Valued Customer & Future Customers,
We want to inform you about recent changes made by the North Carolina legislature that will impact your auto insurance policy. While these changes don’t go into effect until July 1st, 2025, we wanted to let you know about these changes now to prepare you for how they will affect your policy. Please read this important update carefully.
What has changed?
The NC legislature has increased the minimum liability limits for auto insurance coverage across the state. These changes are mandatory for every auto policy in North Carolina, regardless of your insurance provider.
Key Changes
- Bodily Injury Coverage: The minimum per-person coverage has been increased from $30,000 to $50,000, and per-accident coverage from $60,000 to $100,000.
- Property Damage Coverage: The minimum requirement has been raised from $25,000 to $50,000.
- Uninsured/Underinsured Motorist Bodily Injury Coverage: Both are now mandatory at a minimum of $50,000 per-person and $100,000 per accident.
- Uninsured Motorist Property Damage Coverage: The minimum requirement has been raised from $25,000 to $50,000.
- Inexperienced Drivers: Drivers that obtain their license after 7/1/25 will be considered inexperienced for 8 years (up from 3).
- Violation History: Drivers with 4+ point violations will be charged for 5 years (up from 3) with the exception of speeding violations.
Why the Change?
It’s important to note that neither the insurance commissioner, insurance companies, nor agents requested these changes. These changes were mandated by the North Carolina General Assembly as a result of the increased costs of vehicles and medical expenses. While the increase in liability limits does provide more coverage for policyholders, they will also lead to increased insurance rates.
What Does This Mean for You?
After 7/1/25, when your auto insurance policy renews it will provide enhanced coverage to better protect you in case of accidents. However, please be aware that this improvement in coverage may result in higher insurance premiums.
