North Carolina just made the biggest change to its auto insurance law in a generation. For every policy issued or renewed on or after July 1, 2025, the minimum liability limits are 50/100/50, $50,000 of bodily injury coverage per person, $100,000 per accident, and $50,000 for property damage, up from 30/60/25, which had stood since 1999. The change comes from Session Law 2023-133 (as amended by S.L. 2024-29) and puts North Carolina's floor among the highest in the nation.
The same law reworked uninsured and underinsured motorist coverage: UIM is now included on all new and renewed policies, its trigger is based on your total damages rather than a comparison of policy limits, and insurers can no longer reduce UIM payouts by setting off other coverage (workers' compensation excepted). If your policy renewed at the old minimums, both your coverage and your premium changed, which makes this an unusually good moment to compare what different carriers charge for the new floor.
The figures below explain the policy structure used in North Carolina. They do not predict an individual premium. For a broader view of how state rules differ, use our national car insurance directory.
North Carolina minimum car insurance requirements
Most quotes begin with liability coverage. Bodily injury liability addresses covered injury claims made by other people when you cause a crash. Property damage liability addresses covered damage to their vehicles or other property. The legal minimum keeps a policy compliant, but it does not say how much financial risk a household can comfortably retain.
- Coverage
- Bodily injury liability, one person
- Required amount or rule
- $50,000
- What it generally addresses
- Covered injuries to one other person
- Coverage
- Bodily injury liability, one accident
- Required amount or rule
- $100,000
- What it generally addresses
- Total covered injuries in one accident
- Coverage
- Property damage liability
- Required amount or rule
- $50,000
- What it generally addresses
- Covered damage you cause to other property
- Coverage
- PIP or medical coverage
- Required amount or rule
- Not required (at-fault state)
- What it generally addresses
- Medical coverage rules vary by policy
- Coverage
- Additional state rule
- Required amount or rule
- Uninsured motorist coverage required; underinsured motorist coverage included on all policies issued or renewed on or after July 1, 2025
- What it generally addresses
- Review the selection or rejection shown on the quote
- Coverage
- Accident framework
- Required amount or rule
- At-fault
- What it generally addresses
- The responsible driver's liability coverage is central
- Coverage
- SR-22 filing
- Required amount or rule
- This state does not use the SR-22
- What it generally addresses
- Applies only when ordered after qualifying events
| Coverage | Required amount or rule | What it generally addresses |
|---|---|---|
| Bodily injury liability, one person | $50,000 | Covered injuries to one other person |
| Bodily injury liability, one accident | $100,000 | Total covered injuries in one accident |
| Property damage liability | $50,000 | Covered damage you cause to other property |
| PIP or medical coverage | Not required (at-fault state) | Medical coverage rules vary by policy |
| Additional state rule | Uninsured motorist coverage required; underinsured motorist coverage included on all policies issued or renewed on or after July 1, 2025 | Review the selection or rejection shown on the quote |
| Accident framework | At-fault | The responsible driver's liability coverage is central |
| SR-22 filing | This state does not use the SR-22 | Applies only when ordered after qualifying events |
What the state minimum covers, and what it leaves with you
A minimum policy is designed to satisfy state law. It is not designed around the value of your car, the size of a possible injury claim or the amount of savings you want to protect. Those are household decisions, so they need a separate review.
A financed or leased vehicle commonly needs collision and comprehensive coverage under the contract even when state law does not require them. For plain-language definitions and buying context, visit our insurance guides before selecting limits.
Rules and risks that matter in North Carolina
State law is only the starting point. These North Carolina-specific details show what to confirm before you compare coverage or buy a policy.
What changed on July 1, 2025
Two things happened at once. Minimum liability limits jumped to 50/100/50, so drivers who carried the old 30/60/25 saw their coverage, and typically their premium, rise at renewal. And underinsured motorist coverage went from optional-in-practice to standard: it's included on every new or renewed policy, claimants insured under multiple policies can combine (stack) their UIM limits, and the damages-based trigger means UIM can apply even when the at-fault driver's limits technically match yours.
Because carriers implemented the same statutory change with different rate filings, the price of an identical 50/100/50 policy now varies more between companies than it did before the transition, the spread a quote comparison is built to catch.
No SR-22 in North Carolina, the DL-123 instead
North Carolina doesn't use SR-22 filings. Its financial-responsibility paperwork is the DL-123: a certificate your insurance company prepares proving you carry the required liability coverage, typically needed when you're getting a license after a suspension, licensing for the first time as an adult, or coming back from certain convictions. It's usually valid for 30 days from issuance, and your insurer, not you, generates it.
Drivers who'd need a non-owner SR-22 policy elsewhere use a non-owner policy with a DL-123 here. Either way, the certificate is cheap; it's the underlying violation that moves your premium, and by very different amounts depending on the carrier.
Contributory negligence raises the stakes
North Carolina is one of the last jurisdictions using pure contributory negligence: if you're found even slightly at fault for a crash, you can be barred from recovering anything from the other driver. That legal backdrop makes your own coverage, collision, medical payments, UM/UIM, do more work than it does in comparative-negligence states, and it's part of why the legislature paired the higher minimums with stronger UIM rules.
Nationally, 15.4% of drivers were uninsured in 2023 (Insurance Research Council). North Carolina's mandatory UM coverage means you're never facing that risk bare, but the limits you choose above the floor are still yours to shop.
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Start a North Carolina quote requestWhat affects car insurance rates in North Carolina?
Average annual expenditure for auto insurance in North Carolina was $840 in 2022, per the NAIC, well below the $1,127 countrywide average, though that predates the 2025 minimum-limit increase. This is a historical statewide expenditure benchmark from NAIC 2022 Auto Insurance Database Average Premium Supplement (June 2024). It combines many types of drivers and policies, so it should be used for market context rather than as a current quote estimate.
Insurers apply their filed rating plans to the household in front of them. Two neighbors can see different prices, and the same household can receive a wide range from different companies because each insurer weighs the inputs differently.
Garaging location
Claim frequency, traffic, repair costs, theft and weather exposure vary across North Carolina ZIP codes.
Drivers and record
Age, driving experience, citations, accidents, claims and continuous insurance history can affect price and eligibility.
Vehicle and use
Repair technology, vehicle value, annual mileage, commute and business use change the potential cost of a claim.
Coverage choices
Liability limits, collision, comprehensive, optional benefits and deductibles determine what the policy is being asked to pay.
Household details
Other licensed drivers, additional vehicles and bundling opportunities can change the account-level price.
Company fit
Insurers target different customer profiles. No one company is consistently cheapest for every driver in every territory.
Before you switch
Read the declarations, not only the price.
The declarations page shows drivers, vehicles, limits, deductibles and selected benefits. Match those fields before deciding that one quote is better.
Learn how a quote becomes a policy →How to compare North Carolina car insurance quotes
Keep the drivers, vehicles, limits, deductibles, dates and payment method the same. Then compare the full-term cost and change only one choice at a time.
Compare insurance companies on price, coverage and service
A familiar name is not automatically the best fit. Compare how each insurer sells and services policies, which optional programs it offers and whether it writes your profile in North Carolina. Availability and underwriting can vary by state.
See how Progressive sells and services policies →
See how GEICO sells and services policies →
See how State Farm sells and services policies →
See how Allstate sells and services policies →Company marks link to independent editorial reviews. They do not identify quote partners or a personalized match.
Browse all company reviews →Compare car insurance by North Carolina city
State law applies across North Carolina, but the garaging address can add a more local rating layer. Use a city guide to review ZIP related factors, vehicle details and the quote worksheet, then return here for the state requirement source.
Check the facts
Rules and market data used on this North Carolina page
The minimum-coverage table is paired with a first-party state reference, and the legal authority named in the guide is N.C.G.S. §20-279.21, as amended by S.L. 2023-133 and S.L. 2024-29; North Carolina Department of Insurance. Historical premium context is labeled by year and linked to the underlying publication. These sources do not replace a policy contract or individualized legal advice; rules and forms can change, so confirm current requirements with the regulator, insurer or a licensed professional.
State requirement source
North Carolina DOI — 2025 auto insurance changes ↗Official notice explaining North Carolina's current 50/100/50 minimum liability limits.
Historical market data
NAIC — 2022 Auto Insurance Database Average Premium Supplement ↗Historical statewide average-expenditure data published by the National Association of Insurance Commissioners in June 2024.
Regulator directory
NAIC — State insurance department directory ↗Directory of state insurance regulators for current consumer guidance, licensing checks and complaints.
Checked by Show my rates · Last updated August 3, 2026
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