North Carolina drivers pay a few of the lowest common auto insurance coverage charges within the nation, according to Insurify data. However that would change when the state’s increased auto legal responsibility insurance coverage limits take impact beginning July 1.
The Tar Heel State’s minimal legal responsibility insurance coverage necessities presently land within the mid-range in comparison with different states. However the brand new necessities will practically double earlier minimums.
North Carolina’s new auto insurance coverage minimums
The state’s new, increased limits will add extra legal responsibility safety for North Carolina drivers come July. Drivers shopping for new insurance policies or renewing present ones must purchase the upper limits. Listed below are the modifications to the state’s minimal legal responsibility necessities.
Chase Gardner, knowledge insights supervisor at Insurify, mentioned the upper limits will probably have an effect on charges in North Carolina.
“Any driver in North Carolina presently with both state-minimum protection limits or limits beneath 50/100/50 will see a rise of their premium beginning in July,” he mentioned. “The excellent news is that their new coverage will supply extra monetary safety within the occasion of an accident. However since their insurance coverage firm will assume this extra monetary accountability, the corporate must cost increased charges, too.”
Legal responsibility insurance coverage protects drivers financially in the event that they trigger accidents or property injury in a automotive accident — as much as their coverage’s legal responsibility protection restrict. New Hampshire is the one state that doesn’t require drivers to have a minimal quantity of legal responsibility insurance coverage.
Whereas North Carolina auto insurance coverage premiums have elevated within the final two years, common prices began falling midway by 2024. The common month-to-month auto insurance coverage premium in North Carolina is $95 for full protection and $55 for liability-only insurance coverage, according to Insurify data.
Gardner mentioned that regardless of the price will increase, the upper limits have an upside.
“One silver lining is that drivers with a full-coverage coverage and limits above 50/100/50 might finally see their premiums lower barely as extra drivers within the state have higher protection and the chance of stepping into an accident with an underinsured driver decreases,” he mentioned.
What’s subsequent? Bracing for increased charges
Auto insurance coverage prices elevated by 15% nationwide in 2024, and Insurify predicts a decrease improve of 5% in 2025, according to its auto insurance report. Charges in North Carolina rose by 14% final yr, and Insurify initiatives a 6% statewide improve to common charges this yr.
Drivers involved concerning the potential price will increase can attempt just a few methods to cut back their automotive insurance coverage prices. The Insurance coverage Info Institute recommends buying round and evaluating a number of quotes, making the most of reductions, and sustaining a very good credit score historical past to save cash on automotive insurance coverage.
