In North Carolina, the law requires all drivers to carry a minimum amount of car insurance to ensure financial responsibility in the event of an accident. These minimum requirements are designed to protect both the driver and other people involved in a car accident. The state mandates that drivers have:
Liability Insurance: This covers bodily injury and property damage caused by the insured driver. Effective July 2025, the minimum coverage amounts in NC are:
$50,000 for bodily injury or death of one person in an accident
$100,000 for bodily injury or death of more than one person in an accident
$50,000 for property damage caused by the accident
Medical Payments Coverage (MedPay): While North Carolina does not require MedPay insurance, it’s still worth considering to cover medical expenses for you and your passengers in case of an accident.
Contributory Negligence: It’s important to note that North Carolina is a contributory negligence state, which means that if you’re involved in an accident and found to be even 1% at fault for the accident, you are prohibited from recovering compensation.
Should I Purchase Uninsured and Underinsured Motorist Coverage?
One of the most important decisions you can make regarding your car insurance policy is whether to purchase uninsured (UM) and underinsured motorist coverage (UIM). In North Carolina, all drivers are required to purchase uninsured motorist coverage (UM), which protects you, and your passengers, if you’re involved in an accident with someone who doesn’t have any car insurance. According to the North Carolina Department of Insurance, about one in ten drivers in the state may be uninsured. If you’re hit by one of these drivers and they don’t have insurance to cover your medical bills, repairs, or other damages, your uninsured motorist coverage will step in and help pay for those costs.
Underinsured motorist coverage (UIM) protects you if you’re involved in an accident with someone with insurance, but their coverage is insufficient to cover all your expenses. For instance, if the at-fault driver has the minimum liability coverage for bodily injury, but your medical expenses exceed that, your underinsured motorist coverage will help cover the difference.
While UIM coverage is not mandatory in North Carolina, it is highly recommended. Adding this coverage to your policy provides additional peace of mind and financial protection that can save you from bearing the brunt of someone else’s negligence.
NC Car Accident Attorneys Protecting Motorists Across The Carolinas
North Carolina car insurance requirements may seem straightforward, but many nuances and additional coverage options can significantly impact your financial security. Understanding the difference between full and limited tort and the importance of uninsured and underinsured motorist coverage will help ensure that you have the right coverage in place to protect you and your loved ones.
If you or a loved one has been injured in a car accident due to another party’s negligence, don’t navigate the claims process alone. The car accident attorneys at Grimes Teich Anderson are here to stand up to insurance companies to help fight for the maximum compensation you could be entitled to by law.
Contact us today by submitting a form online or calling our office at 800-533-6845 for a free consultation.