North Carolina’s minimum required auto insurance coverage has changed. Two updates matter most for everyday drivers: higher liability limits and a new requirement that underinsured motorist coverage be included on policies. Even if you don’t plan to change carriers, it’s a good time to review your declarations page so you understand what your policy will (and won’t) pay after a crash.
1) New minimum liability limits
For policies issued or renewed on/after July 1, 2025, the minimum liability coverage increases to 50/100/50:
- $50,000 bodily injury per person
- $100,000 bodily injury per accident (total)
- $50,000 property damage per accident
These higher limits can reduce the chance that you (or someone who hits you) will run out of coverage before medical bills and repairs are paid. If you carry only the minimum, consider whether your savings and assets would be protected in a serious wreck.
2) Uninsured motorist (UM) stays required
UM helps if you’re hit by a driver who has no liability insurance (or in some situations, a hit-and-run). It can help pay for things like medical expenses, lost income, and vehicle damage—up to the UM limits you selected.
Starting with July 1, 2025 renewals, UM minimum limits generally align with the new liability minimums. Your insurer can confirm the exact limits on your policy.
3) Underinsured motorist (UIM) becomes mandatory
UIM applies when the at-fault driver has insurance, but their limits are too low to cover your total losses. Since July 1, 2025, new and renewed policies have required UIM (you can usually choose higher limits).
4) “Stacking” may increase available UM/UIM coverage
“Stacking” generally means combining UM/UIM limits from more than one insured vehicle/policy to increase the total coverage available for a claim. If your household insures multiple vehicles, ask your agent how stacking applies to your policies and whether your limits are consistent across vehicles.
Quick checklist before your next renewal
- Look at your liability limits and consider whether the minimum is enough for your household’s risk.
- Confirm your UM and UIM limits and whether stacking applies.
- Ask your agent how these changes may affect your premium at renewal.
Some changes to keep in mind
- Keep a clean driving record—some surcharges and lookbacks may last longer.
- Newly licensed drivers may face an “inexperienced driver” surcharge for longer than before.
- Some serious violations may trigger longer-lasting surcharges.
- Some minor speeding and Prayer for Judgment Continued (PJC) lookback periods may extend, meaning older tickets can affect rates longer.
Bottom line: the July 1, 2025 updates are a reminder that “minimum coverage” may not match real-world costs after a serious crash. Take a few minutes before renewal to review your limits, understand your UM/UIM protections, and decide whether your current coverage still fits your needs and budget.
