Starting July 1, 2025, North Carolina drivers will see significant changes to their auto insurance coverage. New legislation passed by the North Carolina General Assembly will raise minimum liability limits, change surcharge timelines, and increase the “inexperience” period for new drivers. These updates are expected to impact every auto insurance policy issued or renewed on or after that date — and it’s essential to understand how your premiums and protections may change.
At All About Insurance, we’re here to help you navigate these updates and ensure you stay properly covered. Here’s a breakdown of the most important changes, especially for drivers in Raleigh, Durham, Chapel Hill, Carrboro, Hillsborough, Burlington, Mebane, Cary, Apex, Graham, Greensboro, Eden, and Madison.
1. Increased Minimum Liability Limits
What’s changing:
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Bodily Injury Coverage minimums are increasing from $30,000 per person/$60,000 per accident to $50,000 per person/$100,000 per accident.
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Property Damage Liability minimums are going up from $25,000 to $50,000 per accident.
Why it matters:
This change offers greater financial protection for all parties involved in an accident. If you’re at fault in a serious crash, these higher limits help ensure medical expenses and damages are more adequately covered — potentially saving you from major out-of-pocket costs.
2. Uninsured & Underinsured Motorist Coverage Now Mandatory
What’s changing:
All new and renewing policies will automatically include Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage. Additionally, the NC General Assembly has broadened the definition of UIM coverage.
What this means for you:
If you’re hit by a driver with no insurance — or not enough — this coverage helps pay for your injuries and damages. While updated rates for UIM coverage are still pending, this requirement enhances your personal protection behind the wheel.
3. Changes to Prayer for Judgment Continued (PJC)
What’s changing:
Effective July 1, 2025, using a Prayer for Judgment Continued will only avoid insurance points if you haven’t used a PJC in the past 5 years (up from the current 3-year window).
Why it matters:
This impacts how frequently North Carolina drivers can use a PJC to avoid premium increases after a violation. Plan wisely — using a PJC too often may result in rate hikes.
4. Longer “Inexperience” Period for New Drivers
What’s changing:
For anyone getting a driver’s license on or after July 1, 2025, the period during which they’re considered an “inexperienced driver” increases from 3 to 8 years.
Potential benefit:
While this could mean higher premiums for longer, there’s a silver lining: new drivers who maintain a clean record — free of at-fault accidents and moving violations — may qualify for discounts that help reduce their inexperience surcharge. Final surcharge and discount rates are still being determined.
5. Major Convictions Stay on Record Longer
What’s changing:
Convictions that result in 4 or more insurance points will now impact your premium for 5 years, instead of the previous 3.
Exceptions:
Speeding convictions (other than excessive speeding) are treated differently — more on that below.
6. Waivable Speeding Rule Extended
What’s changing:
Convictions for speeding less than 10 mph over the posted limit will continue to be waived — as long as you’ve had no chargeable convictions (other than a PJC) in the last 5 years (up from 3 years).
Good to know:
Safe drivers still benefit. Just make sure to avoid accumulating multiple minor violations — or relying too heavily on PJCs.
What Should You Do Now?
With changes to liability limits, coverage requirements, and premium surcharges, now is the time to:
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Review your current policy. Understand how these changes may impact your premiums.
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Evaluate your coverage needs. Higher minimums may not be enough — consider additional protection.
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Ask about discounts. Especially if you’re adding a new driver or haven’t had an accident in years.
Whether you live in Raleigh, Durham, Chapel Hill, Carrboro, Hillsborough, Burlington, Mebane, Cary, Apex, Graham, Greensboro, Eden, or Madison, our local experts at All About Insurance are ready to help you make sense of these changes.
Need Help Navigating the New Rules?
Let’s talk. Our agents are standing by to help North Carolina drivers update their policies before July 1. Call us, visit one of our local offices, or get started online today.
