How Will the July 2025 North Carolina Auto Insurance Policy Changes Affect Your Insurance Premiums?

Charlotte residents should prepare for significant changes to their auto insurance policies beginning July 1, 2025. Recent legislation has altered several key aspects of North Carolina's insurance regulations, which may increase premiums for many policyholders. 

Our experienced Charlotte traffic ticket lawyers at Browning & Long, PLLC, understand North Carolina’s auto insurance changes and how they could affect your insurance premiums, especially if you are an inexperienced driver or are issued a traffic ticket. We’re also here to fight your traffic citation to help you avoid the penalties you face and the higher auto insurance premiums you could have to pay for years.

What Increased Minimum Liability Limits Will You Have to Pay Under the 2025 North Carolina Auto Insurance Law?

One of the most significant changes in auto insurance under the 2025 North Carolina law is increasing minimum liability coverage limits. Starting July 1, 2025, all new or renewed policies must provide at least:

• $50,000 per person for bodily injury (up from $30,000)
• $100,000 per accident for bodily injury (up from $60,000)
• $50,000 per accident for property damage (up from $25,000)

If you currently have the minimum liability insurance limit, you should expect your premiums to increase when your auto insurance policy is renewed to account for the higher required coverage.

Will You Have to Purchase Mandatory Underinsured Motorist Coverage Under the New North Carolina Law?

Another North Carolina auto insurance change that will increase your premiums is the requirement that you purchase underinsured motorist coverage. As of July 1, 2025, all auto insurance policies must include underinsured motorist coverage. This protection, which was previously optional for minimum-limit policies, helps cover expenses when an at-fault driver's liability limits are insufficient to fully compensate for damages.

The new law also modifies how underinsured motorist coverage is applied:

• Coverage limits are determined by the total damages sustained by the claimant, rather than the at-fault driver's liability limits.
• Benefits, except for workers' compensation, cannot be reduced by setoffs or credits against other coverages.
• If a claimant has multiple underinsured motorist policies, the total coverage is the sum of the highest limit from each policy.

How Could the Extended Inexperienced Operator Surcharge Affect Your Auto Insurance Premiums?

Insurers apply a premium surcharge for drivers with limited experience, known as the inexperienced operator surcharge. Under this North Carolina insurance change, you will have to pay higher premiums for longer if you are a new driver. Beginning July 1, 2025, here are how the law changes would affect you: 

• The surcharge will apply for the first eight years of driving experience (up from three years).
• Surcharges for years four through eight will be lower than those for years one through three.
• The surcharge will progressively decrease as driving experience increases.

What Are the Increased Penalties for Serious Traffic Violations Under North Carolina’s Insurance Changes?

Convictions for moving traffic violations resulting in four or more insurance points under the Safe Driver Incentive Plan (SDIP) will trigger a five-year premium surcharge, up from the current three-year period. This change applies to convictions occurring on or after July 1, 2025, except for speeding over 10 mph over the limit.

Will the Expanded Lookback Period for a Prayer for Judgment Continued Affect You If You Get a Minor Speeding Ticket?

A Prayer for Judgment Continued (PJC) in North Carolina allows a defendant to plead guilty or no contest to a charge without the court entering a final judgment or conviction. If a PJC is granted in your traffic ticket case, the court would suspend the imposition of a sentence and place you on probation, allowing you to comply with specific conditions and avoid a formal conviction on your record.

Currently, convictions for speeding 10 mph or less over the limit and Prayers for Judgment Continued (PJCs) are waived for insurance purposes if you have no other moving violations within the preceding three years. As of July 1, 2025, this lookback period will increase to five years for these minor violations and PJCs occurring after that date.

How Our Charlotte Traffic Ticket Lawyers Can Help

At Browning & Long, PLLC, our skilled traffic ticket attorneys stay current on all North Carolina auto insurance changes and how they could affect you if you are convicted of a traffic violation. We can help you understand how the July 2025 updates may affect your policy and premiums and explore strategies to minimize potential increases. 

If you've received a traffic ticket, our legal team will work diligently to protect your rights, driving record, and insurance rates. We will raise all viable defenses, negotiate with prosecutors for reduced charges or penalties, or even seek a Prayer for Judgment Continued when appropriate. Our lawyers will do everything possible to minimize your traffic citation's harsh penalties and the hidden costs in your life.