North Carolina drivers pay some of the lowest average auto insurance rates in the country, according to Insurify data. But that could change when the state’s higher auto liability insurance limits take effect starting July 1.
The Tar Heel State’s minimum liability insurance requirements currently land in the mid-range compared to other states. But the new requirements will nearly double previous minimums.
The state’s new, higher limits will add more liability protection for North Carolina drivers come July. Drivers buying new policies or renewing existing ones will have to buy the higher limits. Here are the changes to the state’s minimum liability requirements.
Chase Gardner, data insights manager at Insurify, said the higher limits will likely affect rates in North Carolina.
“Any driver in North Carolina currently with either state-minimum coverage limits or limits below 50/100/50 will see an increase in their premium starting in July,” he said. “The good news is that their new policy will offer more financial protection in the event of an accident. But since their insurance company will assume this additional financial responsibility, the company will have to charge higher rates, too.”
Liability insurance protects drivers financially if they cause injuries or property damage in a car accident — up to their policy’s liability coverage limit. New Hampshire is the only state that doesn’t require drivers to have a minimum amount of liability insurance.
While North Carolina auto insurance premiums have increased in the last two years, average costs started falling halfway through 2024. The average monthly auto insurance premium in North Carolina is $95 for full coverage and $55 for liability-only insurance, according to Insurify data.
Gardner said that despite the cost increases, the higher limits have an upside.
“One silver lining is that drivers with a full-coverage policy and limits above 50/100/50 could eventually see their premiums decrease slightly as more drivers in the state have better coverage and the risk of getting into an accident with an underinsured driver decreases,” he said.
Auto insurance costs increased by 15% nationwide in 2024, and Insurify predicts a lower increase of 5% in 2025, according to its auto insurance report. Rates in North Carolina rose by 14% last year, and Insurify projects a 6% statewide increase to average rates this year.
Drivers concerned about the possible rate increases can try a few strategies to reduce their car insurance costs. The Insurance Information Institute recommends shopping around and comparing multiple quotes, taking advantage of discounts, and maintaining a good credit history to save money on car insurance.
Originally published on insurify.com, part of the BLOX Digital Content Exchange.
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