Starting July 1, 2025, North Carolina drivers will be required to carry higher minimum auto liability insurance limits. Senate Bill 452, which passed in October 2023, changes the minimum limits on all auto insurance policies in North Carolina from $30,000 to $50,000, which is among the highest minimum limits across the country.

What Are the New Minimum Insurance Limits?

Insurance limits are often listed as follows: $50,000/$100,000/$50,000. The first two numbers are your policy limits on bodily injury, and the third number is your policy limits on property damage. These limits are the same for both liability and uninsured motorist coverage.

The new limits for North Carolina are $50,000/$100,000/$50,000, which breaks down in the following manner:

Bodily Injury Liability:

• $50,000 per person (previously $30,000). This is the maximum the insurance company will pay to cover the injuries of a single person injured in an accident.

• $100,000 per accident (previously $60,000). This is the maximum the insurance company will pay to cover all injuries of every person in an accident.

Why are the Limits Increasing?

• Higher Costs: Medical expenses and car repair bills have risen since the last increase in policy limits in 1999. Often times, minimal limits are not enough to compensate an accident victim for the injuries they sustain.

• More Protection: Raising the minimum limits allows for higher recovery for accident victims and higher liability protection for those who cause an accident.

What does this mean for you?

• If you already carry higher-than-minimum coverage: You may not need to make changes, but check your insurance carrier to confirm.
• If you have minimum coverage: Your insurer will automatically update your policy at renewal to meet the new limits, which may result in a higher premium.
• Uninsured/Underinsured Motorist Coverage: The increased limits also apply to these coverages, which are crucial if you’re hit by an uninsured or underinsured drive

While this change will likely increase insurance costs, these new limit requirements are designed to better protect North Carolina drivers and accident victims. Because of these new changes, accident victims are likely to recover more of their medical expenses.

If you’ve been injured in a car accident, contact us today by submitting our form or giving us a call at 704-333-1114.