Changes to NC Car Insurance Laws

NC Minimum Bodily Injury Coverage

NC car insurance policies issued or renewed after January 1, 2025 have increased their minimum coverage amounts. Rising costs of healthcare and severity of injuries is leaving too many injury victims paying out of pocket for expenses resulting from a car accident on NC roads. New minimums are as follows:

• $50,000/person (up from $30,000)
• $100,000 per accident (up from $60,000)

NC Minimum Property Damage Coverage

Liability insurance coverage minimums have also been insufficient to repair or replace vehicles damaged in an accident. The state legislature responded with a mandatory increase for property damage coverage in the state of North Carolina; New requirements beginning in 2025:

• $50,000 per accident (up from $25,000)

Mandatory UM/UIM Coverage

New car insurance policies in North Carolina will automatically include the mandatory Uninsured/Underinsured Motorist (UM/UIM) coverage starting July 1, 2025. The policy minimum will match bodily injury and property damage minimums as follows:

• $50,000/person, $100,000/ accident for bodily injury
• $50,000/accident for property damage

Background & Why It Mattered

North Carolina’s existing minimum auto liability insurance was $30,000 per person / $60,000 per accident for bodily injury and $25,000 for property damage. UM/UIM coverage was optional and often subject to “setoffs,” which meant your insurer could reduce UIM payouts by the amount the at-fault motorist’s insurer paid. In this video, Brother Rutter explains how “stacking” works and what it means to you. It’s a complex topic, but critical to maximizing your compensation after a car accident.

Higher Minimums & Mandatory UM/UIM Coverage

As of July 1, 2025, all new or renewed personal auto insurance policies in NC must include UM and UIM coverage. The minimum coverage on these policies must match the following minimums:

• Bodily Injury: $50,000 per person / $100,000 per accident
• Property Damage Liability: $50,000 per accident

Inter‑Policy Stacking Allowed

Under the updated statute, if you own multiple vehicles with separate UM/UIM policies, you may “stack” those limits on a single claim—adding the highest applicable UM/UIM limits from each policy. Previously, stacking was limited and restricted by court rulings. The law now expressly permits stacking and broadens coverage.