State
North Carolina car insurance requirements and laws
North Carolina raised its minimums to 50/100/50 on July 1, 2025, with matching UM and UIM coverage. It is one of the few contributory negligence states.
Minimum coverage
| Liability limits | 50/100/50 |
|---|---|
| Bodily injury, per person | $50,000 |
| Bodily injury, per accident | $100,000 |
| Property damage | $50,000 |
| Other required coverage | Uninsured motorist 50/100 bodily injury and $50,000 property damage ($100 deductible); Underinsured motorist equal to your UM limits (for policies issued or renewed on or after July 1, 2025; previously 30/60/25) |
Rules
| Fault system | At-fault — the driver who causes a crash (through their liability insurer) pays for the other side's injuries and damage |
|---|---|
| PIP required | No |
| Uninsured motorist required | Yes — uninsured and underinsured motorist coverage are both required; limits automatically equal your highest bodily injury liability limits (up to $1 million), and you can choose other limits but not below 50/100/50 (G.S. 20-279.21) |
| Negligence rule | Contributory negligence — if you are even slightly at fault, you can be barred from recovering |
| Penalty for driving uninsured | Driving uninsured is a Class 3 misdemeanor (G.S. 20-313); a coverage lapse brings a DMV civil penalty of $50, $100 or $150 depending on prior lapses, and the registration is revoked if you still lack coverage (G.S. 20-311) |
| Time limit to sue | 3 years (personal injury and property damage; G.S. 1-52) |
Costs and context
| Average cost | $925 average annual expenditure (NAIC, 2023 data) |
|---|---|
| Uninsured drivers | About 1 in 8 drivers (11.8%, Insurance Research Council, 2023) |
Regulator
| Insurance regulator | North Carolina Department of Insurance |
|---|---|
| Consumer hotline | 855-408-1212 |
| Website | ncdoi.gov |
| Address | 3200 Beechleaf Court, Raleigh, NC 27604 (mail: 1201 Mail Service Center, Raleigh, NC 27699-1201) |
Minimum car insurance requirements
North Carolina made one of the largest changes in the country in 2025. Under Session Law 2023-133, policies issued or renewed on or after July 1, 2025 must carry at least 50/100/50 liability, up from 30/60/25, and both uninsured and underinsured motorist coverage became mandatory at matching limits (G.S. 20-279.1, 20-279.21). A policy in force before that date kept its old limits until renewal. Compare states with the state car insurance requirements lookup.
| Coverage | Minimum before July 1, 2025 | Minimum from July 1, 2025 |
|---|---|---|
| Bodily injury liability, per person | $30,000 | $50,000 |
| Bodily injury liability, per accident | $60,000 | $100,000 |
| Property damage liability | $25,000 | $50,000 |
| Uninsured motorist bodily injury | 30/60 | 50/100 |
| Uninsured motorist property damage | $25,000 | $50,000 ($100 deductible) |
| Underinsured motorist | Only on policies above the old minimums | Required, equal to your UM limits |
UM and UIM limits automatically match the highest bodily injury liability limits on any vehicle on your policy, up to $1 million. You can choose different limits, but not below the 50/100 minimum.
The UIM change. The 2025 law also changed how underinsured coverage pays. A vehicle is now "underinsured" when the at-fault driver's liability limits are less than your total damages, and your UIM no longer starts only after the difference between their limits and yours. Suppose another driver with 50/100 limits causes $120,000 in damages to you and you carry 100/300 UIM. Their insurer pays $50,000, and your UIM can pay the remaining $70,000 instead of being reduced by the $50,000 already paid. See uninsured and underinsured motorist coverage explained.
What the minimums mean in practice. If you cause a crash and the other driver has $40,000 in medical bills, a 50/100/50 policy now covers it in full; under the old 30/60/25 minimums, $10,000 could have come from you. Serious crashes and new vehicles can still exceed the new limits. how much liability coverage do you need? can help.
Fault system and what it means after a crash
North Carolina is an at-fault state. The driver who causes the crash is responsible for the other side's medical bills, lost wages, pain and suffering and vehicle damage, paid by their liability insurer up to its limits (no-fault vs at-fault states).
North Carolina is one of the last states to follow pure contributory negligence: if you are found even slightly at fault, the other side can argue you are barred from recovering anything from them. That makes your own coverage, especially collision, medical payments and UM/UIM, more important than in comparative fault states (comparative vs contributory negligence). Most injury and property damage lawsuits must be filed within three years (G.S. 1-52; statutes of limitations for car accident claims).
Optional coverage worth considering here
- Higher UM/UIM limits. The Insurance Research Council estimates 11.8% of North Carolina drivers were uninsured in 2023, below the national 15.4%. Because UM/UIM now tracks your liability limits, raising liability raises both.
- Medical payments coverage. North Carolina has no PIP; medical payments coverage pays your own medical bills regardless of fault, which matters under contributory negligence.
- Collision. If you share any blame for a crash, you may not be able to recover from the other driver, so collision may be your only way to repair your car (collision coverage explained).
- Comprehensive for hurricanes, flooding and deer collisions (hail, flood and storm damage: filing a comprehensive claim).
What drives rates in North Carolina
The NAIC puts North Carolina's average annual expenditure at $925 in 2023, below the national average of $1,282 (What NAIC auto insurance data measures). That figure predates the 2025 minimum increase, which raised the price of minimum policies.
North Carolina's rates are set through a regulated process: the North Carolina Rate Bureau files rates for the industry with the Department of Insurance, and drivers' records feed into the Safe Driver Incentive Plan, which adds surcharge points for violations and at-fault crashes (surcharge, how car insurance rate approval works). Hurricanes and coastal flooding, deer strikes, and growth in the Charlotte and Raleigh areas push claims up (Why your ZIP code changes your car insurance price).
Penalties for driving uninsured
Operating, or allowing someone to operate, a registered vehicle without the required insurance is a Class 3 misdemeanor (G.S. 20-313). When the Division of Motor Vehicles learns that a policy has ended, it asks the owner to explain within 10 days. An owner who had a lapse pays a civil penalty of $50 for a first lapse in three years, $100 for a second and $150 for a third or later; if the owner still has no coverage, the registration is revoked until coverage is obtained (G.S. 20-311). See penalties for driving without insurance.
SR-22 and high-risk drivers
North Carolina's DMV generally asks for a state-specific certificate of insurance (Form DL-123), filed by your insurer, rather than an SR-22 when you restore a license after a suspension. Drivers who are refused coverage can still get a policy because insurers can place high-risk drivers in the North Carolina Reinsurance Facility, which keeps coverage available (residual market, high-risk car insurance: options when insurers say no, SR-22 insurance explained).
Insurers with a strong presence in North Carolina
North Carolina Farm Bureau Insurance, based in Raleigh, is one of the state's largest auto insurers (Farm Bureau insurance: membership, eligibility and how it works). State Farm, Erie Insurance, GEICO, Progressive, Allstate and Nationwide are also major writers (regional car insurers: when smaller carriers can beat the giants).
Where to get help
The North Carolina Department of Insurance regulates insurers and helps consumers with claims and coverage problems. Call 855-408-1212 (toll free), visit ncdoi.gov, or write to 1201 Mail Service Center, Raleigh, NC 27699-1201; the office is at 3200 Beechleaf Court, Raleigh. how to file a complaint against a car insurance company explains what to include. Lapse penalties and license restoration are handled by the Division of Motor Vehicles. Because contributory negligence can decide a case, consult a licensed North Carolina attorney about any injury claim where fault is disputed.
Sources
- ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_20/GS_20-279.1.html
- ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_20/GS_20-279.21.html
- ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_20/GS_20-311.html
- ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_20/GS_20-313.html
- ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_1/GS_1-52.html
- ncdoi.gov/
- ncaj.com/news/north-carolina-auto-insurance-law-updates-effective-july-1-2025
- iii.org/fact-statistic/facts-statistics-uninsured-motorists
- iii.org/table-archive/21247
Requirements were checked against these sources on the review date below. Laws change - confirm with the state insurance regulator or motor vehicle agency.
Profile last reviewed October 4, 2026