How Much Is Car Insurance in North Carolina? (2023)

The insurance provider, age, credit score, level of coverage and driving history are just some of the factors that affect how much an insurance policy will cost.

For instance, Erie offers the most affordable full coverage auto insurance, costing an average of $630 annually. However, the same insurance plan costs differently for different ages: $514 per year for seniors and $644 per year for young adults.

The average full coverage car insurance cost in North Carolina is $873 per year. However, this figure is variable since the actual price varies based on factors like the policyholder's age, required coverage, driving history and more.

Here are different auto insurance premiums for North Carolina drivers based on their driving records:

• Clean record: $873 per year
• At-fault accident: $1,250 per year
• Speeding ticket: $1,326 per year
• DUI: $3,344 per year

Keep in mind that these rates pertain to full coverage plans. Expect significantly lower rates for minimum coverage policies.

Car insurance premiums in North Carolina are relatively lower than in most states. Compared to the national average ($1,054 annually), North Carolina’s average full coverage policy is $873 a year. These lower premiums could be due to fewer theft occurrences, lower urban density and minimal traffic congestion. Personal factors like your driving record and age might be to blame if you're from North Carolina and paying more for car insurance.

Make sure to distinguish the average auto insurance policy in North Carolina from your actual rate because the premiums can vary widely depending on the company. Nationwide, for instance, offers the cheapest auto insurance policy in North Carolina, at $242 per year for minimum coverage ($631 per year for full coverage). Meanwhile, Allstate has the most expensive policies at $746 per year for minimum coverage ($1,341 per year for full coverage).

While minimum liability insurance is the cheapest option, you can still find relatively affordable full coverage policies with some research.

In North Carolina, annual auto insurance costs range from $430 for minimum coverage to $1,020 for full coverage with higher liability limits.

Your annual auto insurance premium might increase by hundreds of dollars if you add collision and comprehensive coverage. One option to lower the cost of full coverage insurance is to increase the deductible.

Minimum coverage car insurance in North Carolina is the cheapest policy option for drivers. The tradeoff is that it has the lowest liability limits and doesn't cover comprehensive and collision damage. The inclusion of uninsured/underinsured motorist coverage in North Carolina's required coverage is one reason why its minimum policy may be higher than that of other states.

The typical maximum insurance policy liability limits are 300/500/300. For those unfamiliar with the shorthand, if you have liability insurance with limits of 50/100/50, it means that your insurer will provide the following coverage:

• $50,000 in bodily injury liability insurance per person
• $100,000 in bodily injury liability insurance per accident
• $50,000 in property damage liability insurance per accident

After a covered accident, liability insurance will cover compensating the victims and repairing their property. Meanwhile, comprehensive and collision insurance will cover repairing the policyholder’s vehicle. A full coverage policy includes all these benefits.

Your insurance rates could be much higher than average if you are a young or inexperienced driver. As seen below, insurance premiums in North Carolina tend to rise and fall over the years:

• 22–29: $941 per year
• 30–59: $873 per year
• 60+: $863 per year

Auto insurance for new drivers peaks between the ages of 16 and 24, then levels off for those aged 30 to 59 and then declines again for those aged 60 and over. Furthermore, new drivers over 30 may have the same auto insurance premiums as those in their 20s.

In North Carolina, the average cost of car insurance for teens is significantly higher than for drivers in other age groups. A 16-year-old male driver's average annual family premium for auto insurance is $2,598. Premiums are much higher if teens get an individual policy at an average yearly cost of $3,244.

Drivers often become eligible for lower insurance rates as they get older and get more driving experience. A 19-year-old typically spends $1,327 per year for auto insurance under a family policy, while a 22-year-old will pay $1,166 for similar coverage.

In most states, there will be a significant price difference between 16-year-old males and females, with the former paying more. However, teenage boys in North Carolina likely pay less than they would in other states because North Carolina prohibits gender-based rates.

Teens in North Carolina can find inexpensive auto insurance by looking at and comparing rates from different companies.

In North Carolina, the yearly premium to insure a new car is $1,304, around 29% more expensive than the $925 average rate for older cars. Due to their higher actual cash value (ACV), repair expenses and theft concerns, newer cars often have higher insurance premiums.

A car's ACV determines how much insurers pay for damages after a covered incident. The lower the ACV of your vehicle, the less your insurer will have to pay out in claims. Drivers of newer vehicles should consider purchasing full coverage insurance to protect their cars and receive third-party liability coverage.

Auto insurance premiums are higher for drivers with traffic violations on their record than for those without. The list below shows what different types of drivers in North Carolina can expect to pay for full coverage auto insurance based on their records:

• Clean record: $873 per year
• At-fault accident: $1,250 per year
• Speeding ticket: $1,326 per year
• DUI: $3,344 per year

As a general rule, the increase in auto insurance premiums correlates with the seriousness of the offense. A DUI, for instance, will increase your insurance rates more than a speeding citation. If you have a bad driving record in North Carolina and are looking for affordable auto insurance, you should do some comparison shopping.

Your credit score heavily influences the price you pay for auto insurance. In North Carolina, drivers with bad credit pay an average of $1,437 annually, while those with good credit pay only $834. Below we show North Carolina drivers' average auto insurance rates based on their credit scores:

• Excellent: $834 per year
• Good: $931 per year
• Fair: $1,062 per year
• Below fair: $1,215 per year
• Poor: $1,437 per year

Shopping around and comparing how various insurers handle North Carolina drivers with poor credit is an excellent way to get more affordable auto insurance.

When shopping around for car insurance in North Carolina, it’s important to remember that costs will vary significantly from one city to the next. Drivers in High Point will pay $807 per year for full coverage, while those in Fayetteville would pay an average of $1,103 annually. Car insurance costs in an area tend to increase with traffic volume and population density.

Your auto insurance premium could change based on several factors, including your driving record and the state in which you live. Here, we've addressed some of the most frequently asked concerns concerning the cost of auto coverage in the Tar Heel State.