situations are common. In these cases, you may need to rely on your own Uninsured/Underinsured Motorist (UM/UIM) coverage. Notifying your insurer early keeps this option open, acting as a safety net.
- To Get Ahead of the Other Driver’s Story: The other driver will report the accident to their own insurance company, and their version of events might not align with reality. By giving your insurer a prompt, factual account, you establish your side of the story from the beginning with an entity that is contractually tied to you. This is invaluable if the other driver later changes their story to avoid blame.
What Happens When You File a Claim with the At-Fault Driver’s Insurance?
This Is Called a “Third-Party Claim”
When you file a claim directly with the other driver’s insurance, you are dealing with a company that has no contractual duty to you. This is known as a “third-party claim.” Simply put, you are a third party asking for payment from an agreement between two other people: the at-fault driver and their insurer. This fundamentally changes the dynamic of the relationship.
What to Expect from Their Insurance Adjuster
The at-fault driver’s insurance company is a business. Its primary goal is to protect its financial interests by minimizing the amount it pays out on claims. Their adjuster is trained to investigate claims with this goal in mind.
- The Recorded Statement: One of the first things the other adjuster will ask for is a recorded statement. Their questions are designed to elicit responses that could be used to argue you share some of the blame for the collision.
- Don’t: Give a recorded statement without first speaking to an attorney.
- Do: Provide basic, factual information like your name, contact details, and the location of the accident. You should politely decline to be recorded until you have sought legal counsel.
- The Investigation: The adjuster will conduct their own investigation. They will review the police report, speak with their driver, and examine photos of the vehicle damage. They are looking for any piece of evidence to shift blame onto you. Our role is to keep them accountable and ensure no amount of fault is unjustly placed on your shoulders.
- The Settlement Offer: The claim process is long, tedious, and filled with paperwork. As medical bills and other expenses begin to mount, it’s easy to feel pressured to accept the first low offer they present. Their initial offer is almost never their best offer and is usually a starting point for negotiations.
How Our Firm Handles the At-Fault Insurer for You
This is where an experienced car accident attorney steps in. When you hire Maginnis Howard, we take over all communications on your behalf. You will never have to speak to the other driver’s adjuster again. We provide them only with the necessary information to evaluate your claim and we build a powerful case with evidence, including police reports, witness statements, and medical records, to clearly establish the other driver’s fault and the full extent of your damages.
Will My Insurance Rates Go Up If the Accident Wasn’t My Fault?
This is the number one concern that causes people to hesitate before calling their own insurance company. You were following the rules of the road, yet you’re worried about being financially penalized for someone else’s mistake.
How North Carolina Law Addresses This
North Carolina law and regulations are designed to prevent insurers from penalizing you for an accident you did not cause. The system is intended for the at-fault driver’s insurance to be the one that pays. An insurer may not lawfully raise your rates or cancel your policy for a single accident where you were not at fault.
So, Why Do Some People See Rate Increases?
While an insurer may not directly punish you for a not-at-fault accident, they may re-evaluate your overall risk profile. This is where things feel unfair.
- Claim Frequency: If you have multiple claims in a short period, even if none are your fault, an insurer might see you as a higher-risk driver. This could be because you frequently drive in an area with a high rate of collisions.
- Loss of a “Claim-Free Discount”: Many insurance policies offer a discount for remaining claim-free for a certain number of years. A not-at-fault accident might technically remove that discount, leading to a higher premium that feels like a penalty, even though it isn’t a surcharge.
- General Rate Hikes: Sometimes, a rate increase has nothing to do with your accident at all. Insurers periodically adjust rates for everyone in a specific geographic area based on broad factors like increased local repair costs or a higher frequency of accidents in your city. The timing is just an unfortunate coincidence.
The Bottom Line on Rate Increases
The fear of a potential, and usually small, rate change should not stop you from protecting your financial future. Failing to report the accident or losing access to your own valuable coverage could cost you thousands of dollars more than any minor premium adjustment. Protecting your rights is the priority.
What if the Other Driver’s Insurance Is Not Enough to Cover My Damages?
When Minimum Coverage Is Not Enough
As of 2025, North Carolina requires drivers to carry minimum liability coverage of $50,000 for bodily injury per person, $100,000 per accident, and $50,000 for property damage. In a serious accident, these amounts are exhausted with alarming speed. A modern truck or SUV easily costs more than $50,000 to replace, and a single surgery or hospital stay burns through the $50,000 bodily injury limit.
This Is Where Your Own Policy Becomes Your Safety Net
This scenario is precisely why you pay for your own insurance and why it is important to notify them after any accident. Your own policy contains coverage that protects you when the at-fault driver’s policy falls short.
- Underinsured Motorist (UIM) Coverage: If the at-fault driver’s liability limits are too low to cover all of your medical bills and lost wages, your UIM coverage steps in to cover the difference, up to your own policy’s limits.
- Uninsured Motorist (UM) Coverage: If the at-fault driver has no insurance at all, or if you are the victim of a hit-and-run, your UM coverage pays for your bodily injuries and, in some cases, your property damage.
- Collision Coverage (for your vehicle): You also have the option to file a claim for your vehicle repairs under your own collision coverage. While you will have to pay your deductible upfront, your insurer will then pursue the at-fault driver’s company for reimbursement. This process is called subrogation, and your insurer will also work to get your deductible back for you.
Frequently Asked Questions
Do I need to call the police for a minor accident in NC?
Yes. Under North Carolina law, you must immediately report any accident that involves an injury or results in property damage of $1,000 or more. Given the high cost of modern car repairs, it is always the best practice to call the police to create an official, unbiased report of the incident.
What if a passenger in my car was injured?
Passengers who are injured in a collision have the right to file a claim against the at-fault driver’s insurance policy for their injuries. Since a passenger is rarely at fault for a crash, they seek compensation from the driver who caused it, regardless of which car they were in.
How long do I have to file a car accident claim in North Carolina?
In North Carolina, the statute of limitations for filing a lawsuit for personal injury or property damage from a car accident is generally three years from the date of the incident. However, evidence disappears and memories fade quickly, so it is always best to act much sooner.
Can I just text or email my insurance agent?
While your local agent is a good resource for questions, you should formally report the accident through your insurance company’s official claims hotline or online portal. This ensures the incident is properly documented in their system and assigned a formal claim number, which is necessary to protect your rights.
Let Maginnis Howard Handle the Headaches
You didn’t ask for this disruption to your life, and you don’t have to handle the insurance fallout alone. We regularly help people in Raleigh and across North Carolina get their lives back on track after a serious crash.
One phone call is enough to get started. If you’re ready to let someone else take over, call us at (919) 526-0450.
