Understanding the risks of relying on the legal minimums for auto insurance coverage
In North Carolina, state law requires drivers to carry a minimum amount of liability insurance, $30,000 per person in bodily injury coverage and $60,000 per accident. However, On July 1, 2025, minimum requirements will become $50,000 per person and $100,000 per accident. But while these limits satisfy the legal requirement, they may not go far enough to protect you financially after a serious crash.
Why $30,000 Might Not Be Enough
Many drivers assume the required minimum coverage will be enough to handle medical bills in a typical car accident. But in reality, a single emergency room visit, ambulance transport, imaging, and hospital stay can easily exceed that amount.
If you cause an accident and the other party’s damages total $45,000, but you only have the minimum $30,000 in coverage, you may be personally responsible for the remaining $15,000. If you don’t have that money readily available, your personal assets like your savings or home could be at risk.
Even if the injured person chooses to accept the policy limits offered by your insurance company, they are not required to do so. That means your liability may extend beyond what your insurer pays out.
The Good News: More Coverage Costs Less Than You Think
Upgrading your auto insurance policy to provide greater protection is typically very affordable. For example:
- $30,000 in bodily injury coverage may cost around $40/month.
- Increasing that limit to $300,000 might only raise your premium by $8–10/month.
That small difference can provide major peace of mind if you’re ever involved in a serious accident.
Uninsured Motorist Coverage: Required but Often Inadequate
North Carolina also mandates uninsured motorist (UM) coverage, which protects you if you’re injured by a driver who doesn’t carry any insurance. The required limit is also $30,000, but again, that amount often falls short of covering real-world costs like:
- Extended hospital care
- Lost wages
- Physical therapy
- Long-term disabilities
Many drivers assume UM coverage protects them completely in this scenario, only to discover later that even basic treatment may exceed the policy limits.
What About Underinsured Motorist Coverage?
Unlike UM coverage, underinsured motorist (UIM) coverage is optional in North Carolina, but it’s one of the smartest additions you can make to your policy.
This coverage helps protect you if:
- You’re injured in an accident caused by someone else
- That person doesn’t have enough insurance to cover your losses
In other words, UIM steps in when another driver’s policy falls short. Like liability and UM coverage, it can typically be increased for just a few extra dollars per month.
What’s Changing in 2025?
Senate Bill 452 will increase the minimum required limits in North Carolina as of July 1, 2025, to:
- $50,000 per person
- $100,000 per accident
While this change provides slightly more protection, it still may not be enough in high-cost accident scenarios. If you haven’t reviewed your policy in a while, now is a good time to do so with your insurance agent or speak to a qualified attorney if you’ve already been injured and need help understanding your options.
Don’t Wait Until It’s Too Late
Serious accidents happen when you least expect them. If you’re relying on minimum insurance coverage, you may be putting your financial future at risk.
At Shankle Law Firm, we help injured individuals understand their rights and pursue the compensation they deserve. Whether you’ve been in a crash, or you’re simply unsure whether your insurance policy provides enough protection, we’re here to help.
Call today for a free consultation with Attorney Maggie Shankle.
Maggie is a Board-Certified Workers’ Compensation Specialist and an experienced personal injury attorney who has helped countless North Carolinians protect themselves and their families after serious accidents.
We're here when you need clarity, compassion, and answers. Let’s talk.
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