If the other driver was at fault, can I make their insurance pay instead of going through my own policy and paying a deductible? – North Carolina

Short Answer

Yes. In North Carolina, when another driver is at fault, a vehicle owner can usually pursue a third-party property-damage claim directly with the at-fault driver’s liability insurer, which can avoid paying a collision deductible up front. The tradeoff is timing: a third-party insurer often will not pay until fault and coverage are confirmed. If a claim has already been opened under the owner’s policy, the owner’s insurer may still pay first (minus the deductible) and then seek reimbursement from the at-fault party through subrogation, including trying to recover the deductible.

Understanding the Problem

In North Carolina, when a parked vehicle is totaled and the other driver later comes forward, the key question becomes whether the vehicle owner can shift the property-damage claim to the other driver’s liability insurance instead of continuing under the owner’s own collision coverage and paying a deductible. The decision point is usually timing and proof: can the at-fault driver’s insurer accept liability and confirm coverage quickly enough to handle the total-loss payment directly, or does the owner’s policy need to pay first to keep the claim moving?

Apply the Law

North Carolina generally allows an at-fault driver (and the at-fault driver’s insurer) to resolve property-damage claims without that payment being treated as an admission of fault for other claims. Practically, that means a vehicle owner can pursue a third-party property-damage claim with the other driver’s insurer while still preserving the ability to pursue other claims separately, as long as any settlement paperwork is reviewed carefully and limited to property damage when appropriate. If the owner’s insurer pays under collision coverage, the owner’s insurer typically pursues reimbursement from the at-fault party (subrogation), and the deductible issue often becomes part of that recovery process.

Key Requirements

Identified at-fault driver and active coverage: The other driver must be identified and their liability policy must apply to the crash (coverage can be disputed for reasons like exclusions, late notice, or policy limits).
Proof of fault and damages: The third-party insurer usually needs enough information to accept liability and confirm the amount owed (photos, police report, witness info, tow/storage records, and a valuation for a total loss).
Careful settlement paperwork: Any release should match the goal (property damage only versus broader claims). A property-damage settlement should not unintentionally waive other rights.

What the Statutes Say

N.C. Gen. Stat. § 1-540.2 (Settlement of property damage claims from motor vehicle accidents) – Allows settlement of the property-damage portion without treating that payment as an admission of liability, and clarifies that settling property damage alone does not automatically release other claims unless the written agreement says so.

Analysis

Apply the Rule to the Facts: Here, the vehicle was parked and totaled, a police report was filed, and a claim was opened under the owner’s policy before it became clear the other driver also reported the crash and appeared to be at fault. Those facts often support switching to (or also pursuing) a third-party claim because the at-fault driver is identified and there is a paper trail to help the other insurer accept liability. If the third-party insurer accepts fault and coverage promptly, it may pay the total-loss value directly and avoid a deductible being paid up front; if it does not, the owner’s collision claim can keep the process moving while reimbursement is pursued later.

Process & Timing

Who files: The vehicle owner (or the owner’s insurer if it already paid and is pursuing subrogation). Where: With the at-fault driver’s auto liability insurer (claims department). What: A third-party property-damage claim supported by the police report, photos, tow/storage invoices, and total-loss valuation paperwork. When: As soon as the at-fault driver and insurer information are known, because storage fees and vehicle disposition issues can grow quickly.
Liability and coverage review: The third-party insurer typically investigates fault and confirms the policy applies. This step can move quickly when the other driver admits fault and the police report supports it, but it can slow down if facts are disputed or coverage questions arise.
Payment and paperwork: For a total loss, the insurer usually requires title/ownership documents and a signed release. The release should be reviewed to confirm it is limited to property damage if that is the intent.

Exceptions & Pitfalls

Deductible timing: If the owner uses collision coverage, the deductible is usually applied up front; reimbursement of the deductible often depends on successful recovery from the at-fault party and can take time.
Coverage disputes and limits: The other driver’s insurer can deny coverage or have insufficient limits, which may force reliance on the owner’s policy (if available) to avoid long delays.
Release language: A property-damage check may come with a release. Under North Carolina law, property-damage settlement does not automatically waive other claims unless the written settlement says so, so the document should match the intended scope.
Total-loss logistics: Title transfer, lienholder payoff, and storage/tow issues can stall payment. Keeping documents organized and responding quickly can prevent avoidable delays.

Conclusion

Yes—when the other driver is at fault in North Carolina, a vehicle owner can usually pursue the at-fault driver’s liability insurer directly for property damage and may avoid paying a deductible up front. The practical issue is speed: the third-party insurer typically pays only after confirming fault, coverage, and the total-loss value. If time matters, the owner’s collision claim can pay first (minus the deductible) while reimbursement is pursued. The next step is to open (or confirm) the third-party claim and provide the police report and total-loss documentation promptly.

Talk to a Real Estate Attorney

If an at-fault driver damaged a parked vehicle and the insurance process is turning into delays, paperwork problems, or release-language concerns, our firm has experienced attorneys who can help explain options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.