North Carolina car insurance: minimums, SR-22 rules and costs
Last updated: November 12, 2026
North Carolina drivers must carry at least $50,000/$100,000 of bodily injury liability and $50,000 of property damage liability, plus uninsured motorist (UM) and underinsured motorist (UIM) coverage. In 2023, insured drivers in North Carolina spent an average of $925.08 on car insurance, 28% below the national average of $1,281.60, according to the National Association of Insurance Commissioners (NAIC). That makes North Carolina the 8th least expensive of the 50 states and D.C. by that measure.
Minimum car insurance required in North Carolina
| Coverage | Minimum |
|---|---|
| Bodily injury liability, per person | $50,000 |
| Bodily injury liability, per accident | $100,000 |
| Property damage liability, per accident | $50,000 |
| Uninsured motorist (UM) | Required |
| Underinsured motorist (UIM) | Required |
You'll often see this written as 50/100/50. The first two numbers are the bodily injury limits in thousands of dollars (per person and per accident), and the last is property damage. Those amounts are the most the policy pays for injuries and damage you cause to others. Anything above them can come back to you personally.
North Carolina raised its minimums from 30/60/25 to 50/100/50 for policies issued or renewed after July 1, 2025. Underinsured motorist coverage is now included in all new and renewed policies.
Is North Carolina a no-fault state?
No. North Carolina isn't one of the 12 no-fault states listed by the Insurance Information Institute, so the driver who causes a crash, and their insurer, is generally responsible for the other people's injuries and damage. That's why the liability limits above matter so much.
SR-22 rules in North Carolina
North Carolina's DMV doesn't use the SR-22 name on its insurance pages. To prove insurance, it accepts a DL-123 form from a North Carolina insurer, among other documents. Insurers must tell the DMV when a policy is canceled or lapses, and the owner gets a notice. Since October 1, 2026, you have 30 days to respond (it used to be 10).
If coverage really lapsed, the plate can be revoked, and getting it back means a civil penalty of $50, $100 or $150, depending on how many lapses you've had in the past three years. If you were insured the whole time, your insurer can file a Certificate of Insurance (FS-1) to clear it.
Read more: what an SR-22 is and how it works.
What drives car insurance costs in North Carolina
Average spending in North Carolina rose 23% from 2019 to 2023, compared with 19% nationwide. Here's average annual spending per insured vehicle, from the NAIC:
| Year | North Carolina average | U.S. average |
|---|---|---|
| 2019 | $753.96 | $1,075.08 |
| 2020 | $765.96 | $1,047.76 |
| 2021 | $789.17 | $1,060.23 |
| 2022 | $839.28 | $1,124.45 |
| 2023 | $925.08 | $1,281.60 |
The NAIC's "average expenditure" is total written premium divided by insured vehicles. It isn't a quote, and your own price depends on your driver profile and the coverage you choose.
- Uninsured drivers. An estimated 11.8% of drivers in North Carolina were uninsured in 2023, lower than the national estimate of 15.4%. That's the 23rd lowest rate among the 50 states and D.C. When more drivers are uninsured, insured drivers' own uninsured motorist coverage pays more claims, which pushes up its price.
- Crash deaths. North Carolina recorded 1,619 motor vehicle crash deaths in 2024, or 1.24 per 100 million miles driven, higher than the U.S. rate of 1.19 (the 22nd highest of the 50 states and D.C.). Severe crashes drive up bodily injury claim costs.
- Where and how crashes happen. In 2024, 62% of North Carolina's crash deaths happened in rural areas (U.S.: 41%), 42% involved speeding (U.S.: 29%), and 16% of those killed were pedestrians (U.S.: 18%).
Ways to save on car insurance in North Carolina
- Compare at least three quotes. Insurers weigh the same facts differently, so prices for the same driver in North Carolina can vary widely. More ways to lower your bill.
- Check your uninsured motorist limits anyway. Even at 11.8%, uninsured and underinsured drivers are common, and UM coverage is usually inexpensive. How UM coverage works.
- Shop at every renewal. Prices in North Carolina rose faster than the national average from 2019 to 2023, so a renewal increase is a good reason to compare.
- Keep comprehensive if your car is worth it. Most crash deaths in North Carolina happen on rural roads, where animal strikes and long distances are common. Comprehensive covers hitting an animal; collision covers crashes. Comprehensive vs. collision.
- Ask about discounts. Common ones include safe driver, multi-car, bundling, paying in full, good student and usage-based programs. They're not always applied automatically.
See other states in our car insurance guides by state.
Sources
- Insurance Information Institute, Automobile Financial Responsibility Limits and Enforcement by State (as of July 2024)
- NAIC, 2023 Auto Insurance Database Average Premium Supplement (June 2025), Table 4: average expenditure
- North Carolina DMV, Insurance requirements
- North Carolina Department of Insurance, Changes to the rating of automobile insurance policies effective July 1, 2025
- Insurance Information Institute, Background on: No-fault auto insurance
- North Carolina DMV, Proving insurance
- Insurance Information Institute / Insurance Research Council, Facts + Statistics: Uninsured motorists (2023 estimates)
- IIHS-HLDI, Fatality Facts 2024: State by state
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