Do you know what your auto liability coverage is? If you don’t, you better find out.
Starting in 2025, North Carolina will have the strictest minimum liability coverage requirements in the country.
What led to the changes?
The bill was introduced by Republican state senators Todd Johnson, David Craven and Danny Earl Britt and passed last year. The law change will allow victims of crashes to collect much more money from at-fault parties. Personal injury attorneys are aware and paved the way for the change.
“We understand this came from the trial lawyer’s association and some lobbying took place in the Senate,” said Jason Tyson, the head of communications for the state Department of Insurance.
Liability insurance kicks in if you are at fault for an accident; it helps pay damages to the other driver. Right now, North Carolina is in the middle of the pack in terms of coverage requirements.
What are the new requirements?
Let’s say you’re found at fault for an accident:
Currently, if you have the minimum liability requirements, your insurance would cover $25,000 for property damage and $60,000 for injuries.
However, next year, the minimum requirements will increase. Your insurance must cover $50,000 in property damage and $100,000 for all the injuries caused in the accident.
How much more will this cost you?
More coverage means more cost to the consumer.
WRAL 5 On Your Side teamed up with independent insurance agent Turner Walston to crunch the numbers.
Under the current rules, liability insurance coverage for a female adult with a Volkswagen Tiguan would cost $485.34 a year. Under the new rates, it would go up by about $50 to $531.24.
A spokesperson working on behalf of the insurance industry told WRAL 5 On Your Side the cost of coverage would only go up by about 5%, at most.
Are the hikes good for drivers?
With the rising cost of new cars and more expensive repair bills thanks to cars with more sophisticated technology, some insurance agents say this is a good thing because victims in accidents will get more financial protection.
Overall, North Carolina prices remain on the lower end for full coverage insurance, which includes liability coverage.
Do drivers need to do anything?
No, your insurance should automatically adjust starting next year.
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May 23, 2024 at 05:36AM
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NC will soon have the most expensive basic auto insurance requirements in the US - WRAL News
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