2025 Car Insurance Policy Limits in North Carolina
North Carolina is raising the minimum policy limits for car insurance from $30,000.00 to $50,000.00. In addition, the credit for liability monies for underinsured (UIM) coverage will be eliminated.
Policy Limits Increase
Policy limits for bodily injury are now mandated to be at least $50,000.00 in coverage. Policy limits coverage is the highest amount an insurance company is required to pay regardless of the injuries sustained. This increase will benefit those severely injured in a wreck and hit by someone with only minimum limits.
Underinsured Credit Elimination
In North Carolina, when a person is injured by a vehicle with insufficient coverage to pay for the persons injuries, underinsured coverage will cover the damages above the limits of the liability policy. UIM is first party insurance or insurance that covers the purchaser of it. It used to be the law that UIM would receive a credit for any monies paid by the liability carrier, now that credit has been eliminated. Here are examples of the old and new way insurance coverage will work in North Carolina given the applicable coverages:
Liability Policy Limits $50,000.00
Underinsured Policy Limits: $50,000.00
- Liability pays $50,000.00
- Underinsured pays $0.00
- Total: $50,000.00
Now with the new changes:
- Liability pays $50,000.00
- Underinsured pays $50,000.00
- Total: $100,000.00
Every driver in North Carolina now has available at least $100,000.00 to cover them in case of serious injuries after an accident thanks to the new law. Keep in mind, that attorneys often encourage clients to have more underinsured coverage than mandated to help in case of severe injuries. Underinsured also protects family members and occupants of your vehicle.
In an Accident?
If you or a loved one suffers a serious injury from a car accident, contact our team of attorneys. We are here to make sure you get the compensation you deserve.
