The state of North Carolina requires that all individuals have liability coverage on any motor vehicle registered in the state. The minimum requirements of liability insurance are $30,000 for bodily injury for one person, $60,000 bodily injury for all parties, and $25,000 proper damage. This is commonly expressed in the format 30/60/25.

In the state of North Carolina your personal automotive policy will cover you, your family and any person using your motor vehicle with your permission for any accident which you become legally responsible. Liability coverage covers bodily injury and property damages. So for a motor vehicle accident in which the individual is found to be legally liable the policy will pay for bodily injury costs for other people and property damage occurring to other people's property up to the limits of the insurance policy.

Typically liability coverage is split into three monetary limits. The first amount is bodily injury, this is the maximum coverage your policy will pay for each person who is injured in an accident. The second amount is the bodily injury amount for all parties involved in the accident. This is the total amount that will be paid for all injured parties combined who are involved in the accident. The third amount is property damage which will cover any damage to other people's property as a result of the accident. So for example if an policy had limits of 100/300/50 then the policy would pay a maximum of $100,000 for one person injured, $300,000 total for all parties involved in an accident and $50,000 worth of damage to any property involved in the accident.

Examples of bodily injury damages include medical and funeral expenses, lost wages, disability, rehabilitation, pain and suffering, law suits and legal expenses. Examples of property damage expenses include repair costs to another persons vehicle or property.

The state of North Carolina also requires that liability insurance be continuously maintained on a motor vehicle or you my face the loss of your license plate, fees, and penalties.

North Carolina does not require collision, comprehensive, medical payments or uninsured/under insured motorist coverage although this coverage is recommended.