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Insurance North Carolina: A Guide to Auto & Home Coverage

Explore North Carolina insurance requirements for auto and home coverage. Learn about liability limits, flood risks, and tips for affordable options.

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North Carolina is known for its diverse landscape, from the Appalachian Mountains to the Atlantic Coast. However, the Tar Heel State is also prone to natural disasters, making auto and homeowners insurance essential for its residents. This guide breaks down North Carolina insurance, including tips for finding affordable policies.

North Carolina Insurance Requirements

North Carolina requires drivers to have auto insurance that meets the state's minimum insurance coverages. This includes liability insurance as well as uninsured and underinsured motorist coverage. In 2023 the state passed a new law raising the minimum limit. As of 2025, the new limits are:

  • Bodily injury: $50,000 per person
  • Property damage: $50,000 per accident
  • Total per accident: $100,000 per accident

Understanding NC's Minimum Auto Insurance Coverage

Beyond liability car insurance, the state mandates you carry underinsured and uninsured motorist coverage. These cover you if an at-fault driver doesn't have enough insurance to pay for damages or has no coverage at all. North Carolina car insurance policies with minimum liability limits must include coverage for uninsured motorists. The limit is equal to the highest limits of your bodily injury liability policy.

Under the new law, the way uninsured coverage is paid out will change. Previously, an auto insurance company could subtract the liable driver's payout from the uninsured coverage payout. Now, insured drivers can receive the full amount from their uninsured motorist policy. This is added to any payout from the liable driver, even if they don't have insurance.

Finally, there is MedPay, or medical payments coverage, which covers medical bills and funeral expenses regardless of who was at fault. Because you can't use your insurance policy to pay for your own medical expenses, you may want to consider this add-on, especially if you don't have health insurance.

Review the insurance requirements of your state:

The Importance of Home Insurance in Coastal Areas

Although not legally required, you should carry home insurance in North Carolina, especially if you live in a hurricane-prone area. In 2024 alone, Hurricane Helene cost North Carolina residents close to $60 billion. Unfortunately, a standard insurance policy will likely not offer enough coverage if there is another similar natural disaster.

A standard homeowner's policy will cover fire, theft, and liability but doesn't include flood or wind damage. You will need to add these policies separately.

Flood Insurance: A Must-Have for Hurricane-Prone Areas

If you live in a flood-prone area, you should purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer. These policies cover both property damage and the cost of repairing or replacing your belongings in the case of a flood.

Windstorm damage also requires a rider or separate policy. The North Carolina Insurance Underwriting Association (NCIUA), also known as the Coastal Property Insurance Pool, writes this coverage. Given the increasing occurrences of hurricanes and other natural disasters, you should regularly review your policies to make sure your home and family are protected.

Tips for Comparing Auto and Home Insurance Policies

Here are tips to help you find an insurance policy that is right for you.

Shop Around

You should always get quotes from multiple insurance companies in North Carolina. Rates can vary significantly, even for the same coverage. Make sure you look at the benefit coverages and policy limits side by side so you are comparing apples to apples. In addition to the price, look at the insurers' customer service, financial strength, and more. You want to evaluate the overall value an insurer brings.

Assess Coverage Needs

Get coverage tailored to your specific needs. What may be right for another person may not be right for you. For example, if you drive an older car, you might skip collision coverage, and if you live near the coast, you should get flood insurance.

Check Discounts

Ask the insurers what discounts they offer, such as safe driver discounts for auto policies or home security discounts for home insurance. Don't leave money on the table!

Finding Affordable Auto and Home Insurance in North Carolina

North Carolina residents can find affordable insurance options by following these steps:

Use Online Comparisons

Online tools allow you to compare policies quickly, helping you find cheap car insurance in North Carolina. You should compare rates every year as insurance prices in North Carolina can change unexpectedly.

Bundle Policies

Many insurers offer discounts if you bundle auto and home insurance. This can save you money without compromising coverage.

Review Deductibles

Higher deductibles typically mean lower premiums, but make sure you can afford the out-of-pocket costs in case you have a claim.

Understand Your Risk Profile

Insurance rates depend on factors such as your driving record, credit score, and where you live. Focus on changing things you can control, like improving your credit score and avoiding traffic tickets.

Understanding North Carolina-Specific Insurance Regulations

The North Carolina Department of Insurance (DOI) regulates the state's insurance industry. Visit the website or call toll-free at 855-408-1212 if you have questions about any insurance coverage types.

The North Carolina Rate Bureau regulates insurance rates in North Carolina. This Bureau helps make sure that you get fair insurance quotes.

Start Saving on Your Car Insurance Today

Take the first step today and find cheap insurance in North Carolina. Use EverQuote's quote comparison tool to find the right insurance for you. It's free and easy to use and could save you hundreds of dollars.

FAQs

What type of insurance is required in NC?
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North Carolina law requires drivers to have liability insurance and uninsured/underinsured motorist coverage. While home insurance is not mandated by state law, the terms of your mortgage may require it.
What is North Carolina state insurance called?
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North Carolina's state insurance program is called NC Medicaid. It provides health care coverage for low-income individuals and families who cannot afford it.
Who has the cheapest auto insurance rates in NC?
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The cheapest auto insurance provider depends on factors such as your demographic, driving history, and coverage needs. Use comparison tools to find affordable options tailored to your profile.
What is the new insurance law in NC?
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Recent updates to North Carolina insurance laws increased the minimum liability limits in 2025:
  • Bodily injury: The minimum liability limit increases from $30,000 to $50,000 per person.
  • Property damage: The minimum liability limit increases from $25,000 to $50,000 per accident.
  • Total per accident: The minimum liability limit increases from $60,000 to $100,000 per accident.