North Carolina car insurance laws and requirements: What is changing in 2025

Q: Will my bare minimum car insurance cover me in another state?

Yes , your car insurance covers claims in another state, even if the minimums are higher in the other state.

North Carolina car insurance laws

North Carolina requires that drivers carry at least 50/100/50.

These limits are in place to ease the financial burden for drivers who cause an accident and for the victims. The at-fault driver knows their insurer will cover medical expenses and property damage up to a certain amount, and victims can more readily access funds to pay for accident costs.

However, coverage limits are very low and will not cover expenses from a serious accident. To be better protected, North Carolina drivers should consider increasing liability limits and adding coverage, such as collision and comprehensive.

North Carolina car insurance requirements

North Carolina requires the following coverage:

Liability. There are two parts to liability coverage. First, bodily injury liability pays medical costs associated with an accident, such as doctor visits, surgery, and prescriptions. Second, property damage liability covers repairing or replacing items such as vehicles, fences, or buildings.

North Carolina liability minimums are 50/100/50.

Erie Insurance has the lowest minimum car insurance rates, averaging $309.

The table below shows the top insurers' average rates for minimum coverage in North Carolina.

Company	Average annual premium	Average monthly premium
Erie Insurance	$309	$26
State Farm	$331	$28
North Carolina Farm Bureau	$338	$28
Nationwide	$425	$35
Geico	$492	$41
Penn National Insurance	$493	$41
Farmers	$530	$44
Progressive	$530	$44
Allstate	$667	$56
Utica National Insurance Group	$695	$58

Read our methodology

North Carolina car insurance cost for minimum coverage limits

On average, state minimum car insurance costs $476. Car insurance rates for minimum coverage vary by company and driver. The table below shows average annual rates for the old minimum liability limits in North Carolina. We will soon revise the rates to align with the updated limits.

The cheapest company for minimum coverage in North Carolina is Erie Insurance at an average rate of $309 annually.

State minimum coverage limit	30/60/25
Average annual premium	$476
Average monthly premium	$40

Read our methodology

Are the North Carolina minimum coverage requirements changing in 2025?

North Carolina car insurance requirements are changing in 2025 for the first time in over 20 years. The previous liability limits were:

$30,000 for bodily injury or death per person
$60,000 for bodily injury or death per accident
$25,000 for property damage per accident

Liability limits will increase on July 1, 2025, to:

$50,000 for bodily injury or death per person
$100,000 for bodily injury or death per accident
$25,000 for property damage per accident

Drivers can expect rates to increase accordingly. However, drivers with more than the minimum required coverage should see no changes.

What does minimum car insurance cover in North Carolina?

North Carolina requires drivers to carry at least a minimum amount of car insurance to help offset accident costs.

North Carolina drivers are required to carry liability coverage. Bodily injury liability helps pay for injuries you cause to others in an accident. Property damage liability covers items damaged in an accident, such as another vehicle, fence, or other property.

PEOPLE ASK:

Is North Carolina minimum car insurance enough?

It may not be. Even a moderately serious accident could exceed the state minimum limits of 50/100/50, and minimum coverage may not cover all accident costs. Furthermore, state minimums do not cover your vehicle; you need to add comprehensive and collision coverage.

How much car insurance is enough in North Carolina?

Car insurance isn't one size fits all. The amount of coverage you need depends on your assets, net worth and risk level.

For example, if you are financially stable and can afford to pay out of pocket for medical costs and repairs, you may keep insurance limits low. However, you may be sued for the cost difference if you have a sizeable net worth and don't carry enough insurance to cover expenses.

Additionally, if you drive very little or have a short commute, your chances of causing an accident are relatively low. Also, you may choose to skip coverages such as collision and comprehensive if your car isn't worth much, or you can afford to pay for a new vehicle if yours is damaged. However, if you have a loan or lease you will be required to carry this coverage by your lender.

Consider your financial situation when determining how much car insurance you need.

North Carolina penalties for driving without car insurance

Since North Carolina requires its drivers to carry car insurance, failing to do so has consequences. Although you may be tempted to skip coverage to save money, you'll wind up paying heavily in the long run.

Failing to carry North Carolina car insurance has penalties including those listed below. Keep in mind that repeated infractions have more severe penalties, such as jail time.

Fines	$50-$150
Other penalties	Registration suspension
Jail time	No

Read our methodology

North Carolina minimum coverage cost by age group

Younger drivers pay for more car insurance because they lack experience behind the wheel. Fortunately, rates decrease as drivers age.

The table below breaks down the cost of car insurance for various age groups. Erie Insurance has the best rates for teens with minimum coverage averaging $724. Erie Insurance offers the cheapest coverage for adults at $302.

Male

Male
Female

Age	Company	Male annual premium	Male monthly premium
16	Erie Insurance	$998	$83
16	North Carolina Farm Bureau	$1,225	$102
16	State Farm	$1,232	$103
16	Nationwide	$1,383	$115
16	Penn National Insurance	$1,666	$139
16	Farmers	$1,792	$149
16	Progressive	$1,792	$149
16	Allstate	$2,104	$175
16	Geico	$2,599	$217
16	Utica National Insurance Group	$3,341	$278
17	Erie Insurance	$797	$66
17	North Carolina Farm Bureau	$896	$75
17	State Farm	$900	$75
17	Nationwide	$1,201	$100
17	Penn National Insurance	$1,215	$101
17	Farmers	$1,307	$109
17	Progressive	$1,307	$109
17	Allstate	$1,746	$146
17	Utica National Insurance Group	$1,997	$166
17	Geico	$2,213	$184
18	Erie Insurance	$693	$58
18	State Farm	$754	$63
18	North Carolina Farm Bureau	$780	$65
18	Geico	$955	$80
18	Penn National Insurance	$1,057	$88
18	Nationwide	$1,108	$92
18	Farmers	$1,137	$95
18	Progressive	$1,137	$95
18	Allstate	$1,700	$142
18	Utica National Insurance Group	$1,736	$145
19	North Carolina Farm Bureau	$367	$31
19	Erie Insurance	$409	$34
19	Penn National Insurance	$493	$41
19	State Farm	$511	$43
19	Farmers	$530	$44
19	Progressive	$530	$44
19	Geico	$615	$51
19	Utica National Insurance Group	$719	$60
19	Nationwide	$874	$73
19	Allstate	$1,043	$87
20	North Carolina Farm Bureau	$367	$31
20	Erie Insurance	$392	$33
20	Penn National Insurance	$493	$41
20	State Farm	$506	$42
20	Farmers	$530	$44
20	Progressive	$530	$44
20	Geico	$615	$51
20	Utica National Insurance Group	$719	$60
20	Nationwide	$790	$66
20	Allstate	$1,034	$86
21	Erie Insurance	$364	$30
21	North Carolina Farm Bureau	$367	$31
21	Geico	$486	$41
21	Penn National Insurance	$493	$41
21	State Farm	$500	$42
21	Farmers	$530	$44
21	Progressive	$530	$44
21	Nationwide	$679	$57
21	Utica National Insurance Group	$695	$58
21	Allstate	$868	$72
22	Erie Insurance	$350	$29
22	North Carolina Farm Bureau	$367	$31
22	Geico	$486	$41
22	Penn National Insurance	$493	$41
22	State Farm	$497	$41
22	Farmers	$530	$44
22	Progressive	$530	$44
22	Nationwide	$615	$51
22	Utica National Insurance Group	$695	$58
22	Allstate	$853	$71
23	Erie Insurance	$344	$29
23	North Carolina Farm Bureau	$367	$31
23	Geico	$475	$40
23	State Farm	$490	$41
23	Penn National Insurance	$493	$41
23	Farmers	$530	$44
23	Progressive	$530	$44
23	Nationwide	$578	$48
23	Utica National Insurance Group	$695	$58
23	Allstate	$839	$70
24	Erie Insurance	$316	$26
24	North Carolina Farm Bureau	$358	$30
24	Geico	$472	$39
24	State Farm	$482	$40
24	Penn National Insurance	$493	$41
24	Farmers	$530	$44
24	Progressive	$530	$44
24	Nationwide	$549	$46
24	Utica National Insurance Group	$695	$58
24	Allstate	$822	$69
25	Erie Insurance	$316	$26
25	North Carolina Farm Bureau	$358	$30
25	State Farm	$457	$38
25	Geico	$466	$39
25	Penn National Insurance	$493	$41
25	Nationwide	$522	$44
25	Farmers	$530	$44
25	Progressive	$530	$44
25	Utica National Insurance Group	$695	$58
25	Allstate	$763	$64
30	Erie Insurance	$316	$26
30	North Carolina Farm Bureau	$341	$28
30	State Farm	$363	$30
30	Nationwide	$459	$38
30	Geico	$472	$39
30	Penn National Insurance	$493	$41
30	Farmers	$530	$44
30	Progressive	$530	$44
30	Allstate	$671	$56
30	Utica National Insurance Group	$695	$58
35	Erie Insurance	$309	$26
35	North Carolina Farm Bureau	$338	$28
35	State Farm	$350	$29
35	Nationwide	$434	$36
35	Geico	$492	$41
35	Penn National Insurance	$493	$41
35	Farmers	$530	$44
35	Progressive	$530	$44
35	Allstate	$660	$55
35	Utica National Insurance Group	$695	$58
40	Erie Insurance	$309	$26
40	State Farm	$331	$28
40	North Carolina Farm Bureau	$338	$28
40	Nationwide	$425	$35
40	Geico	$492	$41
40	Penn National Insurance	$493	$41
40	Farmers	$530	$44
40	Progressive	$530	$44
40	Allstate	$666	$56
40	Utica National Insurance Group	$695	$58
45	Erie Insurance	$298	$25
45	North Carolina Farm Bureau	$313	$26
45	State Farm	$323	$27
45	Nationwide	$420	$35
45	Geico	$492	$41
45	Penn National Insurance	$493	$41
45	Farmers	$530	$44
45	Progressive	$530	$44
45	Allstate	$670	$56
45	Utica National Insurance Group	$695	$58
50	Erie Insurance	$296	$25
50	North Carolina Farm Bureau	$313	$26
50	State Farm	$313	$26
50	Nationwide	$410	$34
50	Penn National Insurance	$493	$41
50	Geico	$516	$43
50	Farmers	$530	$44
50	Progressive	$530	$44
50	Allstate	$638	$53
50	Utica National Insurance Group	$695	$58
55	Erie Insurance	$286	$24
55	State Farm	$307	$26
55	North Carolina Farm Bureau	$313	$26
55	Nationwide	$405	$34
55	Penn National Insurance	$493	$41
55	Geico	$516	$43
55	Farmers	$530	$44
55	Progressive	$530	$44
55	Allstate	$581	$48
55	Utica National Insurance Group	$695	$58
60	Erie Insurance	$286	$24
60	North Carolina Farm Bureau	$313	$26
60	State Farm	$313	$26
60	Nationwide	$405	$34
60	Penn National Insurance	$493	$41
60	Farmers	$530	$44
60	Progressive	$530	$44
60	Geico	$532	$44
60	Allstate	$581	$48
60	Utica National Insurance Group	$695	$58
65	Erie Insurance	$304	$25
65	State Farm	$326	$27
65	North Carolina Farm Bureau	$327	$27
65	Nationwide	$412	$34
65	Penn National Insurance	$493	$41
65	Farmers	$530	$44
65	Progressive	$530	$44
65	Geico	$540	$45
65	Allstate	$603	$50
65	Utica National Insurance Group	$695	$58
70	Erie Insurance	$338	$28
70	North Carolina Farm Bureau	$344	$29
70	State Farm	$347	$29
70	Nationwide	$429	$36
70	Penn National Insurance	$493	$41
70	Farmers	$530	$44
70	Progressive	$530	$44
70	Geico	$589	$49
70	Allstate	$607	$51
70	Utica National Insurance Group	$695	$58
75	Erie Insurance	$351	$29
75	North Carolina Farm Bureau	$356	$30
75	State Farm	$379	$32
75	Nationwide	$469	$39
75	Penn National Insurance	$493	$41
75	Farmers	$530	$44
75	Progressive	$530	$44
75	Geico	$603	$50
75	Allstate	$619	$52
75	Utica National Insurance Group	$695	$58

Read our methodology

Age	Company	Female annual premium	Female monthly premium
16	Erie Insurance	$998	$83
16	North Carolina Farm Bureau	$1,225	$102
16	State Farm	$1,232	$103
16	Nationwide	$1,383	$115
16	Penn National Insurance	$1,666	$139
16	Farmers	$1,792	$149
16	Progressive	$1,792	$149
16	Allstate	$2,104	$175
16	Geico	$2,599	$217
16	Utica National Insurance Group	$3,341	$278
17	Erie Insurance	$797	$66
17	North Carolina Farm Bureau	$896	$75
17	State Farm	$900	$75
17	Nationwide	$1,201	$100
17	Penn National Insurance	$1,215	$101
17	Farmers	$1,307	$109
17	Progressive	$1,307	$109
17	Allstate	$1,746	$146
17	Utica National Insurance Group	$1,997	$166
17	Geico	$2,213	$184
18	Erie Insurance	$693	$58
18	State Farm	$754	$63
18	North Carolina Farm Bureau	$780	$65
18	Geico	$955	$80
18	Penn National Insurance	$1,057	$88
18	Nationwide	$1,108	$92
18	Farmers	$1,137	$95
18	Progressive	$1,137	$95
18	Allstate	$1,700	$142
18	Utica National Insurance Group	$1,736	$145
19	North Carolina Farm Bureau	$367	$31
19	Erie Insurance	$409	$34
19	Penn National Insurance	$493	$41
19	State Farm	$511	$43
19	Farmers	$530	$44
19	Progressive	$530	$44
19	Geico	$615	$51
19	Utica National Insurance Group	$719	$60
19	Nationwide	$874	$73
19	Allstate	$1,043	$87
20	North Carolina Farm Bureau	$367	$31
20	Erie Insurance	$392	$33
20	Penn National Insurance	$493	$41
20	State Farm	$506	$42
20	Farmers	$530	$44
20	Progressive	$530	$44
20	Geico	$615	$51
20	Utica National Insurance Group	$719	$60
20	Nationwide	$790	$66
20	Allstate	$1,034	$86
21	Erie Insurance	$364	$30
21	North Carolina Farm Bureau	$367	$31
21	Geico	$486	$41
21	Penn National Insurance	$493	$41
21	State Farm	$500	$42
21	Farmers	$530	$44
21	Progressive	$530	$44
21	Nationwide	$679	$57
21	Utica National Insurance Group	$695	$58
21	Allstate	$868	$72
22	Erie Insurance	$350	$29
22	North Carolina Farm Bureau	$367	$31
22	Geico	$486	$41
22	Penn National Insurance	$493	$41
22	State Farm	$497	$41
22	Farmers	$530	$44
22	Progressive	$530	$44
22	Nationwide	$615	$51
22	Utica National Insurance Group	$695	$58
22	Allstate	$853	$71
23	Erie Insurance	$344	$29
23	North Carolina Farm Bureau	$367	$31
23	Geico	$475	$40
23	State Farm	$490	$41
23	Penn National Insurance	$493	$41
23	Farmers	$530	$44
23	Progressive	$530	$44
23	Nationwide	$578	$48
23	Utica National Insurance Group	$695	$58
23	Allstate	$835	$70
24	Erie Insurance	$316	$26
24	North Carolina Farm Bureau	$358	$30
24	Geico	$472	$39
24	State Farm	$482	$40
24	Penn National Insurance	$493	$41
24	Farmers	$530	$44
24	Progressive	$530	$44
24	Nationwide	$549	$46
24	Utica National Insurance Group	$695	$58
24	Allstate	$811	$68
25	Erie Insurance	$316	$26
25	North Carolina Farm Bureau	$358	$30
25	State Farm	$457	$38
25	Geico	$466	$39
25	Penn National Insurance	$493	$41
25	Nationwide	$522	$44
25	Farmers	$530	$44
25	Progressive	$530	$44
25	Utica National Insurance Group	$695	$58
25	Allstate	$759	$63
30	Erie Insurance	$316	$26
30	North Carolina Farm Bureau	$341	$28
30	State Farm	$363	$30
30	Nationwide	$459	$38
30	Geico	$472	$39
30	Penn National Insurance	$493	$41
30	Farmers	$530	$44
30	Progressive	$530	$44
30	Allstate	$672	$56
30	Utica National Insurance Group	$695	$58
35	Erie Insurance	$309	$26
35	North Carolina Farm Bureau	$338	$28
35	State Farm	$350	$29
35	Nationwide	$434	$36
35	Geico	$492	$41
35	Penn National Insurance	$493	$41
35	Farmers	$530	$44
35	Progressive	$530	$44
35	Allstate	$664	$55
35	Utica National Insurance Group	$695	$58
40	Erie Insurance	$309	$26
40	State Farm	$331	$28
40	North Carolina Farm Bureau	$338	$28
40	Nationwide	$425	$35
40	Geico	$492	$41
40	Penn National Insurance	$493	$41
40	Farmers	$530	$44
40	Progressive	$530	$44
40	Allstate	$669	$56
40	Utica National Insurance Group	$695	$58
45	Erie Insurance	$298	$25
45	North Carolina Farm Bureau	$313	$26
45	State Farm	$323	$27
45	Nationwide	$420	$35
45	Geico	$492	$41
45	Penn National Insurance	$493	$41
45	Farmers	$530	$44
45	Progressive	$530	$44
45	Allstate	$671	$56
45	Utica National Insurance Group	$695	$58
50	Erie Insurance	$296	$25
50	North Carolina Farm Bureau	$313	$26
50	State Farm	$313	$26
50	Nationwide	$410	$34
50	Penn National Insurance	$493	$41
50	Geico	$516	$43
50	Farmers	$530	$44
50	Progressive	$530	$44
50	Allstate	$638	$53
50	Utica National Insurance Group	$695	$58
55	Erie Insurance	$286	$24
55	State Farm	$307	$26
55	North Carolina Farm Bureau	$313	$26
55	Nationwide	$405	$34
55	Penn National Insurance	$493	$41
55	Geico	$516	$43
55	Farmers	$530	$44
55	Progressive	$530	$44
55	Allstate	$581	$48
55	Utica National Insurance Group	$695	$58
60	Erie Insurance	$286	$24
60	North Carolina Farm Bureau	$313	$26
60	State Farm	$313	$26
60	Nationwide	$405	$34
60	Penn National Insurance	$493	$41
60	Farmers	$530	$44
60	Progressive	$530	$44
60	Geico	$532	$44
60	Allstate	$576	$48
60	Utica National Insurance Group	$695	$58
65	Erie Insurance	$304	$25
65	State Farm	$326	$27
65	North Carolina Farm Bureau	$327	$27
65	Nationwide	$412	$34
65	Penn National Insurance	$493	$41
65	Farmers	$530	$44
65	Progressive	$530	$44
65	Geico	$540	$45
65	Allstate	$604	$50
65	Utica National Insurance Group	$695	$58
70	Erie Insurance	$338	$28
70	North Carolina Farm Bureau	$344	$29
70	State Farm	$347	$29
70	Nationwide	$429	$36
70	Penn National Insurance	$493	$41
70	Farmers	$530	$44
70	Progressive	$530	$44
70	Geico	$589	$49
70	Allstate	$601	$50
70	Utica National Insurance Group	$695	$58
75	Erie Insurance	$351	$29
75	North Carolina Farm Bureau	$356	$30
75	State Farm	$379	$32
75	Nationwide	$469	$39
75	Penn National Insurance	$493	$41
75	Farmers	$530	$44
75	Progressive	$530	$44
75	Geico	$603	$50
75	Allstate	$618	$52
75	Utica National Insurance Group	$695	$58

Read our methodology

North Carolina minimum coverage cost by city

Winston-Salem drivers pay the least for minimum coverage in North Carolina at $474. However, Charlotte pay the most at $597.

Car insurance rates vary by city. For example, drivers in larger cities with a high traffic volume or vehicle theft rate pay higher rates.

The table below shows average minimum coverage rates for cities in North Carolina.

City	Average annual premium	Average monthly premium
Winston-Salem	$474	$39
Cary	$495	$41
Durham	$520	$43
High Point	$522	$43
Greensboro	$536	$45
Raleigh	$545	$45
Wilmington	$550	$46
Concord	$553	$46
Fayetteville	$578	$48
Charlotte	$597	$50

Read our methodology

Optional car insurance coverage in North Carolina

North Carolina requires drivers to carry car insurance to pay for injuries and damages caused to others. However, drivers don't have to carry coverage for their vehicle unless required by a loan or lease.

Drivers may choose optional coverages such as:

Collision. Collision coverage pays for damages to your vehicle if you cause an accident.
Comprehensive. This coverage pays for damages to your car unrelated to an accident, such as fire, flood, falling debris, and hail.
Rental car coverage. This pays for a rental car if your vehicle is being repaired for a covered claim and usually has time and cost limits.
Roadside assistance. If you run out of gas, need a tire changed, or have a dead battery roadside assistance will send someone to help.
Gap. Gap coverage pays the difference between what you owe on a car loan and the vehicle's value.

Why do limits change?

"Several states have minimum requirements of property damage of $10,000-$25,000," says Zack Pope, agency manager at David Pope Insurance in Missouri. "[Given] the current values of vehicles, that's extremely antiquated values of coverage and a main reason that I personally do not offer less than 100/300/100 to customers. It is significantly easier to see a car on the road that is valued at $100,000 than it has been in the past."

Methodology

Insurance.com commissioned state minimum car insurance rates from Quadrant Information Systems based on a 40-year-old driver with good credit and a clean driving history, driving a 2023 Honda Accord LX. Rates are based on all coverages required by law at minimum coverage limits. Rates were also fielded for various additional age groups. State laws were gathered from state DMV and insurance department websites.

[state_from_state_link attr={customh2:Compare state minimum requirements with other states^placeholder_to_fetch:North Carolina $476}/]

North Carolina car insurance laws and requirements: FAQs

Will my bare minimum car insurance cover me in another state?

Yes, your car insurance covers claims in another state, even if the minimums are higher in the other state.

What happens if I drive without car insurance in North Carolina?

If you're caught driving without car insurance in North Carolina, you may face fines, a driver's license suspension, having your vehicle impounded, and increased car insurance rates. Additionally, you may face jail time, especially for multiple violations.

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