Comprehensive guide to NC insurance requirements, regulations, and your rights as a consumer
Effective July 1, 2025
These changes apply to all new and renewed auto insurance policies on or after July 1, 2025. Existing policies remain unchanged until their renewal date.
Coverage Type | Old Minimums (Before July 2025) |
New Minimums (July 2025+) |
---|---|---|
Bodily Injury (per person) | $30,000 | $50,000 |
Bodily Injury (per accident) | $60,000 | $100,000 |
Property Damage | $25,000 | $50,000 |
Big Change: Starting July 1, 2025, ALL auto policies must include Uninsured/Underinsured Motorist (UM/UIM) coverage matching the new minimum liability limits.
Major Improvement: You can now collect FULL UIM benefits in addition to liability payouts.
This change applies only to drivers who get their license on or after July 1, 2025.
Inexperienced driver surcharge for:
Inexperienced driver surcharge for:
The lookback period for Prayer for Judgment Continued violations has been extended.
Insurance companies looked back 3 years for PJC history
Insurance companies can now look back 5 years for PJC history
What NC law requires for all drivers
Pays for damage to your vehicle in an accident
Required if you have a car loan
Covers theft, vandalism, weather damage
Often required by lenders
Pays for rental while your car is repaired
Highly recommended
Covers loan balance if car is totaled
Essential for new car loans
Not required by law, but often mandatory for mortgages
North Carolina law does NOT require homeowners insurance. However, if you have a mortgage, your lender will require coverage to protect their investment.
Must equal at least the loan amount or replacement cost of the home
Mortgage company must be listed on the policy
Policy must remain active throughout the loan term
Annual proof of coverage required
Many NC homeowners policies include a "consent to rate" clause that allows insurers to charge up to 250% more than the state's maximum approved rate.
Standard policies do NOT cover flooding
Separate flood insurance required through NFIP or private insurers
Usually excluded from standard policies
Available as separate coverage or endorsement
Not covered by standard policies
Water backup endorsement available
Limited coverage for business property/liability
Separate business policy may be needed
Know your rights when dealing with insurance companies
Free look period to review new policies (typically 30 days)
Cannot be cancelled mid-term except for non-payment or fraud
Can change insurance companies at any time
Access to all policy documents and claim files
NC General Statute § 58-63-15 protects consumers from unfair insurance practices.
Check your policy for "suit against us" provisions - typically 12 months from date of loss or claim closure. State law may provide additional time, so consult an attorney if needed.
How to get help when things go wrong
Phone
855-408-1212
Website
ncdoi.gov
Online complaint form
Consumer Protection Division
For broader consumer fraud issues
BBB serving Eastern NC
For general business disputes
Free legal assistance
For qualifying low-income consumers
For complex legal issues
May work on contingency for valid claims
Helpful links and contact information
Free tools to estimate your coverage needs
In-depth guides on insurance topics
Our experienced agents stay up-to-date on all NC insurance law changes and can help you navigate the requirements to find the right coverage for your needs.
This guide provides general information about North Carolina insurance laws and requirements as of July 2025. Laws and regulations change frequently, and this information should not be considered legal advice. For specific legal questions or current law interpretations, consult with a qualified attorney. For insurance coverage questions specific to your situation, contact a licensed insurance agent. Bill Layne Insurance Agency makes no warranties regarding the accuracy or completeness of this information.