Why Health Insurance Matters in Your North Carolina Auto Accident Claim
t’s one of the most overlooked issues in auto accident cases: whether or not you have health insurance. Most people focus on the strength of their personal injury claim—who was at fault, how badly they were hurt, whether there’s insurance coverage. And those things do matter. But here’s a hard truth that surprises a lot of people: even with a “good case,” you can still end up in a financial bind if you don’t have health insurance.
Let me explain why.
There’s Often a Limit to How Much Money Is Available
In North Carolina, the driver who caused the accident typically has liability coverage through their auto insurance, but that coverage is often limited. The state minimum is $50,000 per person for bodily injury as of 2025 (it was $30,000 per person for 2024 and before cases). If your medical bills, lost wages, and pain and suffering exceed that amount, you may be stuck—unless the at-fault driver has more coverage or you carry underinsured motorist protection (and even then, those policies have limits too).
In other words: the value of your case may be high, but the available money may not be.
Health Insurance Can Keep Your Case From Sinking
When you have health insurance, your medical providers usually bill your health plan first. The insurer then pays a discounted, negotiated rate. These discounts—often called “adjustments”—mean the actual amount you owe for your treatment is often far less than the full sticker price.
For example, if a hospital bills $10,000 for treatment, your health insurance might only pay $3,000 and write off the rest. That’s a $7,000 reduction in your total medical bills. And when it comes time to settle your injury claim, those reductions can make a huge difference in how much money you get to keep after all the bills and liens are paid.
If you don’t have health insurance, you may owe the full $10,000—and that can leave you in an impossible position when the settlement money runs out.
No Insurance? You Could Be Stuck With Medical Debt
Here’s where things get tough. Without health insurance, you may be treated on a “lien basis,” where providers agree to wait for your case to settle before getting paid. But they still want full price—and they may not budge. That can drain most (or all) of your settlement, leaving you with little or nothing to show for your case.
You may even end up worse off financially than someone with less serious injuries, just because you didn’t have coverage to negotiate your bills down.
The Bottom Line
Having health insurance is not just about access to care—it’s a critical tool that helps preserve the value of your injury claim. It gives you leverage, reduces what you owe, and protects your financial well-being when a case settles.
Even if the other driver was 100% at fault, and even if your injuries are clearly related to the accident, you still need to think about how your medical expenses will be handled. Health insurance makes a huge difference.
If you’ve been injured in a car accident and have questions about how to protect yourself financially, contact Jeffrey Allen Howard, Attorney at Law, PLLC. I’ll help you understand your rights, your options, and how to get the most from your claim—without unnecessary surprises.
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