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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Written byNick Dauk
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6+ years writing about insurance, travel, and personal finances
Contributor to brands like Credible
In addition to insurance, Nick specializes in writing about business, entrepreneurship, personal finance, and travel. He’s been featured in myriad web publications, including Fox Business.
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Courtney MikulskiSenior Editor, Auto
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Courtney's deep knowledge of personal finance goes beyond insurance and includes credit cards, consumer loans, and banking. She loves creating practical content.
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Reviewed byDaniel Roccato
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Dan is a well-recognized and widely quoted financial services expert, regularly appearing in a variety of national and local media as a subject matter expert.
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Table of contents
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:[1]
Coverage  | Current Coverage Limits | Coverage Limits as of July 1, 2025 |
|---|---|---|
| Bodily injury liability | $30,000 per person / $60,000 per accident | $50,000 per person / $100,000 per accident |
| Property damage liability | $25,000 per accident | $50,000 per accident |
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 own 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.
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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.
Keep in mind that $25,000 is the absolute minimum requirement. If you do 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]
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Minimum Car Insurance Requirements in Every State
North Carolina Safe Driver Incentive Plan
SDIP
The North Carolina Safe Driver Incentive Plan (SDIP) provides drivers with a financial incentive to practice safe driving. Moving violations, at-fault accidents, and other convictions correlate to points on your license that result in car insurance rate increases. For example, two SDIP points equals a 55% rate increase.[3]
The more points you accrue with the state, the more you risk losing your license. North Carolina may suspend your license if you get 12 points within three years.[4]
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 only covers other parties’ damages and injuries after an accident you cause. It doesn’t pay for your own 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. Though drivers who lease or finance their vehicles will likely be required to maintain full coverage by their lenders.
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.
The cost of liability-only car insurance in North Carolina
The average cost of liability-only insurance in North Carolina is $59 per month. If you have liability insurance and cause a car accident, that means your policy will pay for the other parties’ damages and injuries.
The cheapest liability-only car insurance company in North Carolina is Erie, but the table below includes other affordable auto insurers.
The below rates are estimated rates current as of: Thursday, May 1 at 12:00 PM PDT.
Insurance Company | Average Monthly Quote |
|---|---|
| Erie | $42 |
| Nationwide | $42 |
| Travelers | $53 |
| Allstate | $57 |
| Progressive | $58 |
| Direct Auto | $60 |
| Dairyland | $62 |
| Safeco | $63 |
| National General | $64 |
| Liberty Mutual | $66 |
| State Farm | $69 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
The cost of full-coverage car insurance in North Carolina
The average cost of full-coverage car insurance in North Carolina is $92 per month. Full-coverage insurance usually includes liability coverage, plus collision and comprehensive, 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.
The below rates are estimated rates current as of: Thursday, May 1 at 12:00 PM PDT.
Insurance Company | Average Monthly Quote |
|---|---|
| Erie | $63 |
| Nationwide | $63 |
| Travelers | $80 |
| Allstate | $86 |
| Progressive | $88 |
| Direct Auto | $97 |
| National General | $101 |
| State Farm | $103 |
| Safeco | $115 |
| Liberty Mutual | $160 |
| Dairyland | $169 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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:[1]
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
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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:
Medical payments (MedPay) coverage
Medical payments coverage (MedPay) covers you for medical expenses for you and your passengers in the event of an accident, regardless of fault.
Roadside assistance coverage
Roadside assistance coverage helps pay for costs when your car breaks down during travel. It can include towing and labor, battery jump-starts, and tire changes.
Rental reimbursement coverage
Rental reimbursement coverage pays for the cost of a rental car if your car is in the shop for repairs, up to the policy limit.
Gap coverage
Gap insurance covers the difference between your auto loan and insurance settlement in the event of a total loss.
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.[1]
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]
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Sources
- North Carolina Department of Motor Vehicles. "Insurance Requirements."
- North Carolina General Assembly. "§ 20-279.21. "Motor vehicle liability policy" defined.."
- North Carolina Department of Insurance. "Safe Driver Incentive Plan."
- North Carolina Department of Motor Vehicles. "Driver License Points."
- North Carolina Department of Motor Vehicles. "Title Requirements."
- North Carolina General Assembly. "§ 20-309. Financial responsibility prerequisite to registration; must be maintained throughout registration period.."
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Nick Dauk
Nick Dauk is a freelance writer specializing in business, entrepreneurship, personal finance, and travel. His work has been featured in Fox Business, BBC, The Edge, Business Insider, and Bisnow. Nick is a first-generation college graduate, having majored in Interdisciplinary Studies at the University of Central Florida. His eclectic coursework, combined with previous managerial roles in the retail and broadcast television industries, have helped him develop an interdisciplinary approach to writing.
For nearly a decade, Nick has created content for mom-and-pop businesses and global corporations. As a travel writer, his global adventures have also been featured on Inside Hook, Houston Chronicle, Culture Trip, and Matador. When he's not traveling, Nick can be found in Orlando spending time with his wife and toddler.
Nick has been a contributor at Insurify since October 2022.
Courtney MikulskiSenior Editor, Auto
Over 3 years of experience producing content on insurance and personal finance.
Key architect of Insurify's quality score.
Courtney's deep knowledge of personal finance goes beyond insurance and includes credit cards, consumer loans, and banking. She loves creating practical content.
Featured in
30+ years in financial services
Clinical Professor of Finance, University of San Diego
Dan is a well-recognized and widely quoted financial services expert, regularly appearing in a variety of national and local media as a subject matter expert.