Auto Insurance Law Changes for North Carolina – January 2025

A digest of changes in insurance law that are going into effect next year:

• Bodily injury minimum liability limits will increase from $30,000 per person, $60,000 per accident to $50,000 per person, $100,000 per accident.
• Property damage minimum liability will increase from $25,000 to $50,000
• Underinsured motorists coverage (not just uninsured) will become mandatory on all policies ($50,000/$100,000/$50,000 minimum) AND will be based on your actual limits, NOT limits minus what the underinsured driver has.
  • For example now, if you have $100K and the at-fault driver has $50K, you can recover $50K
  • With the insurance law change, if you have $100K, you can recover $100K regardless of what the other driver has
• At-fault accidents, minor violations, and ALL speeding tickets will still be chargeable for 3 years; however MAJOR violations (DWI, vehicular homicide, hit-and-run, driving while revoked, and any other non-speeding violation 4 SDIP points or higher) will be chargeable for five (5) years.
• The inexperienced driver surcharge will change from three years to eight (8) years. Drivers with at least three years experienced and NO at-fault accidents or moving violations will be entitled to a discount.

TLDR: as of 2025 NC state minimums going to 50/100/50 liability & UIM (not subject to other party deduction); major violations will now charge points for 5 years; inexperienced drivers will pay extra for 8 years.