North Carolina raised its auto insurance minimums: what changes for you
North Carolina changed its auto insurance law in 2025. If your policy was issued or renewed on or after July 1, 2025, the legal minimums are higher than they used to be, and a few rating rules changed too. Here is what that means for you.
The new minimum liability limits
- $50,000 for injuries to one person (was $30,000)
- $100,000 for injuries to two or more people in one accident (was $60,000)
- $50,000 for damage to other people's property (was $25,000)
You'll often see this written as 50/100/50. Policies that hadn't renewed by July 1, 2025 change at their next renewal.
Uninsured and underinsured motorist coverage on every policy
Uninsured and underinsured motorist coverage (UM/UIM) now has to be on every new and renewed policy, at least at the new limits. It protects you when the driver who hits you has no insurance or not enough of it. The law also changed how underinsured coverage pays: it is now measured against your total damages instead of being reduced by what the other driver's policy paid.
Surcharges that last longer
- New drivers: drivers first licensed on or after July 1, 2025 can pay an inexperienced-driver surcharge for up to 8 years instead of 3, with a lower surcharge after the third year.
- Tickets: violations worth 4 or more points under the Safe Driver Incentive Plan now carry a surcharge for 5 years instead of 3.
What should you do at your next renewal?
- Check that your declarations page shows at least 50/100/50 and UM/UIM coverage.
- Remember that the minimum is the floor, not a recommendation. A serious accident can cost far more than $50,000, and anything above your limits can come out of your own pocket.
- If your price went up, ask us to compare it with other carriers. That's what an independent agency is for.
This guide is general information, not legal advice, and every policy is different. A licensed agent can review your situation and your policy with you. Call 1-888-311-4660 or request a quote.