Auto Insurance Requirements in North Carolina
The minimum insurance requirements for NC are 50/100/50 in liability insurance, as of Jan. 1, 2025.
You must also have matching uninsured and underinsured motorist coverage to drive legally in North Carolina.
Drivers who don't want to buy insurance can prove they're able to pay for damage they cause in an accident in a few different ways, including a bond or cash deposit.
If you don't have an insurance policy or satisfy one of the alternatives, you may have to pay a fine, have your license suspended or serve jail time.
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North Carolina auto insurance requirements
- Bodily injury liability (BI): $50,000 per person and $100,000 per accident
- Property damage liability (PD): $50,000 per accident
- Uninsured and underinsured motorist bodily injury (UM/UIMBI): $50,000 per person and $100,000 per accident
- Uninsured and underinsured motorist property damage (UM/UIMPD): $50,000 per accident
What is the new insurance law in NC?
On Jan. 1, 2025, North Carolina raised its minimum car insurance requirements.
The increase makes North Carolina's requirements some of the highest in the country.
The bodily injury liability requirement went up to $50,000 per person and $100,000 per accident. This covers the medical bills of other drivers and their passengers if you cause a crash. Prior to the increase, North Carolina drivers only needed $30,000 per person and $60,000 per accident.
The property damage liability requirement increased to $50,000 per accident. This pays to repair or replace another driver's car, building or structure you hit in an accident. The previous requirement was $25,000 per accident.
The new North Carolina auto insurance laws also raised uninsured and underinsured motorist coverage limits to match the new liability limits.
Minimum liability insurance in NC
North Carolina car insurance rules require drivers to have bodily injury and property damage liability insurance along with uninsured and underinsured motorist coverage.
Bodily injury
Property damage
Uninsured motorist
Bodily injury liability pays the medical bills of anyone you injure in an accident. This includes other drivers, their passengers or pedestrians.
NC car insurance laws require you to have at least $50,000 of bodily injury liability per person and $100,000 per accident. However, you can choose higher limits, with some companies offering up to $1 million in coverage.
Bodily injury
Bodily injury liability pays the medical bills of anyone you injure in an accident. This includes other drivers, their passengers or pedestrians.
NC car insurance laws require you to have at least $50,000 of bodily injury liability per person and $100,000 per accident. However, you can choose higher limits, with some companies offering up to $1 million in coverage.
Property damage
Property damage liability covers the cost of damage you cause in an accident, whether it be to a building, another car or a structure like a pole or fence.
North Carolina insurance laws require you to have at least $50,000 of property damage liability coverage. Most companies offer the option to choose higher limits if you'd like.
Uninsured motorist
There are two parts of uninsured and underinsured motorist coverage: bodily injury (UMBI) and property damage (UMPD).
- Uninsured and underinsured motorist bodily injury coverage pays your medical bills if you're hit by a driver who either doesn't have insurance or whose limits aren't high enough to cover your bills.
- Uninsured and underinsured motorist property damage coverage pays to fix or replace your vehicle if a driver with no insurance or not enough coverage crashes into you.
Uninsured and underinsured motorist coverages have the same minimum limits as regular liability insurance.
You can increase your limits, but you can't choose limits higher than your regular liability limits. For example, say you have $100,000 of bodily injury liability per person. In this case, you can get up to $100,000 of uninsured and underinsured motorist bodily injury per person, but not more.
Cheapest companies for minimum insurance coverage in NC
To find the cheapest liability-only car insurance in NC, ValuePenguin editors gathered over 442,000 quotes from seven top companies across 856 North Carolina ZIP codes. Full methodology.
Does minimum liability car insurance in NC come with enough coverage?
Even though North Carolina has some of the highest required limits in the country, minimum coverage still may not be enough insurance for most people.
That's because minimum liability coverage doesn't include collision or comprehensive coverage. These coverages pay to repair or replace your car after many types of damage, regardless of whose fault it is.
Lenders typically require you to have collision and comprehensive coverage if you have a car loan or lease. You should also consider adding these coverages if your car is newer than 8 years old or worth more than $5,000.
Recommended car insurance coverage in North Carolina
A minimum insurance policy in North Carolina helps pay for injuries and damage you cause in an accident. However, you may end up with a sizable bill for your own injuries and car repairs.
Many North Carolina drivers can benefit from adding collision, comprehensive and medical payments coverage to their policy.
Collision coverage pays for damage to your car after a crash, whether you hit another car or run into a street lamp.
Your coverage limit is based on the value of your vehicle. You'll first need to pay a deductible, ranging from $50 to $2,000, before your insurance company pays the rest of the bill.
Comprehensive coverage pays for your repairs if your car is vandalized, stolen or damaged. It also covers "acts of God," like hail or a fallen tree branch.
Comprehensive coverage also has a deductible, which you'll pay before your insurance company covers any repairs.
Medical payments coverage, or MedPay, pays the medical bills of you and your passengers after an accident. If someone insured on your policy dies in the accident, MedPay also covers funeral expenses.
Depending on the insurance company, your coverage options might range from $500 to $10,000.
If you have health insurance, you can also use that coverage to help pay your medical bills. However, MedPay can help cover your health insurance copay or deductible, if you haven't reached it yet.
In addition, most health insurance plans won't cover funeral costs, and some won't cover injuries resulting from a car accident.
Alternatives to the NC car insurance requirements
North Carolina requires all drivers to show they're able to cover a minimum amount of damage if they cause an accident. An insurance policy is the easiest way to do this, but there are four other options for people who don't want to buy an insurance policy.
Cash/security deposit: You may deposit $150,000 with the State Treasurer using cash or another type of security, such as a government bond or note. If you cause an accident, your deposit will pay for any injuries or damage you cause.
Surety bond: You can buy a surety bond worth at least $150,000, which guarantees you'll pay for any expenses following an accident you cause. If you can't pay for the damage, the surety company will pay on your behalf and collect the difference from you later.
Real estate bond: This type of bond is backed by a piece of property and must be approved by a county superior court clerk. It guarantees you'll pay up to $150,000 following any car accident you cause.
The bond must be signed by two other individuals who own real estate in North Carolina with a combined equity of at least $300,000. If you can't pay for damage you cause, the property will be sold to cover the accident expenses.
Self-insurance: If you own or lease at least 26 cars, you may apply with the government to become what's called a self-insurer.
You must provide documents that prove you have enough money to pay for damage you cause in an accident. If any of your cars are in an accident, you'll need to pay for the damage yourself.
Frequently asked questions
What's the minimum policy coverage in NC?
North Carolina requires all drivers to have at least $50,000 of bodily injury liability coverage per person and $100,000 per accident along with $50,000 of property damage liability coverage. You must also have matching uninsured and underinsured motorist coverage.
What's the underinsured motorist coverage law in NC?
North Carolina drivers need at least $50,000 of uninsured and underinsured motorist bodily injury (UM/UIMBI) coverage per person and $100,000 per accident. Your policy must also have $50,000 of uninsured and underinsured motorist property damage (UM/UIMPD) coverage.
What's the penalty for driving without insurance in North Carolina?
Driving without insurance in North Carolina can result in a suspended license, fines of $50 to $150 and even jail time for repeat offenders.
Is NC a fault or no-fault state?
North Carolina is an at-fault state. This means that you can sue another driver for pain and suffering after an accident. You also aren't required to have personal injury protection or medical payments coverage, which pays your own medical bills after an accident, regardless of whose fault it is.
Methodology
To find the cheapest minimum liability car insurance in NC, ValuePenguin collected thousands of rates from the largest insurance companies in North Carolina. Rates are for a 30-year-old single man with good credit and a clean driving record who owns a 2015 Honda Civic EX.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
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