Cheapest Car Insurance in North Carolina (June 2024)

North Carolina Farm Bureau offers the most affordable minimum car insurance policy. On the other hand, State Farm is the cheapest full coverage policy provider in North Carolina. Progressive is the most affordable insurer for certain driver types.

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:

• North Carolina Farm Bureau: $265 per year
• State Farm: $266 per year

MoneyGeek found that Allstate has the most expensive minimum coverage premium at $881 per year, based on the companies for which we collected quotes in North Carolina.

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

Minimum coverage policies only cover damages or injuries you cause to others. Damage to your vehicle isn’t covered. You can get more robust protection with optional 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:

• State Farm: $517 per year
• North Carolina Farm Bureau: $531 per year

Allstate offers the most expensive full coverage policy in North Carolina, costing roughly $1,933 per year.

Generally, selecting full coverage is the pricier option. Compared with State Farm's minimum coverage at $266 per year, the company's full coverage policy is $251 more expensive.

Full coverage offers more financial protection, especially in situations where drivers hit another vehicle or encounter an off-road incident like theft or a falling tree. Vandalism, fire 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 in bodily injury per person
• $300,000 in bodily injury per accident
• $100,000 in property damage per accident

If you’re looking for a lower policy cost, you can reduce liability limits, remove comprehensive and collision coverage or increase your deductible. However, you may have insufficient coverage if you are in an accident and could be financially vulnerable to a significant loss.

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 longer since you must 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.

Age is one of the biggest factors affecting car insurance rates in North Carolina. MoneyGeek found that State Farm and Progressive offer the cheapest options, depending on what age group you and your family belong to.

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

• 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. State Farm is North Carolina's cheapest insurer for 19-year-old males ($1,048 per year).

Adding a teen to a family policy is typically more affordable than purchasing a separate one. Plus, teens under 18 cannot legally buy auto insurance without a parent or guardian as a co-signer.

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 parent adds them to an existing policy, rates may only be around $2,581 annually. That’s a difference of $538.

Families with young drivers can 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:

• Progressive: $612 per year
• Erie: $646 per year

Allstate is the priciest carrier in the state, with policies costing approximately $2,150 per year.

Younger drivers tend to pay higher auto insurance rates than middle-aged drivers. In North Carolina, young drivers pay around $68 more for the cheapest coverage than 40-year-old drivers.

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

• State Farm: $508 per year
• North Carolina Farm Bureau: $529 per year

Kemper provides the most expensive rate at $1,868 per year for a 65-year-old.

Senior drivers in the Tar Heel State pay $12 less than their middle-aged counterparts. However, rates are usually more expensive for drivers 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. It’s good practice to compare your options to select the cheapest insurer for you.

State Farm offers the most affordable rates for drivers with tickets, at-fault accidents and sports cars. North Carolina Farm Bureau is the cheapest provider for those with a DWI on their record. Progressive is the most affordable provider for drivers with poor credit.

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

• State Farm: $753 per year
• North Carolina Farm Bureau: $756 per year

With an annual premium of $2,850, Allstate is the most expensive provider. Auto insurance in North Carolina can cost around $590 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: $688 per year
• North Carolina Farm Bureau: $696 per year

GEICO has the priciest rate, costing approximately $2,866 per year for the same driver profile.

On average, auto insurance can cost $507 more after a driver has an at-fault accident in the state. They will also pay an accident surcharge for a minimum of three years.

MoneyGeek found the cheapest average rates for drivers with a DWI conviction in North Carolina from the following providers:

• North Carolina Farm Bureau: $1,900 per year
• State Farm: $1,937 per year

Allstate has the priciest premium in the state at approximately $8,053 for those with a DWI on their record.

In states that give DUIs, car insurance usually increases after a driver gets one. The same is true for North Carolinians with a driving while intoxicated (DWI) violation. On average, the premium can skyrocket as much as $3,138 per year if a driver has a DWI, and it stays on their driving record permanently.

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

• Progressive: $612 per year
• North Carolina Farm Bureau: $705 per year

Allstate charges those with poor credit roughly $3,334 per year, making it the most expensive option in the state. Drivers with poor credit scores (below 580) tend to pay $549 more than people with good credit (750 and above).

Insurance providers tend to charge higher rates for drivers with poor credit or a poor credit-based insurance score 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: $551 per year
• Progressive: $646 per year

With Allstate, the most expensive provider, sports car drivers pay around $2,106 per year. Auto insurance can be more expensive for drivers with a sports car since these vehicles have increased repair and replacement cost.

Insuring a Toyota Camry LE is $248 cheaper than insuring a sports car in North Carolina.

MoneyGeek 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 State Farm offers the cheapest average auto insurance rate in North Carolina, costing $517 per year.

USAA is another stellar option for those with a military background. Its services are available in all states.

Car insurance rates can vary widely depending on the city where you live and even by ZIP code. 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, with State Farm offering the cheapest policy at an average of $456 per year. Meanwhile, Charlotte drivers may pay more for auto insurance, having the most expensive premiums at an average annual rate of $645 from North Carolina Farm Bureau.

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

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

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

MoneyGeek encourages readers to get as much liability coverage as possible for extra financial 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 coverage. Comprehensive coverage protects you against costs due to off-road events like vandalism, weather hazards, fires, animal damage and more. Collision coverage helps pay for damage to your vehicle in the event of a collision.

On a financed or leased vehicle, you will need full coverage insurance. But even if you don’t need it, those with valuable cars or anyone who wants more financial protection is encouraged to add comprehensive and collision coverage.

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 Division of Motor Vehicles lets drivers who can’t prove 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.