North Carolina recently raised auto coverage minimums for liability and underinsured/uninsured motorist (UM/UIM) protection. Formerly, the state minimums were $30,000 per person and $60,000 per accident for bodily injury, with $25,000 for property damage (30/60/25).
Starting July 1, 2025, for new and renewing policies, the required minimum coverage nearly doubles, jumping to $50,000 per person and $100,000 per accident, with $50,000 for property damage. This change reduces the risk that accident victims will be underinsured and increases the available insurance coverage in some claims.
Serious injuries may still exceed the coverage available under the at-fault driver’s policy. A Charlotte car accident lawyer can review how the available policy limits may affect your particular claim and work to get you the maximum compensation under all policies.
What are North Carolina’s New Minimum Auto Coverage Limits?
For policies issued or renewed on or after July 1, 2025, North Carolina drivers are required to carry higher minimum auto insurance coverage. These new limits aim to provide better financial protection for car accident victims and reduce the risk of underinsurance.
A Charlotte personal injury lawyer can explain how these new coverage minimums affect a claim after an accident. Under Session Law 2024‑29, Senate Bill 319, the new limits apply to all auto insurance policies issued, renewed, or updated on or after July 1, 2025.
Bodily Injury and Property Damage Liability
The minimum bodily injury liability has increased from $30,000 to $50,000 per person and from $60,000 to $100,000 per accident. Property damage liability has risen from $25,000 to $50,000 per accident.
These changes help ensure that the driver who caused the accident has sufficient insurance coverage to compensate victims for medical costs, vehicle repairs, or other losses.
Medical Payments Coverage
For medical payments (MedPay) coverage, the new minimum requirement is $1,000 per person. This coverage is optional, and under G.S. 58‑37‑35(b), MedPay is not provided through the Reinsurance Facility for motorcycles or mopeds; availability may vary by insurer.
How Uninsured and Underinsured Motorist Coverage Changed
The revised limits also increase the required uninsured motorist (UM) coverage to $50,000 per person, $100,000 per accident for bodily injury, and $50,000 per accident for property damage, with a $100 deductible.
The minimum underinsured motorist (UIM) coverage is now set at $50,000 per person and $100,000 per accident for bodily injury. These increases give drivers greater financial resources if an uninsured or underinsured motorist injures them.
Potential Impact on Insurance Premiums
The new minimum insurance limits in North Carolina may lead to higher premiums for all drivers. Increasing liability limits and adjusting other coverages raise the amount insurers are required to pay in the event of a claim.
Insurance companies may raise rates for policyholders statewide to offset this increased risk.
North Carolina’s Increased Auto Coverage Minimums May Not Cover the Cost of Catastrophic Injuries
These new minimums may increase the insurance coverage available in some claims, but coverage may still not be sufficient for victims suffering catastrophic injuries. Severe auto accident injuries result in substantial medical bills, long-term care needs, lost income, and other financial losses that can far exceed $100,000.
You may need to explore additional options to cover significant losses. For example, underinsured motorist (UIM) coverage can help bridge the gap when the at-fault driver’s liability limits are exhausted.
Hiring a lawyer and filing a personal injury lawsuit against the at-fault driver or other liable parties, such as employers of commercial vehicle drivers, is an option for seeking compensation beyond policy limits.
Hiring a Lawyer is Still Important, Even With the Increased Auto Coverage Minimums
North Carolina’s increased auto insurance coverage limits provide additional financial protection, but these limits alone do not guarantee fair compensation after an accident. The state’s pure contributory negligence rule makes it particularly important to carefully assess fault.
Auto accident victims are barred from recovering damages if they are found to be even 1% at fault. This rule makes securing compensation more challenging, regardless of the severity of the injuries or damages.
If the at-fault driver’s behavior rises to the level of gross negligence or willful and wanton conduct, such as drunk driving, a victim may still recover damages despite contributory negligence.
Our Attorneys Can Determine Your Options for Compensation Under North Carolina’s New Auto Coverage Minimums
North Carolina raised its minimum auto insurance liability limits on July 1, 2025, which may increase the insurance coverage available in some accident claims.
A severe injury can still exceed $100,000 in available liability coverage, so a careful review of all coverage options is still important. A Charlotte car accident lawyer can explain how the new minimums may affect the starting point for settlement talks.
For help after an accident, contact Auger & Auger Accident and Injury Lawyers. We have recovered over $100 million for injured North Carolinians, and our A&A Zero Fee Guarantee™ means you do not pay unless we win.
