Understanding Auto Insurance Coverage in North Carolina

North Carolina operates in an at-fault system, meaning the person who causes a car accident must pay for the resulting losses. But an injured person who is even 1 percent at fault is barred from any recovery.

Meeting the minimum car insurance coverage mandated by the state gives drivers breathing room if a serious crash occurs, but insurers may still delay, deny, or underpay valid claims. When that happens, our North Carolina auto accident attorneys at The Morgan Law Group stand ready to safeguard your rights, negotiate aggressively, and, when needed, litigate for your full compensation.

North Carolina’s Fault Insurance System

Because North Carolina is a fault state, an injured motorist can:

• File a third-party claim against the negligent driver’s insurer.
• Tap first-party coverages such as MedPay, collision, or UM/UIM while fault is sorted out.
• Sue the at-fault driver for losses exceeding insurance limits.

Yet the state’s pure contributory negligence rule turns many otherwise solid cases into zero-recovery outcomes if at-fault drivers persuade a jury that the injured person shared even minimal blame, changing lanes too early, glancing at a phone, or braking late.

North Carolina’s Required Auto Insurance Coverage 

North Carolina requires every vehicle registered in the state to carry liability insurance and uninsured/underinsured motorist coverage. These mandatory limits protect other road users if another driver causes a car accident.

Minimum Liability Coverage

The current 30/60/25 limits remain enforceable until June 30, 2025. 

• $30,000 – bodily injury liability per person
• $60,000 – bodily injury liability per accident
• $25,000 – property damage liability per accident

Uninsured/Underinsured Motorist Coverage

North Carolina also mandates UM and UIM protection on every passenger-vehicle policy. 

The limits must match your liability coverage limits:

• $30,000 – uninsured/underinsured motorist bodily injury per person
• $60,000 – uninsured/underinsured motorist bodily injury per accident
• $25,000 – uninsured motorist property damage per accident

Note: Senate Bill 452 replaces the long-standing 30/60/25 minimum insurance coverage with 50/100/50 starting July 2025. Still, carrying more than the minimum is strongly recommended to avoid out-of-pocket exposure. 

Other Insurance Coverage Beyond the Minimum Requirements

North Carolina car insurance coverage can be customized far beyond statutory mandates: 

• Medical Payments: Pays your medical bills (and sometimes funeral costs) regardless of fault. Crucial in a contributory-negligence state where your liability claim could be barred. 
• Collision Coverage: Repairs or replaces your vehicle after a crash with another car or object. Protects newer or financed cars and speeds up repairs while fault is disputed. 
• Comprehensive Coverage: Covers theft, vandalism, fire, and animal strikes. North Carolina’s coastal storms and deer collisions make this prudent.
• Gap Insurance: Pays the loan/lease balance if your car is totaled but worth less than you owe. Prevents out-of-pocket debt on rapidly depreciating vehicles.
• Roadside Assistance: Tows, jump-starts, or changes a flat. Adds convenience on rural highways stretching from the mountains.
• New Car Replacement: Replaces a totaled new vehicle with the same model, not depreciated value. Ideal for drivers of high-value, first-owner cars.

Buying these add-ons not only closes dangerous gaps but can also unlock multi-policy discounts while boosting overall North Carolina auto insurance coverage.

Average Cost of Car Insurance in North Carolina 

Despite the new 50/100/50 limits, the state remains one of the nation’s more affordable markets. 

According to Bankrate, the average cost for:

• Minimum Coverage Policy: $536 per year 
• Full-Coverage Policy: $1,827 per year

Keep in mind that individual premiums vary by ZIP code, driving record, vehicle type, credit, and chosen deductibles.

Filing an Auto Insurance Claim in North Carolina

After an auto accident in North Carolina, filing your insurance claim without delay is key to securing coverage for medical treatment, vehicle repairs, and lost income. 

• Call 911: A formal police report documents the scene, records witness statements, and provides an objective account of events. This report becomes a foundational piece of evidence when you or your attorney negotiate with insurers or pursue a lawsuit down the road.

• Exchange Information: At the scene, exchange names, driver’s license numbers, insurer names, and policy numbers with all involved parties. Take clear, time stamped photos or videos of vehicle damage, skid marks, road conditions, traffic signals, and any visible injuries. 

• Notify Your Insurer: North Carolina policies typically mandate prompt reporting. Failing to notify your insurer in a timely manner can lead to claim denials or coverage disputes.

• Document Losses: Compile and organize every relevant document: hospital and doctor bills, pharmacy receipts, physical therapy statements, pay stubs reflecting lost income, and detailed repair estimates from reputable auto shops.

• Choose the Right Insurance Claim:

• First-party claim under collision/MedPay/UM/UIM when the at-fault driver is unidentified or uninsured.
• Third-party claim against the negligent driver’s insurer when fault is clear.

• Cooperate with Adjusters: An adjuster will interview you, inspect your vehicle, and review medical records. Provide factual answers – but avoid speculation, assigning blame, or accepting recorded statements without consulting an attorney.

• Escalate if Undervalued: North Carolina law allows appraisal, Department of Insurance complaints, or litigation when offers are unfair. An auto accident attorney can craft a persuasive demand package or sue within the three-year statute of limitations for property damage and bodily injury claims.

Whether you pursue a first-party claim under your own coverage or a third-party claim against a negligent driver, prompt action and organized records lay the groundwork for a fair settlement.

Entrusting Your Auto Insurance Claim to Our Accident Attorneys in North Carolina

When rigid North Carolina car insurance laws, higher 50/100/50 minimums, and the harsh contributory negligence rule collide with an insurer’s refusal to pay, you need strategic, proven advocates. 

The Morgan Law Group works with accident-reconstruction specialists, leverages policy language, and, should negotiations stall, files a lawsuit to secure every dollar you deserve for medical expenses, lost income, pain and suffering, and property damage. Our results and testimonials show how meticulous preparation yields top-tier outcomes. 

From initial claim notice through settlement or trial, our North Carolina auto accident attorneys shoulder the legal load so you can focus on healing, confident that seasoned professionals are fighting for justice on your behalf. Call us today or complete our contact form to schedule your free consultation.