North Carolina's minimum liability limits went up on July 1, 2025. Here's what changed, and what you should actually carry.
North Carolina now requires minimum auto liability limits of $50,000 per person, $100,000 per accident, and $50,000 property damage — up from 30/60/25 — effective July 1, 2025, with underinsured motorist coverage included on new and renewed policies. Those are legal minimums, not recommendations: a serious injury claim exhausts $50,000 quickly, and North Carolina's contributory negligence rule makes adequate limits and uninsured motorist coverage more important here than in most states.
Injury you cause to others. NC's minimum is now 50/100 — most drivers with assets should carry considerably more.
Damage you cause to other vehicles and property. NC's minimum rose to $50,000, which a single newer vehicle can exceed.
Protects you when the at-fault driver has no insurance or not enough. UIM is now included on new and renewed NC policies.
Damage to your own vehicle in an accident, subject to your deductible.
Theft, hail, flood, fire, glass, and animal strikes — the non-collision losses.
Medical costs for you and your passengers regardless of fault. Inexpensive and useful.
The change applies to policies written or renewed on or after that date. Two practical consequences: premiums rose across the board, and drivers who had been carrying bare minimum limits got a meaningful coverage upgrade whether they wanted one or not. Carriers absorbed the increase at different rates, which is exactly the situation where comparing across multiple companies pays.
North Carolina is one of a small number of states that still applies pure contributory negligence: if you are found even slightly at fault for an accident, you may be barred from recovering anything from the other driver. This is unusually harsh, and it means your own coverages — collision, medical payments, and uninsured/underinsured motorist — carry more weight here than in states with comparative fault rules. Relying on being able to collect from the other party is a weaker plan in North Carolina than almost anywhere else.
A $50,000 property damage limit sounds substantial until you consider what a late-model truck or SUV costs, or what happens in a multi-vehicle accident. Property damage limits are cheap to increase.
Liability limits protect what you own. If a judgment exceeds your limit, the difference comes from you. For anyone with a home, savings, or future earnings worth protecting, minimum limits plus an umbrella is a materially better position than higher auto limits alone.
Licensed in five states. We write this coverage across North and South Carolina — our primary markets — as well as Tennessee, Virginia, and Florida.