At Granite Insurance, our purpose is simple: Empowering You. That includes helping our clients stay ahead of legislative changes that affect their lives and assets. Whether you’re managing multiple vehicles across your properties or ensuring your family is fully protected, staying informed is the first step toward smart risk management. North Carolina’s upcoming changes to auto insurance laws are significant. Here’s what you need to know.
1. Increased Minimum Liability Coverage
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Bodily Injury: Raising from $30,000 per person / $60,000 per accident to $50,000 per person / $100,000 per accident.
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Property Damage: Increasing from $25,000 to $50,000 per accident.
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Impact: These adjustments provide better financial protection in accidents but may lead to modest premium increases, estimated around 5% for most policy holders.
2. Mandatory Uninsured/Underinsured Motorist (UM/UIM) Coverage
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Requirement: All policies must include UM/UIM coverage at the new minimum limits.
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Benefit: Eliminates the “liability setoff,” allowing full collection from your UM/UIM policy regardless of the at-fault driver’s coverage.
3. Extended Inexperience Period for New Drivers
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Change: Drivers obtaining their license on or after July 1, 2025, will be considered “inexperienced” for eight years, up from three.
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Implication: Potentially higher insurance premiums for a longer duration.
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Mitigation: Safe driving discounts may become available for those who remain accident- and violation-free during this period.
4. Adjustments to Violation Impact
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Major Convictions: Infractions resulting in four or more points (excluding speeding) will affect insurance rates for five years, extended from three.
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Minor Speeding: Speeding less than 10 mph over the limit can still be waived if no other chargeable convictions exist in the past five years.
Recommendations for Policy Holders
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Review Your Policy: Ensure your coverage meets the new minimum requirements.
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Consider Higher Coverage: Evaluate if higher limits or additional protections like umbrella policies are suitable for your needs.
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Educate New Drivers: Inform young or new drivers about the extended inexperience period and the importance of maintaining a clean driving record.
These updates may bring new costs—but they also offer stronger protection and peace of mind. Now is the perfect time to evaluate your policies, educate young drivers in your household, and consider higher coverage limits that align with your lifestyle. At Granite, we go beyond the policy to offer professional guidance and personalized support. Have questions or need help navigating these changes? We’re here for you.
