What Are North Carolina’s Minimum Auto Insurance Requirements, and Are the Minimums Enough? 

Carrying auto insurance that meets state minimums may satisfy the law, but it may not be enough financially. The Austin Agency can help you find coverage options that fit your situation.

Understanding the State’s Minimum Limits

Auto insurance in North Carolina must include liability coverage and uninsured motorist coverage. The required minimums apply as follows:

• Bodily injury per person: This may cover one person’s injury-related expenses when you are at fault in an accident, and policies are required to include at least $50,000 in coverage.
• Bodily injury per accident: This total can apply to all injury-related costs across everyone involved in a single accident. The minimum coverage level in North Carolina is $100,000.
• Property damage: This may be used to repair or replace another person’s vehicle or property. Your policy must include at least $50,000 worth of coverage for property damage liability.

The aforementioned minimum requirements apply to policies issued or renewed after July 1, 2025. Uninsured and underinsured motorist coverage is also required at these same levels and can help cover your costs if the at-fault driver carries no insurance.

Why the Minimum Requirements Often Fall Short

Medical and repair costs can add up fast, especially in growing metros like Charlotte, and a single at-fault accident can exhaust your property damage limit before all costs are covered. Any remaining balance may become your personal responsibility and can affect your wages or assets.

In addition to securing liability limits that exceed minimum requirements, you may also want to consider investing in the following optional coverages:

• Collision coverage can cover repairing or replacing your vehicle after a crash, regardless of fault.
• Comprehensive coverage can assist with damage caused by fires, vandalism, theft and severe weather.
• Medical payments (MedPay) coverage may assist with medical or funeral expenses for you and your passengers, regardless of fault.

Frequently Asked Questions

Is North Carolina a No-fault State?

No, North Carolina is an at-fault state where the responsible driver may be liable for damages. Contributory negligence rules also apply when both parties share fault, meaning neither will be able to collect compensation from the other.

What Are the Consequences of Driving Without Insurance in North Carolina?
Driving uninsured can result in fines, license plate suspension, and restoration fees. Operating a vehicle without coverage may also raise your premiums in the future.

We Can Help

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This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.