North Carolina Just Raised the Minimum Auto Liability Limits: Here’s What Our Customers Need to Know

Scott Todd
Jul 21
4 min read

Effective Date: July 1, 2025.North Carolina has officially increased the state-mandated minimum auto liability limits. If you carry the old minimums (30/60/25), expect your coverage to step up automatically at renewal to meet the new law. Read on so you’re not surprised when your policy renews—or your premium changes. NC DOI Farm Law NCRB Bankrate

What Changed?

Old minimum (before July 1, 2025):

$30,000 bodily injury per person
$60,000 bodily injury per accident
$25,000 property damage per accident

New minimum (for all new and renewed policies on or after July 1, 2025):

$50,000 bodily injury per person
$100,000 bodily injury per accident
$50,000 property damage per accident

That’s what people call “50/100/50.” It’s a significant jump—especially that $50,000 property damage limit, one of the highest mandated PD minimums in the country. NC DOI NCRB Bankrate Insurance Journal

Will My Policy Change Automatically?

Short answer: Yes—at renewal. If your current North Carolina auto policy was written before July 1, 2025 and is still on the old minimums, you’ll be brought up to at least 50/100/50 when the policy renews. Carriers are required to apply the new limits on all policies issued or renewed on or after July 1, 2025. Expect a premium adjustment when that happens. NC DOI Farm Law NCRB

Why Did the State Raise the Limits?

Medical care, car repairs, and lawsuit exposure have all climbed. The prior 30/60/25 limits were increasingly out of step with real-world claim costs. Raising the minimums improves protection for people injured in crashes and reduces the risk that a basic policy leaves big bills unpaid. State regulators, industry analysts, and legal advocates have all pointed to rising costs and the need for stronger financial protection as key drivers behind the change. NC DOI Bankrate Insurance Journal

What Else Is Changing? (It’s Not Just the Liability Limits)

1. Underinsured Motorist (UIM) Coverage Becomes Standard

Previously, very low-limit policies often did not include UIM. Going forward, UIM will be included in all new or renewed NC auto policies—important protection if you’re hit by someone who doesn’t carry enough liability insurance to cover your injuries. NC DOI Farm Law Bankrate

2. Inexperienced Operator Surcharge Extended

If you’ve got new drivers in the household: the surcharge period for drivers licensed on or after July 1, 2025 stretches from 3 years to 8 years (rates taper down after the first three). Plan for that in your budget. NC DOI Farm Law Bankrate

3. Other Rating & Rule Tweaks

Legislative updates (S.L. 2023-133 and S.L. 2024-29, originally from Senate Bill 452 and later technical corrections) reshaped several auto rating rules and confirmed the July 1, 2025 effective date for the new limits and related policy revisions. NCRB Bankrate Insurance Journal

How Much More Will This Cost?

Premium impact varies—vehicle type, driver history, territory, and broader rate filings all matter. Early market analyses suggest that stepping from 30/60/25 up to 50/100/50 doesn’t always produce a dramatic jump by itself; for many drivers it’s modest compared with the protection gained. That said, rate pressure from surcharges, inflation in repair and medical costs, and insurer pricing changes could combine to make your renewal higher than last year. Let’s review your specific situation before you renew. NC DOI Bankrate Insurance Journal

Is the New Minimum Enough?

Here’s the blunt truth: State minimum = legal, not necessarily safe. If you cause a serious crash with multiple injuries or total a newer vehicle (or two), even 50/100/50 can run out fast. Many households—especially those with a home, savings, or business assets to protect—elect higher limits such as 100/300/100, 250/500/100, or even split limits paired with an umbrella liability policy. If you’re insured with only the minimum and the damages exceed it, your personal assets and future earnings can be exposed. Let’s look at what you stand to lose versus the incremental cost of stronger coverage. (Contact us for a custom quote.) Bankrate Insurance Journal

What You Should Do Now

1. Check your current limits. If you’re still at 30/60/25, you’ll be bumped to 50/100/50 at renewal—get in front of the price change and discuss options. NC DOI Farm Law

2. Review household drivers. New or younger drivers may trigger the extended inexperienced operator surcharge; budgeting early helps avoid sticker shock. NC DOI Farm Law Bankrate

3. Consider going higher than the minimum now. Since your policy is changing anyway, it’s a smart time to right-size your liability and discuss umbrella coverage. Bankrate Insurance Journal

4. Confirm your UM/UIM protection. With UIM now included going forward, make sure your limits align with your liability limits and risk tolerance. NC DOI Farm Law Bankrate

Quick FAQ

Do I need to call my carrier to raise to 50/100/50? No—the law forces the change on any policy issued or renewed on/after July 1, 2025. But if you want higher limits (recommended), call us before renewal. NC DOI Farm Law NCRB

My renewal came in higher—why? Part of it is the higher required limits; part may be broader rate changes, driver surcharges, or inflation in claim costs. We’ll help you sort what’s what. NC DOI Bankrate Insurance Journal

Can I avoid the change by rewriting early?

The regulatory guidance applies the new limits to policies issued or renewed on or after July 1, 2025, and industry bulletins instruct carriers not to endorse/cancel and rewrite earlier solely to dodge the change (except at insured request under normal short-rate rules, and never before July 1, 2025). At this point—after July 1—it’s baked in. NCRB

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