Cheap North Carolina Low-Income Car Insurance for Families and Individuals

There is no government assistance program for low-income drivers in North Carolina. MoneyGeek determined the cheapest car insurance providers in the state to help you find the most affordable policy that meets your needs. Based on our findings, Nationwide has the cheapest coverage for low-income individuals and families.

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Last Updated: 4/19/2022
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In most states, including North Carolina, insurers do not use your income level to determine your car insurance rates. The factors that influence your costs the most besides your driving record are your age and adding a teen driver to your policy. MoneyGeek researched the cost of car insurance for low-income families and individuals across various credit scores.

Is There Car Insurance for Low-Income Families and Individuals in North Carolina?

North Carolina does not have government programs that help cover car insurance costs for low-income families and individuals. Car insurance is a requirement in the state, although 7.4% of the drivers remain uninsured and may be unable to afford to pay for it.

If you’re looking to purchase car insurance in North Carolina, the cheapest option is minimum coverage. For those who drive less frequently, pay-per-mile insurance can also be a good choice.

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Does North Carolina Have a Government Program to Support Low-Income Drivers with Insurance?

There is no government assistance program for low-income drivers in North Carolina. Individuals and families looking for affordable car insurance can find the right policy by comparing quotes from multiple car insurance carriers.

If you are looking to save money on car insurance, you can use MoneyGeek’s breakdown of the cheapest car insurance for low-income families and individuals in North Carolina to see the best options.

The Cheapest North Carolina Car Insurance Companies for Low-Income Drivers

When calculating car insurance costs, insurance companies do not consider your income level as a factor. Instead, they consider your credit score, coverage level selection and your age.

MoneyGeek analyzed the cheapest car insurance for low-income individuals and families in North Carolina across these factors. Based on the findings, the most affordable car insurance in North Carolina is the state-mandated minimum coverage, although it provides the least protection during an accident. Moreover, the cheapest car insurance company in the state for low-income drivers is Nationwide.

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The Cheapest North Carolina Car Insurance Companies for Low-Income Families

Car insurance costs do not change based on your income. However, your credit score can impact the cost of your insurance significantly. For instance, a single parent with one teen driver and a poor credit score can expect to pay $343 more than their counterpart with good credit. For couples with one teen driver, rates vary by $479 per year, depending on the credit score.

From our findings, the most affordable insurers for couples with a teen driver and poor credit score are:

  • State Farm: $1,634 per year
  • Nationwide: $1,636 per year

For low-income single parents with a teen driver and poor credit score, the cheapest car insurance carriers in North Carolina are:

  • Nationwide: $1,099 per year
  • State Farm: $1,306 per year

Note that having a low income does not automatically mean you have a poor credit score. Use the table below to find the most affordable coverage for your profile.

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Single parent w/ a kid

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Good Credit Score

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  • Company
    Annual Rates
  • Nationwide
    $864
  • State Farm
    $1,027
  • Erie
    $1,100
  • North Carolina Farm Bureau
    $1,120
  • GEICO
    $1,286
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The Cheapest North Carolina Car Insurance Companies for Low-Income Individuals

For MoneyGeek's sample 40-year-old-driver, car insurance rates vary by $122 per year if you had a good credit score versus a poor rating.

The cheapest low-income car insurance in North Carolina for individual drivers with poor credit scores are from:

  • Nationwide: $394 per year
  • State Farm: $468 per year

Although you may have a low income, that does not mean that your credit score has to be poor. For individual drivers with good credit, Nationwide and State Farm policies cost on average $310 and $368 per year, respectively.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • Nationwide
    $310
  • State Farm
    $368
  • Erie
    $394
  • North Carolina Farm Bureau
    $401
  • GEICO
    $440

The Cheapest North Carolina Car Insurance Companies for Low-Income Students

Due to inexperience, young student drivers tend to pay more for car insurance than middle-aged drivers. By default, most students are low-income. But insurers don’t charge them higher premiums because of their low income. It’s their inexperience on the road that does that.

The two cheapest insurance providers in North Carolina for young student drivers with poor credit scores are:

  • Nationwide: $527 per year
  • State Farm: $627 per year

Student drivers can have a good credit score despite having a low income. On average, you will pay $414 per year for a Nationwide car insurance policy if you are a young driver with good credit and $492 for a policy from State Farm.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • Nationwide
    $414
  • State Farm
    $492
  • Erie
    $528
  • North Carolina Farm Bureau
    $537
  • GEICO
    $589

The Cheapest North Carolina Car Insurance Companies for Low-Income Seniors

Insurance companies charge senior drivers slightly higher rates than middle-aged drivers in North Carolina. The rates increase for seniors with poor credit scores. Based on the quotes we collected using a sample 70-year-old driver, car insurance rates in the state vary by $125 per year between senior drivers with poor credit scores and those with good ones.

The lowest-priced car insurance for low-income seniors with poor credit scores in North Carolina is from:

  • Nationwide: $394 per year
  • State Farm: $495 per year

While you may have a low income, that doesn’t necessarily translate to a poor credit score. Seniors with good credit can save a significant amount on their premiums. For instance, Nationwide charges an average of $310 per year and State Farm $389 for seniors with good credit scores.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • Nationwide
    $310
  • State Farm
    $389
  • North Carolina Farm Bureau
    $406
  • Erie
    $433
  • Allstate
    $455

Does Income Affect Car Insurance Rates in North Carolina?

Insurers do not use your income as a factor when determining car insurance rates, but other factors related to income come into play. Young drivers, for example, pay higher rates since they are more prone to accidents. They happen to be low-income because they’re still in school or are just starting their careers. Low-income earners are also more likely to file claims since they may not be able to afford the cost of repairs. Insurers tend to consider a driver’s claims history when determining premiums.

MoneyGeek analyzed factors that might relate to low income and how they affect auto insurance rates in North Carolina, such as:

  • Your driving record.
  • Adding a teen driver to your family policy.
  • Your coverage levels.

Other factors like your car model and credit also impact car insurance rates for low-income individuals and families in North Carolina.

  • Factor
    How it Affects Your Rates
  • Driving Record

    Your driving history has the highest impact on the cost of your car insurance in North Carolina, increasing how much you pay up to 4x more than the default cost.

  • Adding a Teen Driver

    Adding a teen driver to your policy in North Carolina can make your premiums 3.2x as expensive.

  • Coverage Levels

    The amount of coverage you purchase in North Carolina impacts your rates, making them up to twice as expensive as minimum coverage.

  • Car Model

    Your insurance costs may be twice expensive depending on your car model.

  • Credit Score

    If you have a poor credit score, you are likely to pay 1.4x more than a driver with a good score.

Frequently Asked Questions About Low-Income Car Insurance in North Carolina

MoneyGeek responds below to some commonly asked questions about car insurance for low-income families in North Carolina.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in North Carolina using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple each 40 years old or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in North Carolina.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.