North Carolina residents need to be aware of changes to the rating of automobile insurance policies that will take effect July 1, 2025. The changes are the result of recently enacted legislation.¹ The changes may impact insurance premiums for policyholders and both experienced and inexperienced drivers.

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Higher Minimum Coverage Limits

Starting with renewals on or after July 1, 2025, North Carolina will raise the minimum required coverage for auto insurance. Here's what's changing:

Bodily Injury coverage (for injuries you cause to others):

Property Damage coverage (for damage you cause to others' vehicles or property):

What this means for you:

If you currently carry only the state minimum, your coverage — and your premium — will adjust automatically at your next renewal after July 1, 2025.

If you already carry higher limits, you may not see a change related to this update.

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Expanded Uninsured and Underinsured Motorist Coverage

Starting July 1, 2025, all auto insurance policies in North Carolina will automatically include:

The new law broadens the protections offered under UIM coverage, giving drivers stronger financial protection after accidents.

Note: The exact rate changes for this expanded coverage are still being worked out by the North Carolina Rate Bureau.

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Changes to Prayer for Judgment Continued (PJC)

Starting July 1, 2025, the rules around using a Prayer for Judgment Continued (PJC) will change:

In short: If you haven't used a PJC in the last five years, you can still use one without your insurance premium going up.

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Big Changes Coming for New Drivers

If you or someone in your household will be getting their driver's license for the first time, here's an important update:

Discounts may eventually be available for inexperienced drivers who stay accident- and violation-free, but details are still being worked out.

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Changes to How Convictions Impact Rates

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