North Carolina increases car insurance minimums effective July

North Carolina drivers may soon see a shift in their auto insurance rates as new liability insurance limits take effect on July 1. Currently, the state's minimum liability requirements are mid-range compared to other states, but the upcoming changes will nearly double these minimums.

Chase Gardner, data insights manager at Insurify, noted that these higher limits could impact rates for North Carolina drivers. "Any driver in North Carolina currently with either state-minimum coverage limits or limits below 50/100/50 will see an increase in their premium starting in July," he said. He added that while this means more financial protection during accidents, it also results in higher charges from insurance companies due to increased financial responsibility.

Liability insurance offers financial protection if a driver causes injuries or property damage up to the policy's limit. Notably, New Hampshire remains the only state without a mandatory minimum liability insurance requirement.

Although North Carolina's auto insurance premiums have risen over the past two years, average costs began decreasing midway through 2024. Presently, the average monthly premium is $95 for full coverage and $55 for liability-only insurance according to Insurify data.

Gardner pointed out potential benefits of these higher limits: "One silver lining is that drivers with a full-coverage policy and limits above 50/100/50 could eventually see their premiums decrease slightly as more drivers in the state have better coverage and the risk of getting into an accident with an underinsured driver decreases."

Nationally, auto insurance costs rose by 15% in 2024. However, Insurify predicts a lower increase of 5% for 2025. In North Carolina specifically, rates went up by 14% last year with projections suggesting a further statewide increase of 6% this year.

To mitigate potential rate hikes, drivers can employ strategies such as comparing multiple quotes, utilizing discounts where possible, and maintaining good credit history according to recommendations from the Insurance Information Institute.