Cheapest Car Insurance in North Carolina (September 2024)

North Carolina Farm Bureau offers the most affordable minimum and full coverage car insurance policies. State Farm and Erie are the most affordable insurers for certain driver profiles.

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

The cheapest auto insurance companies that offer minimum coverage in North Carolina are:

• North Carolina Farm Bureau: $265 per year
• Erie: $300 per year

Kemper has the most expensive minimum coverage premium, at around $993 per year.

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

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

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

• North Carolina Farm Bureau: $531 per year
• Erie: $631 per year

Kemper has the highest average cost for full coverage insurance, at around $2,105 per year.

Full coverage is generally more expensive than minimum coverage. For instance, North Carolina Farm Bureau’s full coverage policy costs $266 more annually than its minimum coverage.

Full coverage provides greater financial protection, covering incidents like collisions with other vehicles, theft, vandalism, fire and flooding.

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.

Use MoneyGeek's car insurance calculator so that you don’t need to give your personal information to different providers. Input your driving record, age and gender to get an estimate quickly. The estimates from our calculator can then give you a starting point for finding the cheapest car insurance for your profile.

State Farm, Erie and North Carolina Farm Bureau offer the cheapest options for teens, young adults and seniors in North Carolina.

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

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

GEICO is the most expensive, with premiums reaching $4,346 per year for teens.

Rates for teens generally decrease as they age. State Farm offers the lowest rate for 19-year-old males, at $1,048 per year.

Adding a teen to a family policy is typically more cost-effective than purchasing an individual policy. Teens under 18 cannot legally buy auto insurance without a co-signer. For example, a 16-year-old male might pay about $3,119 per year for their own policy, while being added to a parent’s policy can reduce this cost to about $2,581 annually — a savings of $538.

Families with young drivers in North Carolina can reduce their premiums by taking advantage of discounts. Most insurers offer good student discounts. Additionally, State Farm, Progressive and Allstate may provide further reductions for students who live away from home.

Auto insurers with the cheapest full coverage policies for North Carolinians in their 20s are:

• Erie: $646 per year
• North Carolina Farm Bureau: $658 per year

Allstate is the priciest insurer, with policies averaging $2,150 per year.

Younger drivers tend to pay higher auto insurance rates than middle-aged drivers. In North Carolina, young drivers pay around $75 more for the cheapest coverage than 40-year-old drivers.

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

• North Carolina Farm Bureau: $529 per year
• Erie: $620 per year

Kemper provides the most expensive rate for a 65-year-old at around $2,558 annually.

Senior drivers in North Carolina pay $2 more than their middle-aged counterparts. However, rates are usually more expensive for drivers in their 70s or 80s.

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

North Carolina Farm Bureau offers the most affordable rates for drivers with tickets, at-fault accidents, DWIs and poor credit. State Farm is the cheapest option for sports car drivers.

North Carolina drivers with a speeding ticket can find affordable premiums with these auto insurance companies:

• North Carolina Farm Bureau: $756 per year
• Erie: $994 per year

Kemper is the most expensive provider, with an average annual premium of $3,798. Auto insurance in North Carolina can cost around $661 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:

• North Carolina Farm Bureau: $696 per year
• Erie: $911 per year

Kemper has the priciest rate after an at-fault accident, averaging $3,046 annually.

On average, auto insurance can cost $550 more for a driver with an at-fault accident in North Carolina. They also pay an accident surcharge for a minimum of three years.

The following providers offer the cheapest average rates for drivers in North Carolina with driving while intoxicated (DWI) on their record:

• North Carolina Farm Bureau: $1,900 per year
• Erie: $2,557 per year

Kemper has the priciest premium in North Carolina for those with a DWI, with an average annual premium of $8,975.

In North Carolina, a DWI can significantly increase car insurance rates, with premiums rising by as much as $3,467 annually. This violation remains permanently on a driver’s record, further impacting insurance costs.

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

• North Carolina Farm Bureau: $705 per year
• Progressive: $820 per year

Kemper charges those with poor credit $3,476 annually, making it the most expensive option. Drivers with poor credit scores (below 580) tend to pay $613 more than people with good credit (750 and above).

Insurance providers charge higher rates for drivers with poor credit or a poor credit-based insurance score since they're more likely to file 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 score. Alternatively, you can compare rates or find insurers that offer common discounts.

The most affordable options for drivers with a sports car are:

• State Farm: $762 per year
• Progressive: $867 per year

With Kemper, the most expensive provider, sports car drivers pay around $2,425 annually.

Insurance for sports cars is generally more expensive due to higher repair and replacement costs. In North Carolina, insuring a Toyota Camry LE is $323 cheaper than insuring a sports car.

MoneyGeek used a Ford Mustang as its sample sports car in this study, but costs may differ depending on your particular car model. Sports, electric and luxury cars are generally more expensive to insure; otherwise, the model may not be a significant factor. However, this may not be true for all states.

North Carolina Farm Bureau offers the cheapest auto insurance for military personnel in the state, with an average annual cost of $531.

USAA is also a strong choice for those with a military background. It offers similar rates and special benefits, with an average cost of $531 per year. USAA’s services are available nationwide and include additional coverage benefits and discounts for military members.

Car insurance rates in North Carolina can differ significantly based on your city and ZIP code, as insurers consider local risk factors like crime rates.

High Point has the most affordable full coverage car insurance, with North Carolina Farm Bureau providing the lowest average rate of $492 per year. Charlotte drivers face higher premiums, with the most expensive average annual rate of $645 from North Carolina Farm Bureau.

Below, you'll find a breakdown of average auto insurance costs by city in North Carolina.

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 you 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 who want more financial protection are 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 suitable for those who frequently rent or borrow vehicles. It’s also good for car-sharing drivers and includes the state’s minimum coverage.

Concerns about auto insurance cost and quality are common. We answered a few common questions to help you understand auto insurance in North Carolina.