If you drive in North Carolina, the minimum auto liability limits for policies issued or renewed on or after July 1, 2025 are 50/100/50. In practice, that means 50,000 dollars of bodily injury liability coverage per person, 100,000 dollars of bodily injury liability coverage per accident total, and 50,000 dollars of property damage liability coverage per accident.
Older policies may still show the previous 30/60/25 minimums until they renew. Many drivers only see these numbers on a declarations page once or twice a year, so it is not always clear what they actually do in a crash or when the new limits apply. Understanding how 50/100/50 works, when it takes effect, how to read your declarations page, why UM and UIM matter, and what happens if coverage lapses can help you make better decisions about your insurance.
What Are the Minimum Auto Insurance Limits in North Carolina?
For auto policies issued or renewed on or after July 1, 2025, North Carolina’s minimum auto liability limits are 50/100/50. To legally register and drive a vehicle in North Carolina, you must carry at least:
- $50,000 of bodily injury liability coverage per person
- $100,000 of bodily injury liability coverage per accident total
- $50,000 of property damage liability coverage per accident
These are the minimum legal limits. Some drivers will still see 30/60/25 on their declarations pages until their policies renew after July 1, 2025. The North Carolina Division of Motor Vehicles (NCDMV) insurance requirements and the North Carolina Department of Insurance (NCDOI) guidance are the official sources, but they can be dense. It helps to see how these numbers change at renewal and how they operate in real-world crashes.
What Were the Previous Minimum Liability Limits in North Carolina?
Before the July 1, 2025 change, North Carolina’s minimum limits were 30/60/25. That meant:
- $30,000 of bodily injury liability coverage per person
- $60,000 of bodily injury liability coverage per accident total
- $25,000 of property damage liability coverage per accident
Those lower limits apply to policies that started before July 1, 2025 and have not yet renewed. Once a policy renews on or after that date, the insurer must increase the limits to at least 50/100/50.
Knowing what the numbers are is important. It is just as important to understand how they work in real crashes.
What 50/100/50 Means in North Carolina and What It Can Pay For
The 50/100/50 structure is an example of split limits. Each number is a separate cap on a different part of your liability coverage. Drivers across North Carolina are subject to these same minimums.
Here is a breakdown of what each part of 50/100/50 can pay for and where confusion often arises:
| Coverage Type | Minimum Amount | What It Can Pay For | Common Misunderstanding |
| Bodily Injury Liability Per Person | $50,000 | Medical bills, lost wages, and certain non-economic damages for any one injured person | Some assume this is enough to cover anyone’s injuries regardless of severity |
| Bodily Injury Liability Per Accident | $100,000 | Combined bodily injury payments to everyone injured in the same crash | Many think this limit applies per person, not shared across all injured people |
| Property Damage Liability Per Accident | $50,000 | Repair or replacement of other vehicles and damaged property such as buildings, fences, or signs | Many believe this also pays to repair their own car, which it does not |
For example, suppose you are at fault in a collision with one other driver who suffers 30,000 dollars in medical bills and 10,000 dollars in lost wages, and their vehicle has 15,000 dollars in damage. Your bodily injury per person limit of 50,000 dollars could cover their bodily injury damages up to 50,000 dollars, and your property damage limit of 50,000 dollars could cover their vehicle repairs. In that simple case, the minimum limits are sufficient.
A few points to keep in mind:
- Each injured person’s bodily injury claim is capped at the per person limit
- All injured people in the same accident share the per accident bodily injury limit
- Property damage coverage has its own cap and is for other people’s property, not your own vehicle
In complex crashes, such as multi-vehicle pileups on I-40, I-85, or I-95, these minimum limits can be used up quickly. Understanding the difference between bodily injury and property damage liability helps clarify what is protected and what is not.
What Is Bodily Injury Liability vs Property Damage Liability?
Liability coverage is broken into two basic parts.
Bodily injury liability pays for injuries you cause to other people when you are legally at fault. This includes their medical bills, some lost wages, and potentially damages for pain and suffering and permanent impairment.
Property damage liability pays for damage you cause to others’ property when you are at fault. This typically includes repairs or replacement of other vehicles and can also cover damage to buildings, fences, signs, and similar property.
Does Liability Coverage Pay My Own Medical Bills in North Carolina?
Liability coverage is designed to protect you against claims from others when you are legally at fault. It usually does not pay for your own injuries if you caused the crash.
Your medical bills are typically addressed through different coverages depending on who was at fault and what policies apply. In North Carolina, your own injuries may be paid by one or more of the following:
- The at-fault driver’s liability coverage, if someone else caused the crash
- Your uninsured or underinsured motorist coverage, if the other driver has no insurance or too little insurance
- Your medical payments coverage, if you purchased it
- Your health insurance
Knowing what liability does and does not cover is an important part of deciding whether minimum limits are enough for your situation.
Should I Carry More Than the Minimum Auto Insurance Limits in North Carolina?
Minimum limits are the legal minimum that the state requires. They are not tailored to your personal risk. Many serious North Carolina crashes involve medical bills and losses that can easily exceed 50/100/50, especially when surgeries at major hospitals, rehabilitation, and time away from work are involved.
Situations where higher limits are worth considering include:
- Regularly driving on interstate corridors such as I-40, I-85, or I-77 where multi-vehicle crashes are more likely
- Often carrying family members or other passengers in your vehicle
- Earning a high income where a serious injury could create large lost-earning claims against you
- Driving in dense urban areas where property damage to multiple vehicles or structures could be significant
This is general information, not personalized financial advice. The best way to decide on appropriate limits is to talk with your insurer or agent about your driving habits, assets, and risk tolerance.
When the New Minimum Limits Apply and How to Check an Older Policy
North Carolina’s change from 30/60/25 to 50/100/50 does not automatically change every policy on July 1, 2025. The rule is that any auto policy with an effective date on or after July 1, 2025 must carry at least 50/100/50. Policies that began before that date can still show 30/60/25 until they renew.
Renewal dates differ from driver to driver. Some people will see higher limits as of July or August 2025, others later in the year depending on their policy cycle. To know which limits you currently have, it is important to look at your own declarations page.
Do the New Minimum Limits Apply to All North Carolina Drivers Right Away?
The new limits do not apply to all drivers immediately. They apply when an auto policy is issued or renewed on or after July 1, 2025. If your current policy term began before that date, your policy can still show the old 30/60/25 minimums until the renewal date.
You can choose to increase your limits before renewal if you wish, but the law does not automatically change mid-term policies. At your next renewal after July 1, 2025, your insurer must adjust your limits to at least the new 50/100/50 minimums.
How Do I Check My Policy Limits Quickly on a Declarations Page?
You can usually confirm your limits in a few minutes by looking at your declarations page. Helpful steps include:
- Find the page labeled “Declarations” or “Coverage Summary” in your policy documents or online account
- Look for a section titled “Liability” or “Bodily Injury / Property Damage” where split numbers such as 50/100/50 or 30/60/25 are listed
- See whether those numbers match the new 50/100/50 minimums, the older 30/60/25 limits, or higher amounts you chose
- Review the policy effective date and renewal date to see if your current term began before or after July 1, 2025
- Note your uninsured and underinsured motorist limits in the same document so you know what protection you have if another driver has no insurance or too little insurance
If you are unsure how to interpret the declarations page, your agent or insurer can usually walk you through it.
Whether North Carolina Requires Uninsured and Underinsured Motorist Coverage
North Carolina law requires uninsured motorist coverage, and for policies issued or renewed on or after July 1, 2025, underinsured motorist coverage is also included, typically at least at the same minimum limits as liability. These rules come from the same Financial Responsibility law that governs liability minimums and are reflected in NCDMV and NCDOI insurance guidance.
These coverages are designed to protect you and your passengers when other drivers on North Carolina roads either have no liability insurance at all or have only minimal amounts that cannot cover serious injuries.
Is Uninsured Motorist Coverage Required in North Carolina?
Yes. Uninsured motorist coverage is required in North Carolina at least at the state minimums for bodily injury and, in many policies, for property damage as well. UM coverage appears alongside liability on your declarations page and typically shares the same split limits.
This coverage is intended to protect you if you are hit by a driver who has no liability insurance or by a qualifying hit-and-run driver. It fills part of the gap that would otherwise exist when the at-fault driver has no policy.
Is Underinsured Motorist Coverage Now Included on Minimum Limits Policies in North Carolina?
Underinsured motorist coverage is included on all new or renewed North Carolina auto policies starting July 1, 2025, even for drivers who only buy the minimum required liability limits. If you have a policy issued or renewed after that date, your declarations page should show UIM limits as well as UM and liability.
Older 30/60/25 policies may not have included UIM coverage. If your policy has not renewed yet, it is important to check your declarations page to confirm whether UIM is currently in place. If it is missing and your policy predates the renewal requirement, you may be able to add UIM before your next renewal if you wish.
What Is the Practical Difference Between Uninsured and Underinsured Motorist Coverage After a Crash?
In everyday terms, uninsured motorist coverage applies when the at-fault driver has no liability insurance or in certain hit-and-run situations. Underinsured motorist coverage applies when the at-fault driver has some liability insurance, but not enough to cover your losses when compared to your UIM limits and your documented damages.
A side-by-side view can help:
| Coverage Type | UM | UIM |
| When it applies | Other driver has no liability insurance or is an eligible hit-and-run driver | Other driver has liability insurance, but limits are too low compared to your losses and your UIM limits |
| Typical scenario | Hit-and-run crash in Raleigh where the at-fault driver leaves and is never identified, or a driver with no policy at all | A minimum-limit driver causes serious injuries in a Charlotte or Durham crash, and your higher UIM limits are needed |
| Who it helps | Protects you and your passengers when there is no liability policy to collect from | Protects you and your passengers when the known liability policy cannot cover your full damages |
| Common confusion | Many assume UM covers underinsured drivers too | Many believe UIM pays automatically regardless of fault; fault and procedure still matter |
Even with these protections, you must keep your liability coverage active. Letting your policy lapse creates its own problems.
What Happens if You Let Your Auto Insurance Lapse in North Carolina
North Carolina requires continuous liability insurance for any registered vehicle under statutes such as G.S. 20-309. That means you must keep at least the minimum coverage in force at all times for vehicles titled and registered in your name. Lapses, cancellations, and failures to renew can lead to notices from NCDMV and penalties.
If your coverage lapses, your insurer may report the lapse to NCDMV. NCDMV may then send you a notice requesting proof of continuous coverage and may assess civil penalties or take action against your registration and license plate if you cannot show acceptable proof.
What Are the Penalties for a Lapse in Liability Insurance in North Carolina?
When your liability coverage lapses, NCDMV may take several steps, which can include:
- Sending you a notice asking for proof of current coverage and the dates it began
- Assessing civil penalties if you had a lapse in liability insurance
- Suspending your vehicle registration if you fail to provide acceptable proof
- Requiring that you return your license plate or risk additional penalties
- Requiring proof of new coverage and payment of penalties before reinstating your registration
Some drivers assume that keeping an out-of-state policy will solve the problem. That is not how North Carolina’s insurance requirements work.
Are Out-of-State Policies Accepted for a North Carolina Vehicle Registration?
Out-of-state policies generally are not accepted to satisfy North Carolina’s liability insurance requirement for registered vehicles. NCDMV expects coverage from an insurer licensed in North Carolina that meets the state’s Financial Responsibility requirements for that vehicle.
If you move to North Carolina or register a vehicle here, you must obtain an NC-compliant policy and provide proof when requested. An out-of-state policy might cover you in some circumstances from a claims standpoint, but it will not satisfy NCDMV’s continuous liability requirements for a North Carolina registration.
How Can I Fix a Lapse in Coverage and Get My North Carolina Registration Back?
If your insurance has lapsed and your registration has been or is about to be suspended, most drivers can take a few key steps to correct the problem:
- Contact an insurer licensed in North Carolina and obtain a new policy that meets at least the 50/100/50 minimums or higher if desired
- Ask your insurer for proof of coverage, such as an FS-1 form or coverage letter, showing the policy effective date
- Respond to any NCDMV notice by submitting proof of your new policy, following the instructions on the notice
- Pay any required civil penalties or fees associated with the lapse and registration suspension
- Confirm with NCDMV that your registration and plate are reinstated and that your record reflects current coverage
Addressing lapses quickly can limit additional penalties and keep you on the road legally. Minimum auto insurance limits, UM and UIM coverage, and continuous liability are all part of how North Carolina’s system handles what happens after a crash.
Get Help Understanding North Carolina Auto Insurance Limits
If you are unsure whether your current 30/60/25 or 50/100/50 limits are enough for your situation, you do not have to sort through the fine print on your own. Questions about when the new minimums apply, how UM and UIM work, or what to do after a lapse can have real consequences if a serious crash happens on a North Carolina road. Early advice can help you read your declarations page correctly, understand your options before a claim arises, and avoid coverage gaps that leave you exposed.
If you have questions about what your policy limits mean after a crash or how North Carolina’s insurance rules apply to your situation, you do not have to make those decisions alone. Call Lanier Law Group at 919-342-1368 or contact us online for a free consultation. Our team is ready to review your coverage, explain your options under North Carolina law, and fight like heavyweights to protect your right to pursue compensation when an accident occurs.