North Carolina car insurance costs about $1,264 yearly for full coverage and $604 for minimum coverage, based on a 40-year-old driver with good credit and no infractions. The state places 17th for full coverage and 25th for minimum coverage among all jurisdictions, with premiums 13% and 12% below national averages respectively.
Average Cost of Car Insurance in North Carolina
Updated: October 27, 2025
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Key Takeaways
North Carolina car insurance costs range from $516 to $4,824 per year depending on your chosen coverage, driving profile and location.
North Carolina is more towards the affordable side for car insurance in the country ranking 25th and 17th overall for minimum and full coverage affordability respectively.
Find the cheapest car insurance in North Carolina by deciding on coverage beforehand, researching costs and companies, and comparing multiple quotes.
Average Car Insurance Cost In North Carolina
| Full Coverage | $105 | $1,264 |
| Minimum Coverage | $50 | $604 |
The upgrade from basic to comprehensive coverage adds $660 annually, or approximately $55 per month. Individual rates depend on personal factors, driving background and coverage decisions.
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Average North Carolina Car Insurance Cost by Category
Older car owners benefit from excellent rates in North Carolina at $91 monthly for full coverage, taking advantage of both competitive markets and depreciated vehicle economics. Your driving profile impacts North Carolina car insurance costs.
Adult drivers enjoy affordable baseline rates at $105 monthly for full coverage and $50 for minimum coverage, reflecting the state's regulated insurance environment. Young drivers pay elevated costs at $190 monthly for full coverage, while credit-impaired drivers pay significant premiums at $276 monthly.
| Young Drivers | $98 | $190 |
| Adult Drivers | $50 | $105 |
| Senior Drivers | $58 | $117 |
| Drivers With An Accident | $71 | $148 |
| Drivers With A DUI | $189 | $402 |
| Drivers With A Speeding Ticket | $73 | $152 |
| Drivers With Bad Credit | $127 | $276 |
| Drivers With Low Income | $82 | $177 |
| Drivers With Newer Cars | $66 | $139 |
| Drivers With Old Cars | $43 | $91 |
North Carolina's insurance regulations help moderate costs while allowing meaningful rate differences based on driver characteristics and credit factors.
FIND THE BEST CHEAP PROVIDER FOR YOUR PROFILE
Check out our comprehensive roundup guides to identify the best cheap provider for your profile.
Average North Carolina Car Insurance Cost by Company
State Farm delivers exceptional value in North Carolina at $56 monthly for full coverage, while National General operates at higher price points with $102 monthly. North Carolina shows dramatic price variations between insurance carriers, with full coverage premiums ranging from $56 to $102 monthly across major companies.
North Carolina drivers can save approximately $547 annually by choosing the right insurer.
| State Farm | $24 | $56 |
| Progressive | $35 | $61 |
| Geico | $43 | $86 |
| Nationwide | $42 | $101 |
| National General | $46 | $102 |
Average North Carolina Car Insurance Cost by City
Location creates meaningful car insurance cost differences in North Carolina, with full coverage premiums varying from $88 monthly in Carrboro to $175 in Fort Bragg. Geographic factors impact North Carolina car insurance rates across different regions.
The $87 monthly difference between the cheapest and most expensive cities shows how local factors influence pricing even in regulated insurance environments. Compare rates for your city in the table.
Data filtered by:
Alachua
*Rates are for a 40-year-old driver with good credit and no driving violations who is insuring a 2012 Toyota Camry LE. Minimum coverage represents the minimum required liability coverage in the state while full coverage is representative of a 100/300/100 liability policy with a $1,000 deductible for comprehensive and collision coverage.
Is North Carolina Car Insurance Expensive?
North Carolina ranks 25th for minimum coverage and 17th for full coverage affordability, making it more affordable than many states. This reflects statewide averages, and affordability rankings for your city may differ from the rest of the United States.
Why Is Car Insurance More Expensive in North Carolina?
Here are the reasons for North Carolina's high car insurance rates:
Mandatory Uninsured Motorist Coverage
Unlike many states, North Carolina requires uninsured/underinsured motorist coverage with minimum limits of $30,000 per person and $60,000 per accident for bodily injury, plus $25,000 for property damage. This additional required coverage provides protection against uninsured drivers but adds to the overall cost of minimum coverage policies.
Below-National-Average Insurance Costs
Despite various risk factors, North Carolina maintains below-average insurance costs, with full coverage averaging $1,827 and minimum coverage costing $536 annually. These rates fall below national averages of $2,273 for full coverage and $621 for minimum coverage, making North Carolina relatively affordable for auto insurance.
Strict Insurance Compliance Requirements
North Carolina has strict penalties for insurance lapses, with fines of $50 for first offense, $100 for second and $150 for subsequent lapses, plus a $50 restoration fee. The state requires continuous coverage and revokes license plates within 10 days of receiving a liability insurance termination notice, making compliance important for legal driving.
Hurricane-Prone Coastal Environment
North Carolina experiences major storms making direct landfall roughly every other year, with recent devastating examples including Hurricane Helene in 2024. The state's coastal location exposes it to hurricane damage, flooding and severe weather events that can damage cars and increase comprehensive insurance claims, particularly in the 20 coastal counties.
Severe Weather and Flooding Risks
The state faces weather-related risks from hurricanes, flooding and severe storms. Very few residents hold flood insurance, with fewer than 1% of Asheville residents having flood coverage despite recent catastrophic flooding. This creates substantial uninsured losses and shows the gap between weather risks and insurance coverage.
Extended Inexperienced Driver Surcharges
Starting July 2025, North Carolina extended the inexperienced driver surcharge period from three to eight years for newly licensed drivers. This means families with teen drivers pay higher insurance costs for nearly twice as long as before, impacting long-term insurance expenses for young drivers.
At-Fault State with Contributory Negligence
North Carolina is an at-fault state, meaning the driver who causes an accident is responsible for damages. The state follows a harsh pure contributory negligence rule where if you're found even 1% at fault for an accident, you can't recover any compensation from the other party. This rule exists in only five U.S. jurisdictions and impacts settlement negotiations and insurance claims.
Increasing Minimum Coverage Requirements
Effective July 2025, North Carolina raised minimum liability limits from 30/60/25 to 50/100/50, with property damage coverage increasing from $25,000 to $50,000. This change increases premiums for the estimated 35% of drivers who carry minimum coverage, with rates expected to rise by about $44 annually for policies with higher limits.
How To Lower Car Insurance Costs In North Carolina
Want to save even more on those reasonable premiums? Here's how to lower your car insurance costs:
- 1Decide on coverage needs beforehand
Deciding on your coverage needs helps you avoid getting oversold on too much coverage. Consider your financial situation, driving habits, car details and risk tolerance when making this decision.
- 2Research costs and discounts
Know the average costs for your preferred coverage level to save money for your profile. Research car insurance discounts you may qualify for and look into the best home and auto insurance bundles for the most balanced perspective.
- 3Look into company reputations and coverage options
Cost isn't everything. Consider add-on coverage options and customer experiences with different providers to help narrow down which companies you'd like to compare quotes from. Use resources like industry studies, review forums and public forums like Reddit.
- 4Compare quotes through multiple means
Compare quotes from multiple companies to find the best deal possible. Use different methods of getting quotes, such as comparison sites and independent agents, since pricing varies widely by method.
Cost of Car Insurance in North Carolina: Bottom Line
North Carolina car insurance costs fall in the middle range compared to other U.S. states, so take advantage of savings strategies. Decide on your coverage needs beforehand, do thorough research and compare quotes from the right insurers.
Cost of Car Insurance in North Carolina: FAQ
We answer common questions about North Carolina car insurance costs:
How much is North Carolina car insurance per month?
North Carolina car insurance costs $50 per month for minimum coverage and $105 for full coverage policies. Rates can range anywhere from $43 to $402 monthly depending on your unique driver profile and coverage choice.
What factors affect North Carolina car insurance costs?
Primary factors include driving history, age and location. Drivers with accidents, violations or those who are young face higher rates, while urban areas cost more than rural ones. Car type, coverage amounts, credit score and annual mileage also impact premiums, along with factors like gender and marital status in some states.
Why is North Carolina car insurance affordable?
North Carolina follows harsh contributory negligence laws where even 1% fault prevents damage recovery. The state increased minimum coverage from 30/60/25 to 50/100/50 in July 2025 and extended inexperienced driver surcharges from three to eight years. North Carolina faces hurricane risks and maintains below-average costs at $1,827 annually for full coverage despite requiring mandatory uninsured motorist coverage.
How expensive is North Carolina car insurance?
Auto insurance costs in North Carolina fall into the moderate range nationally, with the state placing 25th for minimum coverage and 17th for full coverage affordability, putting it squarely in the middle tier of U.S. states.
How We Determined North Carolina Car Insurance Costs
North Carolina drivers deal with unique insurance factors: mandatory uninsured motorist coverage, harsh contributory negligence rules that bar recovery if you're even 1% at fault, and new 2025 regulations that raised minimum limits and extended young driver surcharges to eight years. We analyzed rates across all North Carolina ZIP codes to show how these state-specific rules affect what you actually pay.
Our driver profile: We analyzed rates for a 40-year-old with a clean driving record, good credit and a 2012 Toyota Camry LE. We modified this profile across different ages, violations and coverage levels to show how rates change for various North Carolina drivers.
Why these choices matter: The 40-year-old profile represents mature drivers who benefit from North Carolina's relatively affordable baseline rates ($105 monthly for full coverage). The Camry is North Carolina's most common vehicle, a practical, mid-value sedan that balances insurance costs with reliability. Good credit matters significantly in North Carolina since insurers use credit-based pricing heavily, with poor credit doubling or tripling premiums in this state.
Clean record baseline: Starting with a violation-free driver shows standard North Carolina pricing under the state's regulated environment. Violations spike rates dramatically here, and DUIs increase premiums to $402 monthly (nearly 4x baseline), while even speeding tickets add 45% to your costs. North Carolina's contributory negligence rule means at-fault accidents affect rates more severely than in comparative negligence states, since insurers can't subrogate any costs from the other party.
Coverage definitions: Minimum coverage includes North Carolina's required liability limits plus mandatory uninsured/underinsured motorist coverage ($30,000 per person, $60,000 per accident for bodily injury, $25,000 property damage). Note that as of July 2025, the state raised minimum liability from 30/60/25 to 50/100/50, increasing minimum coverage costs by about $44 annually for the 35% of drivers who carry state minimums.
Full coverage includes 100/300/100 liability ($100,000 bodily injury per person, $300,000 per accident, $100,000 property damage) plus comprehensive and collision with $1,000 deductibles. This deductible balances affordable premiums with manageable out-of-pocket costs. The $55 monthly difference between minimum and full coverage ($660 annually) buys substantial additional protection against North Carolina's hurricane risks, flooding and weather damage.
Geographic variations: Rates vary from $88 monthly in Carrboro to $175 in Fort Bragg, an $87 monthly difference reflecting urban density, theft rates and proximity to military bases. Coastal counties pay more because of hurricane exposure, while mountain areas like Asheville face flooding risks (fewer than 1% have flood insurance despite catastrophic 2024 flooding from Hurricane Helene).
Young driver impact: Starting July 2025, North Carolina extended inexperienced driver surcharges from three to eight years, meaning families with teen drivers now pay elevated rates for nearly twice as long. Young drivers (under 25) pay $190 monthly for full coverage compared to adults' $105, and this premium persists through age 25 under the new rules.
These rates come from analyzing quote data across all North Carolina ZIP codes and major insurance providers. Your actual rate depends on your specific location, driving record, credit score and chosen coverage levels.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Grist . "Hurricane Helene flood damage cost insurance ." Accessed November 17, 2025.
- Insurify . "North Carolina Hurricane Insurance ." Accessed November 17, 2025.
