Car Insurance Changes in North Carolina: What Drivers Need to Know for 2024
WILMINGTON, N.C. – Changes are coming to car insurance policies in North Carolina, starting January 1, 2024. Senate Bill 452 is set to increase minimum liability coverage, bringing adjustments to how much protection drivers are required to carry.
Increased Minimum Liability Coverage
The most significant update involves the baseline for liability insurance coverage. The minimum liability per person will rise from $30,000 to $50,000, while the minimum per accident coverage will increase from $60,000 to $100,000.
This shift is designed to offer better financial protection for drivers involved in accidents, aligning insurance coverage with the rising costs of car repairs and medical expenses.
Impact on Monthly Premiums
The good news? This increase won’t substantially affect monthly insurance premiums. Alan Murphy, an agent at Murphy Insurance, reassures drivers that they can expect a modest rise of just $3 to $4 per month.
“Financially, it’s not going to be that big of a problem,” Murphy explained. “If you get into an accident, you’ll be covered. You won’t have to worry about, ‘Will my insurance be able to pay for this? Will I still end up having to pay for something out of pocket?’ It’ll end up making things easier.”
The adjustment reflects the growing expenses associated with repairing vehicles, sourcing car parts, and other related costs. As Murphy noted, “It’s kind of something that was long overdue.”
A Major Change for New Drivers
While the liability coverage change seems manageable, a separate adjustment coming in mid-2025 could pose greater challenges for new drivers. Starting July 1, 2025, drivers who obtain their license will be classified as “inexperienced operators” for a longer period—up to eight years instead of the current three years.
This reclassification means higher insurance premiums for new drivers, potentially affecting their budgets for nearly a decade.
“This is going to be effective everywhere, and that’s going to cause a little bit of a mess,” Murphy stated.
Tips for New Drivers
Murphy suggests that inexperienced drivers aim to drive vehicles they can fully pay off. This approach can help them manage costs while building a longer driving history to eventually reduce their insurance rates.
Preparing for 2024 and Beyond
As these changes take effect, both new and experienced drivers are encouraged to review their policies and budget accordingly. While the liability coverage increase offers enhanced protection, the upcoming reclassification of new drivers may require additional financial planning.
For now, drivers can rest assured that the initial changes in January will be minimal in cost but significant in coverage, reflecting a more robust and modernized approach to car insurance in North Carolina.
