Will Raising Auto Insurance Minimums Increase Uninsured Drivers in North Carolina?

Starting in 2025, North Carolina drivers will be required to carry higher minimum auto insurance coverage due to the changes brought by Senate Bill 452. This law raises the minimum liability insurance limits from $30,000 per person/$60,000 per accident to $50,000 per person/$100,000 per accident. While this is great news for accident victims, it has sparked concern amongst both insurers and drivers that these higher limits could lead to an increase in uninsured motorists.

In this blog post, we’ll explore the potential effects of raising auto insurance minimums on uninsured drivers, why the law is important, and how it could impact you as a North Carolina driver or accident victim.

The New Minimum Insurance Limits

Starting on July 1, 2025, Senate Bill 452 mandates that all North Carolina drivers will be required to carry higher minimum liability limits on their auto insurance. The new limits are:

$50,000 per person for bodily injury (up from $30,000).
$100,000 per accident for bodily injury (up from $60,000).
$25,000 for property damage (unchanged).

The goal of this change is to ensure that accident victims receive more adequate compensation for their injuries and property damage. With medical costs, vehicle repairs, and legal fees constantly rising, the previous limits were simply not enough to cover serious accidents.

Will Higher Insurance Minimums Lead to More Uninsured Drivers?

One of the biggest concerns raised about the increase in minimum insurance limits is that it might lead to more uninsured drivers. The argument is that with higher premiums, some drivers may not be able to afford coverage and will choose to drive without insurance. While this concern is understandable, research and evidence from other states show that raising minimum insurance limits doesn’t necessarily result in more uninsured drivers.

Here’s why:

Minimal Impact on Premiums: According to the North Carolina Department of Insurance, the increase in premiums due to the new liability limits is expected to be relatively small. Preliminary estimates suggest that premiums may rise by only a few dollars a month for most drivers. This slight increase is unlikely to cause a significant jump in uninsured drivers.
Better Protection for Drivers: The higher minimums provide better financial protection for all drivers, ensuring that accident victims can cover medical expenses and property damage. This increased protection may actually encourage more drivers to maintain coverage, knowing they are better safeguarded against large out-of-pocket expenses in the event of an accident.
States with Higher Minimums Haven’t Seen Increased Uninsured Rates: Other states that have raised their minimum insurance requirements have not seen a substantial increase in the number of uninsured drivers. For example, when California raised its insurance limits, there was no significant spike in uninsured motorists, as reported by the state’s Department of Insurance.

Why the New Limits Are Necessary

The increased minimum insurance limits are a necessary update to reflect the rising costs of medical care, vehicle repairs, and other expenses related to accidents. The old limits of $30,000/$60,000, which were set in 1999, are simply not enough to cover the costs of a serious car accident in today’s world.

Higher Medical Costs: Medical expenses have skyrocketed over the past two decades, and $30,000 in bodily injury coverage often doesn’t come close to covering the cost of emergency room visits, surgeries, and long-term care.
Increased Vehicle Repair Costs: The cost of repairing vehicles, especially with modern safety and technology features, has also increased significantly. The higher property damage limits help ensure that victims aren’t left with hefty repair bills after an accident.
Reducing Out-of-Pocket Expenses: With higher minimum limits, accident victims are less likely to face large out-of-pocket expenses when the at-fault driver’s insurance doesn’t cover all of their damages.

Example Scenario

Let’s say you’re involved in a car accident in 2026 where the at-fault driver has the new minimum liability limits. Your medical bills amount to $45,000, and the at-fault driver’s insurance will now cover all of it. However, under the old limits, only $30,000 would have been covered, leaving you with a $15,000 shortfall.

This gap would have forced you to either dip into your own funds or rely on your underinsured motorist (UIM) coverage to make up the difference. The new limits prevent this kind of situation, offering more complete protection for accident victims.

How to Protect Yourself

As a driver in North Carolina, there are a few steps you can take to ensure you’re fully protected as the new insurance limits take effect:

Review Your Policy: Check whether your auto insurance policy and review how much insurance coverage and what types of coverage you are paying for.
Consider Adding or Increasing UIM Coverage: While the new liability limits are higher, they still may not cover all expenses in a serious accident. Adding or increasing your underinsured motorist (UIM) coverage can give you extra protection if you’re injured by a driver who doesn’t carry enough insurance.
Ask Your Insurance Agent About Premium Increases: Reach out to your insurance provider to get an estimate of how much your premiums might increase due to the new minimum limits. Many drivers will see only a slight increase, but it’s good to plan ahead.

Statutes You Should Know

N.C. Gen. Stat. § 20-279.21: This statute outlines the requirements for liability insurance in North Carolina, including the new minimum limits set by Senate Bill 452.
N.C. Gen. Stat. § 20-279.1: This statute provides definitions and requirements for insurance coverage in North Carolina, including mandatory liability and uninsured/underinsured motorist coverage.

Need Help with a Personal Injury Case?

If you’ve been injured in a car accident, our experienced Durham personal injury attorneys can help you navigate the new insurance requirements and ensure you receive the compensation you deserve. Contact us now for a free consultation.