New Auto Liability Minimums Take Effect This Year in North Carolina

This year, the minimum automobile liability coverage requirements in North Carolina will jump to 50/100/50, among the highest minimums in the country.

The change is the result of Senate Bill 452, approved in 2023 and which became law last year. The higher minimums – up from the 30/60/25 that had been in place for years – will raise typical motorists’ premiums roughly $50 a year, according to news reports, but will provide higher payouts to injured parties.

The law, effective July 1, 2025, makes North Carolina one of only a handful of states with minimums that high.

Even with the increase, North Carolina continues to rank in the middle of the pack for auto insurance rates, well below the most expensive states of Florida, Louisiana, New York and Nevada, at least for full coverage, according to BankRate and other price-tracking surveys.

State insurance officials have said North Carolina trial lawyers had pushed for the higher minimums.

The law also changed uninsured motorist coverage requirements. Starting this year, an insured, injured driver will be able to collect the full limit from his or her uninsured policy, plus the payout from the at-fault driver’s liability coverage. Under previous state law, insurers could deduct the at-fault liability amount from the uninsured coverage payout.

SB 452 also set some parameters. Uninsured coverage will not automatically pay the policy limit: Carriers can consider present and future medical expenses, lost wages, and other costs, the Ward & Smith law firm noted.

The effective date of the new minimums has created some confusion. The final version of the 2023 bill and the North Carolina statute note the law was to take effect Jan. 1 of this year. But SB 319, approved last year, revised the effective date to July 1, and the change received little press attention. Joe Stewart, vice president of government affairs for Big I of North Carolina, explained that his association had lobbied for the revised date to give more time for agents, insurers and the North Carolina Rate Bureau to make adjustments.

Update: This article contains new information about the effective date of the minimum liability requirements.