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North Carolina raised its minimum liability limits to 50/100/50 for policies issued or renewed on or after July 1, 2025, up from 30/60/25. That is among the highest minimums in the country, and every policy must also carry uninsured/underinsured motorist coverage.
Two features set North Carolina apart. First, it follows pure contributory negligence, so if your own negligence contributed to a crash you may be barred from recovering from the other driver. Second, auto rates are set through a filing by the North Carolina Rate Bureau reviewed by the Department of Insurance, rather than each insurer filing freely. Enforcement runs through the DMV: insurers report cancellations, and a lapse triggers a civil penalty of $50, $100 or $150 based on prior lapses. Starting October 1, 2026, the owner's response window to a termination notice is 30 days instead of 10.
| Minimum liability | 50/100/50 (BI per person / BI per accident / PD, in $1,000s) |
|---|---|
| Other required coverage | Uninsured/underinsured motorist (UM/UIM) coverage required on all policies |
| Fault system | At-fault (tort) |
| Credit-based insurance scores | Restricted |
North Carolina minimum liability limits
To register and drive a car in North Carolina you need at least this much liability coverage:
- $50,000 for injuries to one person in an accident you cause.
- $100,000 in total for injuries to everyone in that accident.
- $50,000 for damage to other people's property, such as their car.
Minimums rose from 30/60/25 to 50/100/50 for policies issued or renewed on or after July 1, 2025.
Tip: The minimum is a legal floor, not a recommendation. If a serious crash costs more than your limits, you could be personally responsible for the rest. See how much liability coverage you may need.
Other required and offered coverage
Besides liability, North Carolina requires:
- Uninsured/underinsured motorist (UM/UIM) coverage required on all policies
Learn more about uninsured motorist coverage and personal injury protection.
Is North Carolina a no-fault state?
North Carolina is an at-fault (tort) state. The driver who causes a crash is responsible for the other people's injuries and property damage, which is normally paid by that driver's liability insurance. Injured people can claim against the at-fault driver's insurer or, in some cases, sue.
North Carolina is one of a few states with pure contributory negligence: if your own negligence contributed to the crash, you generally cannot recover from the other driver.
Read more: at-fault vs. no-fault states explained.
Can insurers use your credit in North Carolina?
Status: Restricted. Under G.S. 58-36-90 insurers cannot rely on credit scoring alone to cancel a policy, and insurers that use credit scores to underwrite and rate must file their scoring models with the Department of Insurance.
See how credit affects car insurance for the bigger picture.
Penalties for driving uninsured in North Carolina
A lapse brings a civil penalty of $50, $100 or $150 depending on prior lapses in the previous three years, plus possible late fees and collections. Failure to respond can lead to plate revocation, and relicensing requires the penalty plus a $50 restoration fee.
Insurers must notify NCDMV when coverage is canceled or lapses. If coverage did not actually lapse, the insurer electronically submits a Certificate of Insurance (FS-1) to clear the record.
If you are ordered to file proof of insurance, see what SR-22 insurance is.
Tips for North Carolina drivers
- Check your renewal for the 50/100/50 limits. They apply to policies issued or renewed on or after July 1, 2025, so older paperwork may show the previous 30/60/25 limits.
- Keep your insurance until you turn in the plate. NCDMV says canceling insurance first can lead to a fine for failing to maintain continuous coverage.
- Respond promptly to a termination notice. The response window is 30 days starting October 1, 2026, but failing to respond can lead to plate revocation and collections.
- If you move out of state, register the vehicle there within 30 days of the policy ending. NCDMV may waive the penalty and restoration fee with proof of out-of-state registration.
- Be careful about admitting fault after a crash. Under contributory negligence even a small share of fault can affect your ability to recover, so talk to a licensed professional.
When you shop, compare quotes from several insurers using the same limits and deductibles, so the prices are like-for-like.
Official resources
- Insurance regulator: North Carolina Department of Insurance
- Motor vehicle agency: North Carolina Division of Motor Vehicles
Your state insurance department can answer questions about your rights and handle complaints about insurers.
Frequently asked questions
What are North Carolina's minimum insurance limits?
For policies issued or renewed on or after July 1, 2025, North Carolina requires $50,000 per person and $100,000 per accident for bodily injury and $50,000 for property damage. Before that date the minimums were 30/60/25. Uninsured/underinsured motorist coverage is also required on all policies, and the policy must come from a company licensed in North Carolina.
What is contributory negligence in North Carolina?
North Carolina follows pure contributory negligence, which means a plaintiff whose own negligence proximately caused the injury generally may not recover. Most states instead reduce payouts by your share of fault. Because the rule can bar a claim entirely, how fault is determined can matter a great deal in a dispute.
What is the penalty for a lapse in coverage in North Carolina?
NCDMV assesses a civil penalty of $50, $100 or $150 depending on how many lapses the owner has had in the previous three years. Late fees, interest and collections may apply, plates can be revoked, and relicensing requires the penalty plus a $50 restoration fee. Online payments carry extra fees.
How does North Carolina know my insurance lapsed?
Insurance companies must notify NCDMV when coverage is canceled or lapses. NCDMV sends a termination notice and, if coverage had not actually lapsed, the insurer can electronically submit a Certificate of Insurance (FS-1) to clear the record. You can confirm clearance through the NCDMV Contact Us form or by phone.
Sources
- NCDMV – Vehicle insurance requirements
- North Carolina General Assembly – G.S. 58-36-90
- North Carolina General Assembly – G.S. 20-311
- North Carolina Department of Insurance – Basic and miscellaneous auto coverages
- Matthiesen, Wickert & Lehrer – Contributory negligence/comparative fault laws in all 50 states
General information only. State rules change. Confirm current requirements with the North Carolina Department of Insurance or your insurer before you buy. This page is not insurance or legal advice.