In North Carolina, all drivers must carry minimum liability insurance to legally register and operate a vehicle. The state uses a traditional at-fault system, and enforcement is strict—including real-time electronic insurance verification. Below is everything you need to know for 2025, including penalties, proof of insurance rules, and how North Carolina compares to neighboring states.
North Carolina Minimum Auto Insurance (updated)
Minimum Liability Coverage (effective July 1, 2025)
| Bodily injury — per person | $50,000 |
| Bodily injury — per accident | $100,000 |
| Property damage — per accident | $50,000 |
| Underinsured Motorist (UIM) | Now required on all new/renewed policies |
Note: These limits replace the previous $30K/$60K/$25K minimums and are effective for policies issued or renewed on/after July 1, 2025.
Key Driver Impacts
- Inexperienced driver surcharge extended from 3 → 8 years for drivers first licensed on/after July 1.
- Lookback for light speeding & PJC extended 3 → 5 years (applies to offenses on/after July 1).
- Major violation surcharge duration increased to 5 years for many 4+ SDIP-point offenses.
- Estimated statewide premium impact: insurers projected average increase (~5%), adjustments rolling out on renewals.
⚠ Important: Law changes effective July 1, 2025
North Carolina updated rating & coverage rules. If your policy renews on/after July 1, 2025, expect higher minimum liability limits and required UIM coverage. Young/new drivers and anyone with recent minor violations may see larger premium effects.
Read official N.C. DOI notice
Read our article →
Quick action: Review your renewal, check UIM limits, and contact your agent if you need to increase coverage or change deductibles.
Updated: July 1, 2025 — Source: N.C. Department of Insurance. We recommend linking to the official DOI bulletin in any emails or alerts you send to NC visitors.
NC Car Insurance Coverage Minimums
The minimum car insurance coverage required in North Carolina includes $50,000 for bodily injury liability per person, $100,000 per accident for bodily injury, and $50,000 for property damage liability, these were updated on July 1, 2025. These figures represent the minimum protection levels required by law, but many drivers opt for higher policy limits for added security.
- Bodily Injury Liability: $50,000 per person / $100,000 per accident
- Property Damage Liability: $50,000 per accident
This is often referred to as 50/ 100/ 50 coverage. You are also required to carry Uninsured Motorist (UM) coverage.
Car Insurance Realities in North Carolina Cities
North Carolina’s insurance system is still one of the more affordable in the country, even after the July 2025 updates, but your exact rates can vary widely depending on where in the state you live — and drive.
Charlotte: Growth, Congestion, and Higher Claims
As one of the fastest-growing cities in the Southeast, Charlotte’s increasing traffic and construction zones have led to more frequent accidents and rising claim rates. Drivers here may see higher premiums than in other parts of the state — especially for full coverage policies.
Raleigh–Durham: Young Drivers and College Traffic
With multiple universities and a high concentration of younger drivers, the Raleigh–Durham area experiences frequent fender benders and distracted driving claims. Adding collision coverage and higher liability limits is common in this region, especially for newer vehicles.
Wilmington and the Coast: Hurricane Risk
Coastal residents in places like Wilmington face seasonal hurricane threats that can lead to flooding and storm damage. If you live near the coast, comprehensive coverage is highly recommended to protect against non-collision risks like hail, wind, or rising water.
Asheville and the Mountains: Wildlife Collisions
Drivers in Asheville and the surrounding Blue Ridge region often contend with curvy mountain roads and deer collisions — especially at night. Comprehensive coverage may be worth the extra cost in areas where wildlife-related claims are more common.
Optional Coverages in North Carolina
In addition to the minimum insurance requirements, North Carolina also offers optional coverages such as collision and comprehensive insurance. While these are not mandatory, they can provide invaluable protection against vehicle damage that occurs due to accidents or other incidents. Additionally, uninsured and underinsured motorist coverage is highly recommended, ensuring that you are protected in case you collide with a driver who lacks sufficient insurance coverage.
- Collision and Comprehensive Coverage
- Underinsured Motorist (UIM) Coverage
- Medical Payments (MedPay)
- Rental Reimbursement
- Roadside Assistance
Note: If you lease or finance your car, your lender will usually require full coverage.
Real-Time Insurance Enforcement in North Carolina
North Carolina uses a statewide electronic insurance verification system that checks your coverage directly with insurers. This system is tied to your vehicle registration and is updated continuously.
Even a brief lapse in coverage can trigger notification letters, fines, and suspension of your registration.
You can read more about the system at the NC DMV’s Insurance Requirements Page.
North Carolina Penalties for Driving With “No Insurance”
Operating a vehicle without valid insurance in North Carolina can lead to serious consequences, including:
- Fines and civil penalties
- Suspension of vehicle registration
- Suspension of your driver’s license
- Requirement to file an SR-22 form in some cases
Reinstating your registration requires proof of continuous coverage and payment of fees.
NC Proof of Insurance
You must carry valid proof of insurance at all times. This includes:
- Physical insurance card
- Digital proof via insurer app or electronic file
Proof must be shown during vehicle registration, traffic stops, or accidents.
Quick Checklist: What You Need in North Carolina
- ✔️ Minimum 50 /100 /50 liability coverage
- ✔️ Uninsured motorist coverage (required)
- ✔️ Proof of insurance in vehicle at all times
- ✔️ No lapses — system checks continuously
- ✔️ Optional full coverage if financing or leasing
Frequently Asked Questions about North Carolina Car Insurance
What are North Carolina’s minimum car insurance requirements in 2025?
You must carry at least $50,000 in bodily injury liability per person, $100,000 per accident, and $50,000 for property damage. Uninsured motorist coverage is also mandatory.
Does North Carolina verify insurance electronically?
Yes. The DMV verifies insurance status in real time using a system linked to insurers. Lapses are flagged automatically.
What happens if I let my insurance lapse?
You may receive a notice from the DMV, and your registration could be suspended. You’ll need to pay penalties and submit proof of active insurance to reinstate it.
Do I need SR-22 insurance in North Carolina?
Not everyone does. However, if you’re caught driving uninsured or with a revoked license, the state may require you to file an SR-22 for several years.
Staying informed about North Carolina car insurance requirements can help you avoid penalties and ensure compliance with the law. Always consider consulting with an insurance provider to tailor your coverage to fit your specific needs.
Want to compare North Carolina’s laws to nearby states? Check out:
Virginia,
South Carolina,
Georgia, and
Tennessee.