The Cheapest Car Insurance in North Carolina (April 2023)

Nationwide provides the cheapest policies for minimum coverage and seniors. Erie offers the lowest rates for full coverage, military personnel and young adults. Meanwhile, State Farm is the cheapest insurer for drivers with speeding tickets and sports cars.

MoneyGeek analyzed the best auto insurance companies in North Carolina for drivers who value affordability and service.

On average, the cheapest auto insurance companies that offer a minimum coverage policy in North Carolina are:

• Nationwide: $295 per year
• Erie: $300 per year

MoneyGeek also found that Allstate offers the most expensive minimum coverage premiums at $607 per year.

North Carolina’s minimum coverage requirements only cover bodily injury liability, property damage liability and uninsured motorist coverages.

Minimum coverage policies only cover damages or injuries you cause others. Damage to your vehicle isn’t covered. You can get more robust protection with comprehensive and collision insurance, also known as a full coverage policy.

Auto insurance companies that provide the cheapest full coverage policies in North Carolina are, on average:

• Erie: $629 per year
• State Farm: $643 per year

Allstate offers the most expensive full coverage policies in North Carolina, costing roughly $1,286 annually.

Generally, selecting full coverage is the pricier option. Compared with Erie's minimum coverage at $300 per year, the company’s full coverage policy is $329 more expensive.

Full coverage offers more extensive financial protection, especially in situations in which drivers hit another vehicle or encounter an off-road incident like theft. Vandalism and flooding are also typically covered with a full coverage policy.

Your rates heavily depend on how much car insurance you need. MoneyGeek’s sample full coverage policy with liability protection includes:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident

If you’re looking for a lower liability limit, you can opt to remove comprehensive and collision coverage or increase your deductible. However, you may have insufficient coverage if you are in an accident.

You can usually get auto insurance rates online. However, some insurance providers require you to submit personal information, and applications for rates can take roughly 15 minutes to complete. Comparing premiums can take up more time since you need to provide information for each insurer's website.

Luckily, MoneyGeek has a car insurance calculator so that you don’t need to give out your personal information to different providers. Simply input your driving record, age and gender to quickly get a ballpark figure. The estimates from our calculator can then give you a starting point for finding the cheapest car insurance for your profile.

In North Carolina, the cheapest auto insurance providers for teens on a parent’s policy are, on average:

• State Farm: $1,200 per year for female and male teens
• Nationwide: $1,437 per year for female and male teens

GEICO offers the most expensive premiums for teens, costing $4,346 per year for both female and male teens. These quotes are for a 16-year-old on their parent’s auto insurance policy.

Teens generally enjoy a decreasing car insurance rate as they age. Nineteen-year-olds can expect to get the lowest rate anywhere. North Carolina's cheapest insurer for 19-year-old males is State Farm ($1,048 per year).

It’s typically more affordable to add a teen to a family policy than purchase a separate one. On average, a 16-year-old male North Carolina resident may spend $3,119 per year if they get their own policy. However, if their parents add them to an existing policy, rates are roughly $2,581 per year. That’s a difference of $538.

Families with young drivers might be able to secure a cheaper rate with discounts. While all our researched auto insurance companies in North Carolina offer good student discounts, State Farm, Progressive and Allstate may also slash rates for students who live away from home.

On average, auto insurers with the cheapest full coverage policies for North Carolinians in their 20s are:

• Erie: $644 per year
• GEICO: $811 per year

Allstate is the priciest carrier in the state, with policies that cost approximately $1,431 per year.

Younger drivers tend to pay higher rates for auto insurance compared with middle-aged drivers. In North Carolina, young drivers pay around $15 more for the cheapest coverage compared with 40-year-old drivers.

For North Carolinian senior drivers, the cheapest auto insurance companies are, on average:

• Nationwide: $602 per year
• Erie: $619 per year

Kemper provides the most expensive rates at $1,183 per year.

Senior drivers with Nationwide in the Tar Heel State also pay $136 less than their middle-aged counterparts with the same company. However, rates are usually more expensive for drivers who are in their 70s or 80s.

Some car insurance companies offer discounts for senior drivers. In North Carolina, this includes Allstate, GEICO, Kemper and National General. To select the cheapest insurer for you, it’s good practice to compare your options.

Auto insurance rates tend to be more expensive for those with driving violations. The cheapest options are State Farm for drivers with tickets and accidents and National General for drivers with DUI cases.

On average, those with a speeding ticket can find affordable premiums with the following auto insurance companies:

• State Farm: $946 per year
• Erie: $991 per year

With an annual premium of $1,897, Allstate is the most expensive provider.

Auto insurance in North Carolina can cost around $462 more for drivers with a ticket.

The following insurers offer the cheapest average quotes in North Carolina for drivers with an at-fault accident on their record:

• State Farm: $863 per year
• Erie: $909 per year

GEICO has the priciest rate, costing approximately $1,724 annually for the same driver profile.

On average, auto insurance can cost $385 more after a driver has an at-fault accident in the state.

MoneyGeek found the most affordable average rates for drivers with a DUI conviction:

• National General: $2,209 per year
• State Farm: $2,467 per year

Allstate has the priciest premiums in the state at approximately $5,363 for those with a DUI on their record.

On average, premiums can skyrocket as much as $2,517 per year if a driver has a DUI.

On average, the cheapest car insurance companies for North Carolina drivers with poor credit are:

• Erie: $855 per year
• Nationwide: $887 per year

Your credit score is an influential factor when carriers determine your premiums. Allstate charges those with poor credit roughly $2,219 per year, making it the most expensive option in the state.

Drivers with poor credit scores (below 580) tend to pay $416 more compared with people with good credit (750 and above).

Insurance providers tend to charge higher rates for drivers with poor credit since they have a higher chance of filing a claim. Although this isn’t legal in all states, it is in North Carolina.

A great way to get a cheaper rate is to improve your credit standing. Alternatively, you can compare rates or find insurers that offer commonly used discounts.

On average, the most affordable options for drivers with a sports car are:

• State Farm: $692 per year
• Nationwide: $816 per year

With Allstate, sports car drivers pay around $1,401 per year. Auto insurance can be more expensive for drivers with a sports car since these vehicles have increased repair and replacement costs.

Insuring a Toyota Camry LE is $151 cheaper than insuring a sports car in North Carolina.

We used a Ford Mustang as a sample car, but insurance rates will depend on the car model. Sports, electric and luxury cars are typically more expensive to insure than other model types. Otherwise, the car model might not majorly impact your rates.

Military personnel will find that Erie offers the cheapest average auto insurance rate, costing $629 per year.

USAA is another stellar option for those with a military background. It is available nationwide.

Car insurance rates can vary widely depending on the city where you live. North Carolina residents who live in riskier neighborhoods, such as those with higher crime rates, might pay increased premiums.

High Point has the most affordable full coverage rates. State Farm is the cheapest in this city, offering quotes that average $558 per year. Meanwhile, Fayetteville drivers may pay more for auto insurance since this city has the most expensive premiums at an annual rate of approximately $771 from Erie.

Below, we outline average auto insurance costs in the state by location.

North Carolina mandates that all drivers purchase car insurance according to the state’s minimum requirements. This includes bodily injury, property damage and uninsured motorist coverage. Knowing how much auto insurance you need can ensure you have adequate protection.

In North Carolina, you only have to purchase the minimum required insurance. This includes bodily injury liability, property damage liability and uninsured motorist coverage. Purchasing the state minimum coverage cuts costs. However, it will be more costly if you are in an accident.

MoneyGeek encourages readers to get as much liability coverage as possible for extra protection.

For more robust protection, MoneyGeek recommends increasing limits to $100,000 in bodily injury liability insurance per person, plus $300,000 in bodily injury liability insurance and $100,000 in property damage insurance per accident.

Full coverage provides greater protection since it comes with comprehensive and collision insurance. Comprehensive insurance protects you against costs due to off-road events like vandalism, animal damage and more. Collision insurance helps pay for damage to your vehicle in the event of a collision.

Even if you don’t need it, those with valuable cars are encouraged to purchase comprehensive and collision insurance.

There are other ways to adhere to North Carolina insurance laws. Consider a surety bond, cash bond or non-owner car insurance if it addresses your needs.

A surety bond guarantees that the driver will fulfill financial obligations in the event of an at-fault accident where they need to pay for liability costs.

The North Carolina Department of Motor Vehicles lets drivers who can’t prove that they own their car use an indemnity bond or cash bond.

Getting non-owner car insurance in North Carolina is also good for those who frequently rent or borrow vehicles. It’s also good for car-sharing drivers and includes the state’s minimum coverage.

Car insurance can be a complex topic so it’s normal to ask questions about its cost and quality. MoneyGeek answers commonly asked questions to help you understand auto insurance in the Tar Heel State.