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.
Table of Contents
Cheapest Minimum Liability Car Insurance in North Carolina (September 2023)
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.
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Cheapest Full Coverage Car Insurance in North Carolina (September 2023)
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.
How to Compare Cheap NC Car Insurance Quotes Online
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.
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Cheapest Car Insurance in North Carolina by Age (September 2023)
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.
Cheapest for teens: State Farm
Cheapest for young adults: Erie
Cheapest for seniors: State Farm
Cheapest Car Insurance in North Carolina for Teens and Their Families (September 2023)
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.
On average, car insurance rates for male teens tend to be significantly more expensive than for female teens because of their higher accident frequency rate. This rate difference is not as notable when drivers reach their 20s and beyond. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
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.
Cheapest Car Insurance in North Carolina for Young Adults (September 2023)
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.
Cheapest Car Insurance in North Carolina for Seniors (September 2023)
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.
Cheapest Car Insurance for Higher Risk Drivers (September 2023)
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.
Cheapest after a ticket: State Farm ($732 per year)
Cheapest after an accident: State Farm ($669 per year)
Cheapest after a DUI: State Farm ($1,885 per year)
Cheapest for poor credit: North Carolina Farm Bureau ($705 per year)
Cheapest for sports cars: State Farm ($536 per year)
Cheapest Car Insurance in North Carolina After a Ticket
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.
Cheapest Car Insurance in North Carolina After an Accident
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.
Cheapest Car Insurance in North Carolina After a DUI
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.
Cheapest Car Insurance in North Carolina for Drivers With Poor Credit (September 2023)
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.
Cheapest Car Insurance in North Carolina for Sports Cars (September 2023)
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.
Cheapest Car Insurance in North Carolina for Military Drivers (September 2023)
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.

- $503 per year
Although State Farm doesn’t offer discounts for military members, there are many other ways to save. For instance, policyholders may get a discount if they install anti-lock brakes or an anti-theft system, pay in full or bundle policies. Drivers who take a driver’s education course can also save money.
GEICO may be an excellent choice for military-affiliated drivers because of the discounts it offers, including an Emergency Deployment Discount. If you are on active duty, a veteran or a member of the Reserves or National Guard, GEICO may give you up to 15% off your car insurance. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Cheapest Car Insurance in North Carolina by City
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.
Car Insurance in North Carolina: What You Need to Know
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.
North Carolina Car Insurance Requirements
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.
Bodily Injury Liability
North Carolina requires drivers to carry at least $30,000 in bodily injury liability per person and $60,000 in bodily injury liability per accident. Drivers who are responsible for a vehicular accident must pay for medical costs beyond these limits.
Property Damage Liability
If you’re at fault in an accident and have minimum coverage, you must pay for expenses beyond $25,000. Property damage helps pay for the cost of repairs to another car or property.
Uninsured/Underinsured Motorist Coverage
This covers any medical bills or property damages if you’re hit by a driver with no car insurance or a driver that doesn't have enough liability insurance. You also have coverage for hit-and-runs. In North Carolina, the limits are $30,000 in uninsured/underinsured motorist coverage per person, $60,000 in uninsured/underinsured motorist coverage per accident and $25,000 in uninsured/underinsured motorist property damage coverage per accident.
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.
Car Insurance Alternatives in North Carolina
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.
FAQs About Car Insurance in North Carolina
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.
Expert Advice on Finding Cheap Car Insurance in North Carolina
To help you find credible and accurate insight on car insurance in North Carolina, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.
- What are the key factors drivers in North Carolina should look for when searching for the best auto insurance coverage?
- What steps can drivers in North Carolina take to find affordable car insurance?
- How do regulations and rules in North Carolina impact insurance pricing and how consumers might shop for coverage?
About Mark Fitzpatrick

sources
- North Carolina Department of Insurance. "A Consumer's Guide To Surety Bonds from Your North Carolina Department of Insurance." Accessed December 11, 2022.
- North Carolina Department of Motor Vehicles. "Bonded Vehicle Titles." Accessed December 11, 2022.