North Carolina Raises Minimum Car Insurance Requirements to Enhance Driver Protection

North Carolina drivers are now subject to higher minimum car insurance coverage requirements as of July 1, 2025, a change aimed at offering greater financial protection in the event of an accident. The state has raised the minimum coverage limits from $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 for property damage to $50,000, $100,000, and $50,000, respectively. This adjustment reflects the growing costs associated with medical care and vehicle repairs, ensuring that victims of accidents have access to more substantial financial support.

In addition to the increased coverage limits, North Carolina has also made uninsured and underinsured motorist coverage mandatory for all liability policies. This means that policyholders will now have protection if they are involved in an accident with a driver who lacks sufficient insurance. The North Carolina Department of Insurance has justified these changes by citing a 22.06% increase in insurance rates necessary to cover the escalating costs of claims.

The implications of these changes are significant for both drivers and the insurance industry. For drivers, the higher minimums and mandatory coverages may lead to increased premium costs but offer enhanced protection in severe accidents. For the insurance industry, these adjustments represent a response to the financial realities of covering accidents in today's economic climate. More information on these changes can be found at https://www.ncdoi.gov.

These updates to North Carolina's car insurance requirements underscore the state's commitment to safeguarding its residents against the financial hardships that can arise from auto accidents. By aligning coverage limits with current economic conditions, the state aims to ensure that all parties involved in an accident have access to the resources they need for recovery.