North Carolina Raises Minimum Car Insurance Requirements to Enhance Driver Protection

North Carolina drivers are now required to carry higher minimum amounts of car insurance following a recent update to the state's insurance laws. 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. The adjustments are a response to the escalating costs associated with medical care and vehicle repairs, aiming to provide better financial protection for all parties involved in auto accidents.

The North Carolina Department of Insurance has indicated that these changes come alongside a 22.06% rate increase approved for auto insurers to cover the rising costs. While this may lead to higher premiums for drivers, the enhanced coverage is expected to offer greater security in the event of severe accidents, particularly for those not at fault or involved with uninsured motorists.

For more information on how these changes might affect your policy, visiting https://www.ncdoi.gov could provide additional insights and resources. These updates underscore the state's commitment to safeguarding its drivers against the financial aftermath of auto accidents, reflecting a broader trend towards higher insurance standards nationwide.