North Carolina Car Insurance

North Carolina drivers must carry at least 50/100/50 liability coverage under N.C.G.S. § 20-279.21, effective for policies issued or renewed on or after July 1, 2025 under Session Law 2023-124¹⁴. UM and UIM are required at limits equal to the policy's liability limits¹. North Carolina is a traditional tort state (no required PIP)⁵. Rate filings run through the North Carolina Rate Bureau, subject to NC Department of Insurance review⁵. A confirmed lapse triggers NCDMV license-plate pickup and civil penalties under N.C.G.S. § 20-311³.

The 50/100/50 minimum (post-July 1, 2025)

N.C.G.S. § 20-279.21 compels every registered North Carolina vehicle to carry 50/100/50 liability for policies issued or renewed on or after July 1, 2025. Session Law 2023-124 (SB 452) raised the prior 30/60/25 floor to this new level¹⁴. The three numbers refer to:

• $50,000 bodily injury per person.
• $100,000 bodily injury per accident.
• $50,000 property damage per accident.

Many North Carolina drivers carry higher limits because 50/100/50 is calibrated to the smallest allowed exposure.

PIP is not required (traditional tort state)

North Carolina does not require PIP. MedPay is an optional first-party add-on insurers typically offer. UM/UIM, discussed below, is the practically important compulsory first-party decision in North Carolina.

UM and UIM required at policy liability limits

N.C.G.S. § 20-279.21 requires UM and UIM at limits equal to the policy's bodily-injury and property-damage liability. UM is compulsory on all policies; UIM is compulsory on policies with liability limits above the statutory floor¹.

UM Property Damage under North Carolina law carries a $100 deductible: the first $100 of UM property-damage recovery is the insured's responsibility¹. This is a North Carolina-specific detail that affects claim handling after an uninsured at-fault collision.

NCDMV lapse enforcement

Insurers report policy terminations to NCDMV electronically. Under N.C.G.S. § 20-311, a confirmed lapse can trigger license-plate pickup and civil penalties. The NC DMV consumer page documents the plate-pickup process³⁶.

NC Rate Bureau and the managed-rate regime

North Carolina operates a managed-rate regime that is unusual among U.S. states. The North Carolina Rate Bureau is a statutorily created private entity that files personal-auto rates on behalf of all admitted insurers. The Department of Insurance reviews filings and can disapprove rates⁵.

Credit-based insurance scoring is permitted in North Carolina. For a general treatment of rating factors across states, see our how insurers calculate rates guide.

Where the North Carolina situation rules live on YesWeSure

This State Guide owns the North Carolina pricing and legal framework. Situation-specific North Carolina mechanics live on the sibling Situation guides:

• After an accident. See our after-an-accident guide.
• After a DUI. North Carolina DL-123 and reinstatement mechanics are treated in our after-a-DUI guide.
• After a lapse. NCDMV plate-pickup consequences of a lapse are treated in our after-a-lapse guide.
• Moving into North Carolina. New-resident FS-1 and registration are treated in our moving-to-another-state guide.

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