Starting July 1, 2025, North Carolina implemented significant changes to auto insurance requirements that will impact every driver in the state. The new minimum liability limits have increased from $30,000/$60,000/$25,000 to $50,000/$100,000/$50,000, making North Carolina one of the states with the highest minimum coverage requirements in the country.

Understanding the Premium Impact

For most drivers carrying minimum coverage, the increase translates to approximately $100 per year in additional premiums. While this represents a modest increase, it provides significantly better financial protection. About 35% of North Carolina drivers currently carry minimum limit policies, so this change will affect a substantial portion of the driving population.

If you already carry coverage above the previous minimums, you may see little to no change in your premiums. However, it's worth reviewing your policy with your insurance agent to ensure your coverage still meets your needs under the new regulations.

Enhanced Protection for Accident Victims

With average bodily injury claims now at $27,600 per injured party, the new $50,000 minimum limit means drivers are less likely to exhaust their auto policies and face out-of-pocket expenses. This is particularly important given today's rising medical costs and repair expenses.

The changes also include improvements to underinsured motorist (UIM) coverage. Previously, UIM benefits were reduced by the amount paid by the at-fault driver's liability insurance. Under the new law, you can now collect the full amount of your UIM coverage without these reductions, providing better protection when you're hit by an inadequately insured driver.

What You Should Do Now

Review your current policy to understand how these changes affect your coverage and premiums. The new limits provide better financial protection for all drivers, ensuring accident victims can better cover medical expenses and property damage. Consider whether additional coverage beyond the new minimums might be appropriate for your situation.

While premiums may increase slightly, North Carolina continues to rank in the middle of the pack for auto insurance rates, well below the most expensive states. These changes represent a significant step forward in protecting North Carolina drivers and accident victims with more adequate coverage in today's economy.