If you own a vehicle in North Carolina, changes are coming to your auto insurance policy that could affect your wallet and your legal protections. Beginning July 1, 2025, several key updates will go into effect under state law. These changes will increase minimum coverage limits, adjust how underinsured motorist claims are handled, and expand the penalties for certain driving infractions.
At Ley Law Firm, with offices in Greenville, Goldsboro, and Wilson, we believe it’s important that our clients understand how these changes may impact their financial and legal interests. Below is a breakdown of what’s changing—and why it matters.
Higher Minimum Insurance Coverage
North Carolina is increasing the minimum amount of auto liability insurance that drivers must carry. Currently, drivers are required to have $30,000 in bodily injury coverage per person and $60,000 per accident. That amount will increase to $50,000 per person and $100,000 per accident. Property damage coverage is also increasing from $25,000 to $50,000 per accident.
Why this matters: If you’re still carrying the minimum required coverage, your premiums will likely increase when your policy renews. However, the benefit is that you—and others on the road—will have more financial protection in the event of a serious accident. Medical costs and vehicle repairs have risen significantly in recent years, and this update aims to reflect that reality.
Underinsured Motorist Coverage Now Mandatory
Starting with policies issued or renewed after July 1, 2025, all drivers will be required to carry underinsured motorist (UIM) coverage. UIM coverage protects you if you’re injured in an accident caused by someone who doesn’t have enough insurance to fully cover your damages.
Previously, UIM coverage could be reduced or offset by the amount of the at-fault driver’s policy limits. Under the new rules, UIM claims will be based on your total damages, not just the difference between policy limits. This means more meaningful financial recovery in serious accidents. The new law also clarifies that if you’re covered under multiple policies, you may be able to combine coverage amounts—which can significantly increase the total compensation available.
Why this matters: This change offers better protection for drivers but will also lead to slightly higher insurance premiums. It ensures that victims of accidents caused by underinsured drivers aren’t left with crushing medical or repair bills.
Longer Surcharges for Driving Infractions
North Carolina is also expanding how long insurance companies can penalize drivers for certain violations. One major change involves the “inexperienced driver surcharge,” which has traditionally applied to those licensed for less than three years. Starting in July 2025, that surcharge can apply to drivers with up to eight years of experience. However, it gradually decreases over time, so the longer you’ve been licensed, the smaller the impact.
Additionally, if you’re convicted of a driving offense that carries four or more insurance points—such as reckless driving—your insurance surcharge will now last five years instead of three. This also applies to certain speeding convictions, and even “Prayer for Judgment Continued” (PJC) outcomes will remain on your insurance record for up to five years.
Why this matters: These changes mean that your driving record will have a longer-lasting impact on your insurance premiums. Drivers with past violations may see rate increases that stick around longer than they used to.
What Should You Do Now?
Now is the time to review your auto insurance policy. If you currently carry only the minimum coverage, speak with your insurance provider to understand how your premiums may change and whether your existing policy meets the new requirements. If you’ve had any recent driving infractions, you should also plan for possible premium increases that may last longer than expected.
At Ley Law Firm, we understand how confusing insurance law can be—and how financially devastating an accident or insurance dispute can become. Our attorneys are here to help you understand your legal rights, review your insurance policy, and fight for fair treatment when your coverage is in question.
We’re Here to Help
With offices in Greenville, Goldsboro, and Wilson, the attorneys at Ley Law Firm are proud to serve clients throughout eastern North Carolina. Whether you’re trying to navigate new insurance regulations, resolve a claim, or pursue compensation after an accident, our team has the experience and compassion to guide you through the process.
If you’ve been injured due to someone else’s negligence, or if you’re facing difficulties with your insurance coverage, don’t wait. Call Ley Law Firm today and let us help you protect your rights and your recovery.
For more detailed information on these changes, please refer to the North Carolina Department of Insurance’s official notice here: ncdoi.gov.
Corey Goss Author
Corey is a dedicated trial attorney serving clients in the areas of criminal defense, personal injury, and wrongful death. His pragmatic, results-driven approach to law uniquely equips him to fight for the “little guy” against both government prosecution and big insurance. Corey is a graduate of both East Carolina University and Campbell Law School.
