North Carolina Auto Insurance: Navigating 2025 Law Changes

Prepare for the 2025 Auto Insurance Law Changes

The North Carolina auto insurance landscape is about to undergo its most significant overhaul since 1999, effective July 1, 2025. For both personal and commercial policyholders, these changes warrant attention and preparation. With proper information, your ability to adapt and make informed decisions remains at the forefront.

Higher Bodily Injury Liability Limits

One of the major changes is the increase in required minimum coverage limits—$50,000 for injury or death of one person, $100,000 for two or more, and $50,000 for property damage. If your policy only carries the minimum, now is the time to review your coverage and consider adjustments to align with the new requirements.

Impact on Insurance Costs

As these reforms go into effect, changes in premiums are expected. To illustrate, a case described by WRAL shows the rate for an adult woman with a Volkswagen Tiguan rising from $485 to $531 annually. However, the overall impact will vary among individuals. It's wise to explore personalized rate projections to understand how your premiums might be affected.

Uninsured/Underinsured Motorist Updates

New provisions allow drivers to potentially collect from both their own and the at-fault driver’s UM/UIM policies in certain circumstances, providing enhanced financial protection. This could be critical in scenarios such as accidents with minimal or no insurance coverage by the responsible party.

Rate Surcharge Period Changes

Another noteworthy reform is the extension of the surcharge period for most violations—from three to five years. However, for speeding violations, this remains at three years. This change serves as a strong reminder to reassess and amend risky driving behaviors to avoid extended financial repercussions.

Changes for New Drivers

The definition of an "inexperienced driver" extends from three to eight years, potentially prolonging periods of higher premiums for new drivers. It's important for newer drivers and their guardians to be aware of this extended timeline of higher insurance costs.

Prayer for Judgment Continued (PJC) Reforms

The alterations to PJC rules introduce a longer five-year lookback period, where a second use within this timeframe now leads to a surcharge. A PJC can sometimes mitigate penalties for minor infractions, but this change underscores the need for prudent usage.

Speeding Violation Rule Tweaks

Minor speeding tickets may still be waived, yet the clean record requirement steps up from three to five years. Familiarize yourself with these adjustments to better navigate your options, whether disputing or accepting a violation. Change often breeds challenges, but it's crucial to remember that those already holding above-minimum coverage may not face major premium increases. Review your current insurance policies, especially if your coverage is at the state minimum or if it includes new drivers in the household. For clarity and assurance, reach out for a personalized review to ensure you are amply prepared for the legislative shifts ahead.