The Cheapest Car Insurance in North Carolina (September 2023)

State Farm provides the cheapest policies overall in North Carolina. Erie and North Carolina Farm Bureau are the cheapest insurers 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:

• State Farm: $257 per year
• North Carolina Farm Bureau: $265 per year

MoneyGeek also found that Kemper offers the most expensive minimum coverage premium at $763 per year, based on the companies we collected quotes for 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 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: $503 per year
• North Carolina Farm Bureau: $531 per year

Kemper offers the most expensive full coverage policy in North Carolina, costing roughly 1,528 annually.

Generally, selecting full coverage is the pricier option. Compared with State Farm's minimum coverage at $257 per year, the company’s full coverage policy is $246 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 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 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 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 major 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 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.

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

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

Allstate is the priciest carrier in the state, with policies that cost approximately $1,499 per year.

Younger drivers tend to pay higher rates for auto insurance compared with middle-aged drivers. In North Carolina, young drivers pay around $143 more for the cheapest coverage compared with 40-year-old drivers.

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

• State Farm: $494 per year
• North Carolina Farm Bureau: $529 per year

Kemper provides the most expensive rate at $1,856 per year for a 65-year-old.

Senior drivers with State Farm in the Tar Heel State also pay $9 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 Erie for drivers with tickets and accidents and National General for drivers with a DWI — North Carolina does not have DUI.

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

• State Farm: $732 per year
• North Carolina Farm Bureau: $756 per year

With an annual premium of $2,760, Kemper is the most expensive provider.

Auto insurance in North Carolina can cost around $514 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: $669 per year
• North Carolina Farm Bureau: $696 per year

Kemper has the priciest rate, costing approximately $2,212 annually for the same driver profile.

On average, auto insurance can cost $422 more after a driver has an at-fault accident in the state, and they will pay an accident surcharge for a minimum of three years.

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

• State Farm: $1,885 per year
• North Carolina Farm Bureau: $1,900 per year

Kemper has the priciest premium in the state at approximately $6,524 for those with a DWI on their record.

In states that give DUIs, car insurance usually goes up 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 $2,720 per year if a driver has a DWI and it stays on their driving record permanently — it cannot be expunged.

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

• North Carolina Farm Bureau: $705 per year
• Erie: $857 per year

Your credit history is an influential factor when carriers determine your premium. Kemper charges those with poor credit roughly $2,524 per year, making it the most expensive option in the state.

Drivers with poor credit scores (below 580) tend to pay $447 more compared with 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: $536 per year
• Nationwide: $877 per year

With Kemper, sports car drivers pay around $1,750 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 $225 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 State Farm offers the cheapest average auto insurance rate, costing $503 per year.

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

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. State Farm is the cheapest in this city, offering quotes that average $443 per year. Meanwhile, Charlotte drivers may pay more for auto insurance since this city has the most expensive premiums at an annual rate of approximately $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 according to 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 you have 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 are in 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 that 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 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.