Effective July 1st, 2025, there are some new laws that impact auto insurance in North Carolina. Let’s dive into what these changes mean for you as a North Carolina driver. You can watch this quick video to hear about the change or read all about it below.
Increased Mandatory Liability Limits
If you own a car in North Carolina, you’re legally required to have car insurance. The law also sets minimum liability limits that your policy must meet. These limits are increasing for the first time since 1999.
Here’s a breakdown of the current and updated liability limits:
| Coverage Type | Current Limits (1999-2025) | New Limits (Effective July 1, 2025) |
|---|---|---|
| Bodily Injury (Per Person) | $30,000 | $50,000 |
| Bodily Injury (Per Accident) | $60,000 | $100,000 |
| Property Damage | $25,000 | $50,000 |
What Do These Changes Mean for You?
For many North Carolina drivers, this change might not require any action. If you already have higher liability limits, which is common with the guidance of a good independent insurance agent, you’re likely already meeting or exceeding the new requirements. However, if your policy has the current minimum limits, you’ll need to update your coverage to comply with the new law.
Understanding Liability Coverage
Here’s a quick refresher on what these coverages entail:
Bodily Injury
If you injure someone in a car accident, this coverage pays their medical costs, lost wages, sickness, death and rehabilitation expenses and any other damages for which you are found liable. This coverage also pays for pain and suffering that may result from the accident. It is considered to be the liability coverage portion of your policy.
- Bodily Injury Per Person ($50,000): This is the maximum coverage amount for medical expenses for one individual injured in an accident caused by you.
- Bodily Injury Per Accident ($100,000): This is the maximum coverage amount available for all individuals injured in a single accident.
- Property Damage ($50,000): This covers the cost of damages to other vehicles or property caused by you. For example, if you hit a high-value car like a Mercedes-Benz, this higher limit provides more coverage.
Why the Increase?
The cost of medical care and vehicle repairs has risen significantly since 1999. Updating the minimum liability limits ensures that insurance policies better reflect today’s expenses. For instance, an emergency room visit today can cost far more than it did 25 years ago.
What Happens If Your Coverage Isn’t Enough?
If the costs of an accident exceed your policy’s limits, you could be held personally responsible for the remaining amount. This might include:
- Wage garnishment
- Retirement account garnishment
It’s essential to understand the potential financial risks of insufficient coverage.
Next Steps for Drivers
If your current policy has lower limits, now is the time to update it. Even if your policy already meets or exceeds the new requirements, it’s a great opportunity to review your coverage. Higher limits can provide added peace of mind and better financial protection.
At O’Connor Insurance Associates, we’re here to help you navigate these changes and ensure your policy is up to date. Contact us today 704-510-8884 for a complimentary review of your insurance needs.
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O’Connor Insurance Associates is fully licensed to provide personal and commercial insurance solutions for individuals, families and businesses across North Carolina.
We proudly serve families and business owners from our office in Charlotte, North Carolina. As an independent, family-owned agency since 2000, our team works with more than one insurance company to make sure homeowners, drivers, contractors, landscapers, small businesses and other personal and commercial clients receive coverage that fits their real risks.
About the Author
President & Founder
I’m Terry O’Connor, President and Founder of O’Connor Insurance Associates. I grew up in Pennsylvania, earned my bachelor’s degree at Edinboro University and my master’s at Gannon University, and in 1998 I traded snow for sunshine and moved to Charlotte. In January 2000, I started this agency on my own because I wanted to help people protect what matters most to them. More than two decades later, we’ve grown into an independent agency serving families and businesses across North Carolina, and we’ve been recognized as an IIABA Best Practices Agency every year since 2010, a distinction held by fewer than 1% of agencies nationwide.
I’ve seen firsthand how the right protection can change a family’s or a business owner’s life, and that’s why I lead with empathy, education and honest advice. As an independent agent, I work for you, not for one insurance company. I take the time to explain your options in plain language, and when you call our office, you reach a real person who knows your account.
Outside the office, you’ll usually find me outdoors hunting or fishing, or on the mat coaching wrestling as an assistant varsity coach at Mallard Creek High School. I’m also a proud supporter of the arts, usually in the front row cheering on my daughter in local theater productions. I’d be glad to review your coverage with you. Call me at 704-510-8884 or email terry@oianc.com.
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