RALEIGH, N.C. — Starting July 1, 2025, drivers across North Carolina are facing significant changes to their auto insurance policies under a new law that both raises minimum liability limits and extends surcharge timelines for new drivers. The legislation aims to reflect rising healthcare and repair costs—but it could mean hundreds of dollars in added expenses for some.
What the Law Now Requires
Under the revised law, minimum insurance coverage in North Carolina is now:
- $50,000 for bodily injury per person
- $100,000 for bodily injury per accident
- $50,000 for property damage
These limits represent a 100% increase over the previous $30K/$60K/$25K standard, making this the first major insurance update in decades. As highlighted by Axios Raleigh, the new law also mandates underinsured motorist coverage on all new and renewed policies.
Surcharge Period Extended from 3 to 8 Years
Previously, North Carolina drivers who had less than three years of experience were subject to surcharge penalties if convicted of serious traffic violations. That window has now grown to eight years, as reported by NC Newsline.
This means any violation during the first eight years of holding a license—such as reckless driving or DWI—can now lead to higher insurance premiums. Even minor speeding tickets during this period could have long-term cost implications.
The Sun notes that serious infractions adding four or more insurance points may result in surcharges that last even longer, extending financial pressure well beyond the incident itself.
How Much Will Rates Go Up?
While each provider will calculate premiums differently, early estimates suggest that average insurance costs in North Carolina may rise by 5% or more. For new drivers or those with violations, the hikes could be significantly higher…