Starting July 1, 2025, new state laws will significantly change how automobile insurance premiums are calculated in North Carolina. Whether you’re a longtime driver or just got your license, these changes could impact how much you pay. Here’s what South Durham drivers should know:
🔺 Higher Minimum Coverage Requirements
Current law requires:
- $30,000 per person / $60,000 per accident for bodily injury
- $25,000 for property damage
Starting July 1:
- Coverage increases to $50,000 per person / $100,000 per accident for bodily injury
- $50,000 for property damage
➡️ What this means: If your current policy has the minimum coverage, your premium will likely go up when it renews.
🚘 Underinsured Motorist Coverage Now Required
Until now, minimum-limit policies didn’t include underinsured motorist coverage (UIM). As of July 1, UIM will be mandatory for all new and renewed policies.
Changes also include:
- Whether a vehicle is “underinsured” now depends on total damages, not just other drivers’ insurance.
- Your UIM benefits will not be reduced by most other payments (except workers’ comp).
- If you’re covered by multiple policies, you can combine their UIM limits for a larger benefit.
➡️ Why it matters: These changes could mean better protection after an accident – and potentially higher premiums.
🧑🎓 Inexperienced Driver Surcharge: Now Lasts 8 Years
Right now, new drivers face premium surcharges for three years. Starting July 1:
- Drivers licensed on or after July 1, 2025, will face surcharges for eight years
- Surcharges drop each year, but still apply through year eight
➡️ Translation: New drivers will pay more, for longer. Parents of teen drivers, take note.
🚫 Surcharges for Major Violations Will Last Longer
If you get convicted of a serious traffic offense that results in 4 or more SDIP points (excluding most speeding tickets), your premium surcharge will now last 5 years – up from 3.
➡️ Examples of serious violations include:
- Reckless driving
- Hit and run
- Driving while impaired (DWI)
⚖️ Speeding & PJC Lookback Periods Get Longer
Currently, you can avoid an insurance premium increase from:
- Speeding 10 mph or less, or
- A Prayer for Judgment Continued (PJC)
… if you have a clean record for the past three years.
Starting July 1, the lookback period increases to five years for violations or PJCs occurring after that date.
➡️ What this means: Your past mistakes may impact your premium longer, even for relatively minor infractions.
📝 Bottom Line for South Durham Drivers
Whether you’re reviewing your renewal, adding a teen driver, or just trying to stay covered affordably, expect changes. These laws aim to modernize coverage and better reflect real costs, but they may mean higher premiums for many.
👉 What to do now:
- Contact your insurance agent to understand how the new rules will impact your specific policy
- Consider whether higher coverage or policy bundling makes sense for your family
- Be extra mindful of traffic laws – penalties are lasting longer than before
Spread the word by sharing this Southpoint Access newsletter with friends and neighbors. Got a tip for your neighborhood news guy? Send email to wes.platt@southpointaccess.news. Call 919-695-9813, ext. 800.
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