North Carolina’s New 50/100/50 Minimum, Explained

For the first time since 1999, North Carolina raised the minimum liability every driver must carry. Here’s what changed, when, and what it means for your premium.

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Updated October 28, 2026 · CoverageLink editorial team

What changed on July 1, 2025

Under Senate Bill 452, North Carolina’s minimum liability limits rose from 30/60/25 to 50/100/50 for policies issued or renewed on or after July 1, 2025. That means $50,000 of bodily-injury coverage per person, $100,000 per accident, and $50,000 for property damage. Uninsured/underinsured motorist coverage is required at matching limits. The $50,000 property-damage floor is now the highest in the country.

Why your premium may have gone up twice

Two things stacked up in 2025. First, the higher mandated limits raised premiums for drivers who had been carrying the old 30/60/25 minimum. Second, the North Carolina Rate Bureau requested a 22.6% average auto increase, and Commissioner Mike Causey settled it at +5.0% on average, effective October 1, 2025 (+9.0% on liability). Causey pointed to distracted driving, excessive speeding and higher repair costs.

What it means for you

If you carried state-minimum coverage, your renewal almost certainly rose. The silver lining: more coverage protects you from being personally sued over a serious crash, which the old $25,000 property-damage limit barely covered against today’s vehicle prices. The move that pays off is to re-shop — after a rate change, the spread between carriers widens, so the same driver can be quoted very differently.

FAQ

Do I have to buy more coverage now?

Yes — 50/100/50 is the legal minimum for policies issued or renewed on or after July 1, 2025, and UM/UIM must match those limits.

How much did North Carolina auto rates go up in 2025?

The settled increase was +5.0% on average effective October 1, 2025, with liability up 9.0%. Drivers on old minimums saw an additional bump from the higher limits.

Should I re-shop my policy?

It often pays to. After a rate change, carriers price the same driver very differently, so comparing three or more quotes is the simplest way to offset the increase.

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