North Carolina Raises Minimum Car Insurance Requirements to Enhance Protection

North Carolina drivers are now required to carry higher minimum amounts of car insurance coverage following a recent update to the state's insurance mandates. Effective July 1, 2025, the new minimums are set at $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $50,000 for property damage. This marks a significant increase from the previous requirements of $30,000, $60,000, and $25,000, respectively.

In addition to the increased coverage limits, North Carolina has also made uninsured and underinsured motorist coverage mandatory for all liability policies. This change ensures that policyholders hit by drivers without sufficient insurance will have their own policies to fall back on, up to the policy's limits. These adjustments come as a response to the escalating costs of medical care and vehicle repairs, aiming to provide better financial security for those involved in accidents.

The North Carolina Department of Insurance has highlighted that these changes are part of a broader effort to address the financial challenges posed by rising accident-related expenses. A 22.06% insurance rate increase has been enacted to accommodate these higher coverage limits, reflecting the growing costs insurers face. While this may lead to higher premiums for policyholders, the enhanced coverage is expected to offer greater protection in the event of severe accidents, particularly for those not at fault or involved in collisions with uninsured drivers.

For more information on how these changes might affect your policy, visiting the North Carolina Department of Insurance website can provide additional resources and guidance. These updates represent a pivotal shift in North Carolina's approach to auto insurance, prioritizing the safety and financial well-being of its drivers and accident victims.