North Carolina Raises Minimum Auto Insurance Liability Limits

Higher liability limits mean better protection, but also new decisions for drivers and businesses.

Published on Feb. 3, 2026

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North Carolina has updated its auto insurance laws, increasing the state's minimum liability limits to $50,000 per person, $100,000 per accident for bodily injury, and $50,000 for property damage. The change reflects the rising cost of medical care, vehicle repairs, and litigation, and it's designed to provide better financial protection after a crash. For drivers and businesses alike, the update is a prompt to review coverage and make sure policies still fit real-world risks.

Why it matters

The new limits mean more protection if you cause an accident, but policies built around the old limits may no longer comply or may leave gaps when costs exceed expectations. Experienced insurance agencies can help drivers and businesses understand the changes and ensure they have the right coverage.

The details

The law change means the minimum liability limits in North Carolina are now $50,000 per person, $100,000 per accident for bodily injury, and $50,000 for property damage. This is designed to provide better financial protection after a crash, as the costs of medical care, vehicle repairs, and litigation have risen. Drivers and businesses now need to review their coverage to make sure it still fits their needs under the new limits.

  • The new auto insurance law in North Carolina went into effect on February 3, 2026.

The players

Tom Needham Insurance Agency

An independent insurance agency serving Greensboro, North Carolina drivers, families, and business owners with a consultative approach to help them understand their coverage options and choose the right policies.

Tom Needham

The owner of Tom Needham Insurance Agency, who advises clients on navigating insurance changes and choosing the right coverage for their needs.

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What they’re saying

“The law change is a wake-up call. Minimum limits are just that; minimums. Our job is to help clients understand how coverage works together, so they're not surprised by out-of-pocket costs after an accident.”

— Tom Needham, Owner, Tom Needham Insurance Agency (texasnewsheadlines.com)

“Independent advice matters more than ever. When laws change, rates shift and carriers respond differently. We help clients navigate those changes with clear explanations and options, so they can choose coverage with confidence.”

— Tom Needham, Owner, Tom Needham Insurance Agency (texasnewsheadlines.com)

What’s next

Drivers and businesses in North Carolina should review their auto insurance policies to ensure they meet the new minimum liability limits and provide adequate coverage for their needs.

The takeaway

The increase in North Carolina's auto insurance liability limits is designed to better protect drivers and businesses, but it also requires them to carefully review their coverage to avoid gaps or unexpected out-of-pocket costs. Working with an experienced insurance agency can help navigate these changes and ensure the right policies are in place.