During the 2023 and 2024 North Carolina General Assembly sessions, legislation was introduced
and passed that impacts North Carolina vehicle insurance. Some of this legislation is complex
and specific implementation questions are still being addressed. While none of the changes to
rating and coverage requirements go into effect until 7/1/2025, the following is a summary of the
legislative changes that impact rates and coverage. As we get closer to the 7/1/2025 effective date
of these changes, further details will be provided.

Minimum BI and PD limits
For all new and renewal NC liability policies effective on and after 7/1/2025, the minimum Bodily
Injury limits shall increase from $30,000 per person/$60,000 per accident to $50,000 per
person/$100,000 per accident. Property Damage Liability minimum limits shall change from
$25,000 per accident to $50,000 per accident.

UM and UIM
For all new and renewal liability policies effective on and after 7/1/2025, every policy shall include
BOTH Uninsured Motorists (UM) and Underinsured Motorists (UIM) coverage. Concurrent with this
change, statutory language has been changed by the NC General Assembly that broadens UIM
coverage. The increased rates for UIM coverage have not yet been determined by the North
Carolina Rate Bureau and North Carolina Reinsurance Facility.

Inexperience
For drivers obtaining their driver’s license for the first time on and after 7/1/2025, the inexperience
period will increase from 3 years to 8 years. This change does not impact drivers licensed prior to
7/1/2025. Concurrent with this change, there may also be “discounts” prescribed to reduce the
inexperience surcharge for drivers that remain at-fault accident free and conviction free (including
PJC’s) The surcharge factors and inexperienced discounts have not yet been determined by the
North Carolina Rate Bureau and North Carolina Reinsurance Facility.

Major (4 pts and higher) Convictions
For all convictions occurring on and after 7/1/2025 which assign 4 or more SDIP points (other than
speeding in excess of posted speed limit) , the conviction shall have a chargeability period of not
less nor more than FIVE years (previously three years).

Waivable Speeding
Convictions of “speeding less than 10 miles per hour over the posted speed limit” occurring on and
after 7/1/2025 will still be “waived” as long as there are no chargeable convictions (other than a
PJC) in the previous FIVE Year (currently three year) period.

PJC’s (Prayer for Judgement Continued)
Effective 7/1/2025, a Prayer for Judgement Continued (PJC) for any violation shall not carry a
premium surcharge unless there is another PJC in the prior FIVE years (currently three years)