Starting July 1, 2025, significant updates to automobile insurance requirements from the North Carolina Rate Bureau will take effect in North Carolina:
Revised Minimum Liability Coverage
The state-mandated minimum liability limits for auto insurance will increase as follows:
- Bodily Injury Liability:
From $30,000 per person / $60,000 per accident
To $50,000 per person / $100,000 per accident - Property Damage Liability:
From $25,000 per accident
To $50,000 per accident
This change aims to provide greater financial protection to citizens when accidents occur.
Extended Inexperience Period for New Drivers
For individuals who obtain their first driver’s license on or after July 1, 2025:
- The inexperience period will extend from three years to eight years.
- This adjustment does not apply to drivers licensed before that date.
Insurance companies are still finalizing the surcharge and discount structures. However, drivers with clean records—free of accidents or convictions (including those with a Prayer for Judgment Continued, or PJC)—may be eligible for future discounts.
Updated Chargeability Period for Major Convictions
Beginning July 1, 2025, any major conviction that results in four or more insurance points (excluding speeding over the posted limit) will now remain on a driver’s record for five years, up from the previous three years.
This extended chargeability period is intended to better reflect long-term driving risk and may impact insurance premiums accordingly.
At Tom Needham Insurance Agency, we understand that every driver’s situation is unique. That’s why we shop multiple carriers on your behalf to help you find the best coverage at the most competitive rate—especially during times of change like this.
Learn more about Tom Needham Insurance Agency or contact us for a quote.