How Much Car Insurance Do I Need in North Carolina?

North Carolina law requires every registered vehicle to carry at minimum: $30,000 bodily injury liability per person, $60,000 bodily injury liability per accident, and $25,000 property damage liability. NC also requires uninsured motorist coverage at those same limits. Comprehensive and collision coverage are not required by law but are required by lenders on financed or leased vehicles.

For most drivers with significant assets, no. If you cause a serious accident and someone sustains major injuries, medical bills can easily exceed $50,000 per person. If your liability limits are exhausted, you are personally responsible for the remainder. That means your savings, home equity, and other assets are at risk. Most financial professionals recommend at least $100,000 per person / $300,000 per accident for drivers who own a home or have meaningful savings.

If you own a home in North Carolina, carrying minimum liability limits puts that asset at risk in a serious accident. A common recommendation for homeowners is $100,000 per person / $300,000 per accident bodily injury and $100,000 property damage. Layering a personal umbrella policy on top provides an additional $1 million or more in liability coverage at a low annual cost, typically $150 to $300 per year.

If your vehicle is financed or leased, your lender requires comprehensive and collision coverage. If your vehicle is paid off, the choice is yours. The general rule: if your car is worth significantly more than the annual cost of those coverages over two to three years, keeping them makes financial sense. If your vehicle is older and low in value, liability only may be the smarter choice.

Uninsured motorist (UM) coverage pays for your injuries and damages when an at-fault driver has no insurance. It is required in North Carolina at the same limits as your liability coverage. Underinsured motorist (UIM) coverage is optional and covers the gap when an at-fault driver's limits are not enough to cover your losses. Given the number of uninsured drivers on NC roads, carrying both is strongly recommended.