Basic North Carolina Auto Insurance Requirements Explained

The Catawba River Insurance Group • December 16, 2024

Driving without insurance isn’t just a reckless decision; it’s also illegal. State law requires all drivers to have auto insurance while on the road, and there are specific minimum requirements for what these insurance policies need to cover. Although there are additional protections you can choose for your auto insurance plan , there are two basic requirements all policies must meet: liability coverage and uninsured/underinsured motorist coverage.

Liability coverage pays for injury, pain and suffering, property damage, and lost wages you cause another driver in an at-fault accident. The minimum requirement is known as the 30/60/25 rule, which includes:

  • $30,000 bodily injury coverage per person refers to the total dollar amount paid for one person you injure.
  • $60,000 bodily injury coverage per accident is the maximum amount paid for all injuries caused in accidents where more than one person is injured.
  • $25,000 property damage per accident refers to the total amount you’ll pay for damages you cause in an at-fault accident.

An important part of auto insurance is uninsured/underinsured motorist coverage. This component helps cover injuries and lost wages suffered by you or your passengers after getting into an accident with an uninsured or underinsured driver. The 30/60/25 rule applies here too:

  • $30,000 bodily injury coverage refers to the highest amount your insurance company will pay for a single person.
  • $60,000 bodily injury coverage per accident is the total amount your insurance company will pay for all injuries if more than one person in your vehicle was hurt.
  • $25,000 property damage per accident refers to the total dollar amount your insurance company will pay for damage to your vehicle that was caused by the other driver.

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