Big News in Auto Insurance Law

Senate Bill 452, which was passed in NC in October 2023, made several changes to insurance laws in North Carolina that were already in N.C.G.S. 20-279.1(11) and N.C.G.S. 20-309(a2). The biggest changes for people injured in car collisions pertain to the minimum coverage requirements for auto liability insurance. The increases take effect in January 2025.

Previously, the minimum limit of liability insurance you had to have in NC was $30,000 per person. The new law raises the minimum coverage limits to $50,000 per person and $100,000 per accident for bodily injury claims. It also raises the coverage requirements for property damage from $25,000 to $50,000 to repair or replace damaged vehicles and other property. This was a change that was a long time coming.

I can’t tell you how often I had clients whose cases could have been 6 figures but they were stuck with only getting $30,000. That’s immensely unfair and frustrating.

Of note, this new bill changes the law so that those who have Underinsured Motorist coverage can now collect the full face value of their underinsured motorist policy. An insurance company will no longer be able to reduce the amount of UIM coverage available by subtracting the liability payment. The victims who could previously only collect a total of $50,000 in benefits can now collect $100,000 if the numbers are right.

If you’ve been injured in an accident, call me at 919-929-2992.