Car Insurance Requirements in North Carolina (2025)
All North Carolina drivers must carry at least liability car insurance and uninsured motorist coverage.
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Car insurance requirements vary based on the state you live in, so it’s important to understand your state’s minimum coverages. In North Carolina, drivers have to purchase 30/60/25 minimum insurance for bodily injury liability and property damage liability. Plus, drivers must also carry uninsured/underinsured motorist insurance.1
Starting July 1, 2025, these minimum coverages will increase to 50/100/50 for bodily injury and property damage liability. North Carolina’s liability limits are similar to many other states’ liability requirements, but only a handful of states require uninsured/underinsured motorist coverage.
Here’s what you need to know about North Carolina car insurance requirements and how to compare rates to find the cheapest coverage.
North Carolina car insurance requirements
In North Carolina, drivers must obtain minimum amounts of bodily injury and property damage liability coverage. The specific coverage limits required in the state increase on July 1, 2025. The table below reflects the change in requirements:
Bodily injury liability
Bodily injury liability insurance covers someone else’s injuries and medical expenses from accidents you cause. But it doesn’t cover your injuries and medical expenses. It also helps pay for legal costs if someone sues you.
In North Carolina, you need policy limits of at least $30,000 per person and $60,000 for all persons in an accident. This will increase to $50,000 per person and $100,000 per accident on July 1, 2025.
Property damage liability
Property damage liability coverage pays for repairing or replacing someone else’s car or other property when you cause an accident. North Carolina law requires at least $25,000 for property damage liability but will increase this requirement to a minimum of $50,000 per accident on July 1, 2025.
Keep in mind that $25,000 is the absolute minimum requirement. If you cause more than $25,000 in property damage, your insurance won’t cover the excess — you’re financially responsible for the rest.
Uninsured/underinsured motorist coverage
Uninsured/underinsured motorist coverage protects you in case another driver doesn’t have any insurance or enough insurance to pay for your medical expenses or damages.
North Carolina requires uninsured/underinsured motorist coverage policy limits at the same amount as bodily injury and property damage coverage. So if you have $30,000 for bodily injury coverage and $25,000 for property damage coverage, you’ll have those same limits for uninsured/underinsured motorist coverage.2
North Carolina Safe Driver Incentive Plan
Do you need more than state-minimum coverage in North Carolina?
North Carolina requires drivers to always have liability insurance. But you may feel that you need more auto insurance than that. The state’s minimum coverage is just that — a minimum — and insurance professionals generally encourage you to buy more.
Liability insurance covers only other parties’ damages and injuries after an accident you cause. It doesn’t pay for your damages or injuries, which is why you may need more coverage. You can purchase full-coverage insurance, which usually includes liability, collision, and comprehensive coverages. Because this adds more protection, full-coverage insurance usually costs more. If you lease or finance your vehicle, your lender will probably require you to maintain full coverage.
Keep in Mind
If you drive a less valuable car, you might choose liability insurance. On the other hand, if you own an expensive car, especially one that you financed, full coverage may be the better choice.
Penalties for driving without proof of insurance in North Carolina
Generally, if you drive without insurance in North Carolina, you likely won’t face jail time, but you will pay fines:
First offense: $50 fine and a $50 vehicle registration restoration fee at renewal
Second offense in three years: $100 fine and a $50 vehicle registration restoration fee at renewal
Third and subsequent offenses: $150 fine and a $50 vehicle registration restoration fee at renewal
Cheapest liability-only car insurance in North Carolina
The average cost of liability-only insurance in North Carolina is $62 per month. If you have liability insurance and cause a car accident, your policy will pay for the other parties’ damages and injuries.
The cheapest liability-only car insurance company in North Carolina is Progressive, but the table below includes other affordable auto insurers.
Cheapest full-coverage car insurance in North Carolina
The average cost of full-coverage car insurance in North Carolina is $88 per month. Full-coverage insurance usually includes liability coverage, plus collision and comprehensive coverage, which pay for vehicle damages from various situations, even if you’re at fault. It can also include medical payments (MedPay), which covers your injuries from an accident, regardless of fault.
Here are some of the cheapest full-coverage car insurance companies in North Carolina.
Optional car insurance coverages to consider
Beyond liability-only or even full coverage, if you really want a lot of insurance protection, you may consider purchasing optional car insurance coverage, such as:
North Carolina car insurance requirements FAQs
Here’s Insurify’s guide on how to switch your car insurance in a few simple steps. You can also check out the answers to common questions about car insurance in North Carolina below.
Does North Carolina require car insurance?
Yes. To drive legally in North Carolina, you must have 30/60/25 coverage. This translates to $30,000 per person and $60,000 per accident for bodily injury liability, $25,000 per accident for property damage, and uninsured/underinsured motorist coverage equal to your liability coverage. These limits will increase to 50/100/50 on July 1, 2025.
Do you need car insurance to register a car in North Carolina?
Yes. North Carolina requires continuous liability insurance, so before you register a car, you need coverage from an insurer licensed to do business in the state.5
Does insurance follow the car or the driver in North Carolina?
As it does in many states, insurance follows the car in North Carolina. This means if someone borrows your car with your permission, your insurance policy covers them for any damages or injuries they cause while driving it.
Can you insure a car in North Carolina with an out-of-state license?
Yes. But if you established permanent residency in the state, you have 60 days to get a North Carolina driver’s license. In the meantime, you should contact your auto insurer to switch your car insurance liability coverage to meet North Carolina’s minimum requirements.
When did car insurance become mandatory in North Carolina?
Car insurance first became mandatory in North Carolina in 1957 under the Vehicle Financial Responsibility Act.6
What is proof of residency for auto insurance in North Carolina?
Most insurance companies in North Carolina accept documents that confirm your residency, such as a driver’s license, vehicle registration, utility bill, or receipts for personal or property taxes.
What happens if someone who isn’t on your insurance crashes your car in North Carolina?
It depends. North Carolina is an at-fault state, so if the person driving your car has insurance, their policy should cover any damages. If the person driving your car doesn’t have their own insurance policy, your uninsured/underinsured motorist coverage would kick in.
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