Car Insurance Requirements in North Carolina (2025)

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.

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 $87 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: