Legal Question in Insurance Law in North Carolina

Re: Why is GEICO not liable

First, there is an issue of "proof" as to who was driving, without a witness to say that the suspect was driving, and assuming he did not make an admission. He cannot be compelled to testify against himself. There is, however, a very important legal "presumption" that a vehicle is being driven with the consent of the owner, and as an agent of the owner. Without contrary proof, you can prevail against the owner. Therefore, you should be able to prevail against the suspect driver (whom I presume is the owner). Also, as for GEICO, their non-cooperation is not a defense as the property damage coverage is mandatory under the Financial Responsibility Act. If they deny the claim for that reason, you can pursue a small claims action (or regular action), and probably recover from GEICO, but there is some degree of uncertainty. Also, as an aside, you could conceivably sue for punitive damages against the drunk driver, which would generally be covered by insurance, and this should at least provide some leverage.

Re: Why is GEICO not liable

I would immediately send all relevant information to the insurer - give them estimates, a description of what happened, etc., so that they have enough material from you as though they had interviewed the defendant who is not cooperating. Do not do anything on the phone - only communicate in writing and KEEP COPIES OF EVERYTHING YOU SEND.

They are entitled to know all about the accident so that they can adjust the claim. They are not entitled to rely only on information given to them by their own insured. So if you do his job, they lose their "non-cooperation" defense.

Then I would sue the defendant in small claims court for all of your damages. If you win you can enforce your judgment against his insurer.

If they try to say they didn't know what happened, you have copies of everything you sent to prove they did know enough to have paid you.