Insurance terms can vary from state to state, and “no-fault insurance” is one term that often causes confusion.
What Does No-Fault Insurance Mean?
In a no-fault auto insurance system, drivers generally look to their own insurance company for certain injury-related expenses after an accident, regardless of who caused it.
These benefits are often provided through Personal Injury Protection, commonly called PIP. Depending on the state and policy, PIP may address certain medical expenses, lost income, or other accident-related costs.
No-fault rules do not necessarily determine how damage to a vehicle is paid. The specific benefits and claim procedures depend on the laws of the state where the policy is issued.
Is North Carolina a No-Fault State?
No. North Carolina does not use a no-fault auto insurance system.
North Carolina uses a liability-based system in which legal responsibility for an accident matters. Liability insurance may pay for injuries or property damage sustained by others when an insured driver becomes legally responsible, subject to the policy’s terms and limits.
Liability coverage generally does not pay for the insured driver’s own injuries or damage to the insured vehicle. Other purchased coverages may apply depending on the circumstances of the accident.
What Is Medical Payments Coverage?
North Carolina drivers may purchase Medical Payments coverage, commonly called MedPay.
When included in an auto policy, MedPay may help pay reasonable and necessary medical or funeral expenses resulting from an automobile accident for eligible individuals, up to the limits listed in the policy. It may provide assistance regardless of who caused the accident.
MedPay is not the same as PIP, and its availability does not make North Carolina a no-fault state. It is a separate coverage with its own limits, terms, conditions, and exclusions.
What Coverages Should Drivers Review?
Your auto insurance declarations page shows the coverages and limits included in your policy. Depending on what was purchased, these may include:
- Bodily injury and property damage liability
- Medical Payments coverage
- Uninsured and underinsured motorist coverage
- Collision coverage
- Other Than Collision coverage, commonly called comprehensive coverage
Each coverage serves a different purpose. Whether a claim is payable depends on the facts of the accident and the applicable policy language, limits, deductibles, conditions, and exclusions.
Middle Creek Insurance can help you review available North Carolina auto insurance options based on your expressed needs and budget.
This article is provided for general educational purposes and is not legal advice or a statement of coverage. Coverage availability, terms, conditions, limits, deductibles, and exclusions vary by policy and insurance carrier. Refer to the applicable policy for specific coverage information.
