Important 2025 Auto Insurance Updates in North Carolina

Dear Valued Customer and Future Customers,

We want to notify you about recent changes introduced by the North Carolina legislature that will affect your auto insurance policy. Although these changes won’t take effect until July 1, 2025, we’re providing this update now to help you understand how they may impact your policy. Please take a moment to review this important information.

What’s Changing?

The North Carolina legislature has raised the minimum liability limits for auto insurance coverage statewide. These updates are mandatory for all auto insurance policies in the state, regardless of your insurance provider.

Key Changes

• Bodily Injury Coverage: The minimum per-person coverage has been increased from $30,000 to $50,000, and per-accident coverage from $60,000 to $100,000.
• Property Damage Coverage: The minimum requirement has been raised from $25,000 to $50,000.
• Uninsured/Underinsured Motorist Bodily Injury Coverage: Both are now mandatory at a minimum of $50,000 per-person and $100,000 per accident.
• Uninsured Motorist Property Damage Coverage: The minimum requirement has been raised from $25,000 to $50,000.
• Inexperienced Drivers: Drivers that obtain their license after 7/1/25 will be considered inexperienced for 8 years (up from 3).
• Violation History: Drivers with 4+ point violations will be charged for 5 years (up from 3) with the exception of speeding violations.

Why the Change?

It’s important to note that neither the insurance commissioner, insurance companies, nor agents requested these changes. These changes were mandated by the North Carolina General Assembly as a result of the increased costs of vehicles and medical expenses. While the increase in liability limits does provide more coverage for policyholders, they will also lead to increased insurance rates.

What Does This Mean for You?

After 7/1/25, when your auto insurance policy renews it will provide enhanced coverage to better protect you in case of accidents. However, please be aware that this improvement in coverage may result in higher insurance premiums.