Short answer: North Carolina requires 50/100/50 liability for policies issued or renewed on or after July 1, 2025: $50,000 per person and $100,000 per accident for injuries, and $50,000 for property damage. The old minimum was 30/60/25. Uninsured motorist coverage is required, and underinsured motorist coverage is now included in all new or renewed policies.
The 2025 change
The North Carolina Department of Insurance announced that, as a result of recent legislation, minimum limits increased for all new or renewed policies on or after July 1, 2025:
| Coverage | Before July 1, 2025 | Policies new or renewed on or after July 1, 2025 |
|---|---|---|
| Bodily injury, per person | $30,000 | $50,000 |
| Bodily injury, per accident | $60,000 | $100,000 |
| Property damage | $25,000 | $50,000 |
North Carolina now has some of the highest minimum limits in the country. By October 2026, almost every active annual or six-month policy has renewed under the new rules. If yours hasn't, check your limits.
UM and UIM
Uninsured motorist coverage is required in North Carolina. The bigger change is underinsured motorist coverage: according to the NCDOI, beginning July 1, 2025, UIM is included in all new or renewed policies. Before that, policies with minimum limits didn't include it.
UIM matters because a driver can be fully legal and still not carry enough coverage to pay for a serious injury.
Contributory negligence: the rule that makes your own coverage critical
North Carolina is one of the few places that still follows contributory negligence. Under this rule, if you're found even slightly at fault for an accident, you can be barred from recovering from the other driver, with narrow exceptions such as the "last clear chance" doctrine. Most states, by contrast, reduce your recovery by your share of fault.
That's why your own coverages, including collision, medical payments and UM/UIM, carry more weight in North Carolina than in most states.
Lapses are expensive
North Carolina requires continuous liability coverage on any registered vehicle. Insurers notify the Division of Motor Vehicles when a policy ends. If coverage lapses, you can face civil penalties, registration revocation and restoration fees. Turn in your plates before canceling insurance on a vehicle you're no longer driving.
New drivers pay longer
The 2025 law also expanded the inexperienced operator surcharge. For drivers first licensed on or after July 1, 2025, the surcharge applies until they have eight years of driving experience, up from three, according to the NCDOI. Families adding teen drivers should plan for this.
Is 50/100/50 enough?
The new minimum is much stronger than the old one, but it's still a floor:
- A serious injury with surgery and lost income can exceed $50,000 per person.
- Multi-vehicle crashes can exceed $100,000 per accident.
- Homeowners and people with savings may want limits that qualify for an umbrella. See how much umbrella insurance do I need.
Common scenarios
Your policy last renewed in May 2025. It renewed under the old 30/60/25 rules. Your next renewal should move you to 50/100/50 with UIM included, likely with a higher premium.
You're hit by a driver who ran a stop sign, but you were going slightly over the speed limit. Under contributory negligence, the other insurer may argue you were partly at fault and deny your claim. Your own collision and UIM coverage can matter.
Your teenager gets a license in 2026. Expect the inexperienced operator surcharge to apply for up to eight years.
Key terms
- Contributory negligence: a rule that can bar recovery if you're at all at fault.
- Last clear chance: an exception that can allow recovery when the other driver had the final opportunity to avoid the crash.
- Inexperienced operator surcharge: an added premium for drivers with limited experience.
- UIM: pays when the at-fault driver's limits are too low.
Bottom line
North Carolina's 50/100/50 minimum and built-in UIM are a real improvement, but contributory negligence still makes your own coverage essential. Review your limits, keep collision and medical payments, and budget for new drivers. Compare states in our car insurance minimums by state table.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in North Carolina and auto insurance.
Frequently asked questions
What is the minimum car insurance in North Carolina?
50/100/50 liability for policies issued or renewed on or after July 1, 2025.
What were North Carolina's old minimums?
30/60/25, before July 1, 2025.
Is underinsured motorist coverage required in North Carolina?
Beginning July 1, 2025, UIM is included in all new or renewed policies, according to the NCDOI.
What is contributory negligence?
A rule that can bar you from recovering from the other driver if you're even slightly at fault.
What happens if my North Carolina insurance lapses?
You can face civil penalties and registration revocation. Surrender your plates before canceling.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.