Cheapest Car Insurance for Low-Income Drivers in North Carolina (October 2024)


Updated: October 1, 2024

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For individual drivers with low-income and poor credit history, the cheapest car insurance in North Carolina is North Carolina Farm Bureau at $30 per month. For families with low-income, the most affordable provider is Nationwide at $41 per month.

North Carolina does not offer state-backed car insurance programs for low-income individuals or families. Finding the provider with the most affordable rate and exploring discounts are options to help manage the cost of car insurance.

While minimum coverage will help you drive legally, it has downsides. For example, in an at-fault accident, minimum coverage may not cover all damages, leaving you with out-of-pocket expenses.

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Cheapest for Individuals With Low Income

North Carolina Farm Bureau is the cheapest car insurance provider for individual drivers with low-income and poor credit history in North Carolina with an average minimum coverage premium of $30 per month or $356 per year.

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Cheapest for Families With Low Income

Nationwide is the cheapest car insurance provider for families with low-income in North Carolina with an average minimum coverage premium of $41 per month or $488 per year.

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Cheapest for Senior Drivers With Low Income

North Carolina Farm Bureau is the cheapest car insurance provider for seniors with low-income and poor credit score in North Carolina with an average minimum coverage premium of $29 per month or $351 per year.

Why Trust MoneyGeek? We analyzed thousands of data points and quotes from Quadrant Information Services and the North Carolina Department of Insurance to get the cheapest average costs for low-income drivers of North Carolina.

47,430Quotes Analyzed
 
9Companies Compared
 
94ZIP Codes

Does North Carolina Offer Low-Income Insurance?

Car insurance companies in North Carolina do not consider income when calculating your car insurance rates. Instead, they look at factors like age, driving record, credit history and type of car. At-fault accidents and moving violations will increase rates for drivers. Comparing quotes from several insurance companies is the best way to find the cheapest rates.

A basic minimum coverage policy is often the cheapest way to stay legal on the road if your budget is tight. For drivers who rarely drive, pay-per-mile insurance can be a great option to save money. MoneyGeek rounded up the cheapest insurers for low-income drivers in North Carolina to help you save.

Minimum Car Insurance Requirements in North Carolina

To legally drive in North Carolina, you're required to carry minimum coverage auto insurance, which includes the following liability limits:

  • $30,000 for bodily injury liability per person.
  • $60,000 for bodily injury liability per accident.
  • $25,000 for property damage liability per accident.
  • $30,000 uninsured motorist bodily injury per person.
  • $60,000 uninsured motorist bodily injury per accident.
  • $25,000 uninsured/Underinsured property damage coverage.

Liability-only car insurance helps cover expenses for the other driver if you're at fault in an accident, but it doesn't cover your own vehicle. To protect your car against damages like theft, vandalism, or natural disasters, you'll need a full coverage car insurance policy, which includes collision and comprehensive coverages.

Imagine you're living in an area prone to hurricanes and flooding, such as the coastal regions of North Carolina. Opting for full coverage ensures that your vehicle is protected against these natural disasters. Understanding the risks and benefits of different coverages is crucial to choose the right policy for your situation.

Cheapest Car Insurance for Individuals With Low Income in North Carolina

Credit history is crucial for low-income drivers as it can significantly affect car insurance premiums in North Carolina. A poor credit record can signal higher risk to insurers, leading to higher premiums. Therefore, maintaining a good insurance score is essential for affordable car insurance rates in the state. The cheapest car insurance companies for drivers with low-income and poor credit record in North Carolina are:

  • North Carolina Farm Bureau: $356 per year, $30 per month
  • Erie: $402 per year, $34 per month

Drivers with good insurance credit, you can get the cheapest car insurance in North Carolina from:

  • North Carolina Farm Bureau: $265 per year, $22 per month
  • Erie: $300 per year, $25 per month

Driving without insurance in North Carolina is considered a misdemeanor and can lead to suspension of your driver’s license, vehicle registration, fines ranging from $175 to $1,000 and other penalties.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
North Carolina Farm BureauAnnual Premium$356Monthly Premium$30
ErieAnnual Premium$402Monthly Premium$34
ProgressiveAnnual Premium$500Monthly Premium$42
National GeneralAnnual Premium$623Monthly Premium$52
NationwideAnnual Premium$624Monthly Premium$52
State FarmAnnual Premium$737Monthly Premium$61
GEICOAnnual Premium$1,321Monthly Premium$110
AllstateAnnual Premium$1,433Monthly Premium$119
KemperAnnual Premium$1,571Monthly Premium$131
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Cheapest Car Insurance for Families With Low Income in North Carolina

Car insurance premiums may not hinge on your income, but your family situation can certainly sway the cost. In North Carolina, single parents with a teen face an annual rate that's $291 higher on average compared to married couples with a teen, who benefit from a more wallet-friendly yearly rate that's $291 less on average.

The most affordable minimum coverage auto insurance for married couples with a teen in North Carolina comes from:

  • Nationwide: $488 per year; $41 per month
  • State Farm: $566 per year; $47 per month

For single parents with a teen, the cheapest options are:

  • Nationwide: $779 per year; $65 per month
  • State Farm: $941 per year; $78 per month

The gap in rates between married and single parents underscores the varying risk perceptions insurers have regarding different family structures. A stellar credit-based insurance score remains a key player in securing more affordable rates, emphasizing the importance of financial responsibility.

Data filtered by:Results filtered by:
Family Type:
Family Type:Married Couple with Teen
NationwideAnnual Premium$488Monthly Premium$41
State FarmAnnual Premium$566Monthly Premium$47
ProgressiveAnnual Premium$717Monthly Premium$60
KemperAnnual Premium$823Monthly Premium$69
AllstateAnnual Premium$1,174Monthly Premium$98
GEICOAnnual Premium$1,207Monthly Premium$101

Cheapest Car Insurance for Seniors With Low Income in North Carolina

Car insurance premiums generally decrease as drivers reach their early senior years, typically around age 55 to 65, especially if they maintain a clean driving record.

The two cheapest car insurance for senior drivers with low-income and poor credit history are:

  • North Carolina Farm Bureau: $351 per year; $29 per month
  • Erie: $395 per year; $33 per month

After age 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. North Carolina has specific guidelines for seniors obtaining car insurance, so it's important to stay informed.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
North Carolina Farm BureauAnnual Premium$351Monthly Premium$29
ErieAnnual Premium$395Monthly Premium$33
ProgressiveAnnual Premium$500Monthly Premium$42
NationwideAnnual Premium$592Monthly Premium$49
National GeneralAnnual Premium$629Monthly Premium$52
State FarmAnnual Premium$722Monthly Premium$60
AllstateAnnual Premium$1,237Monthly Premium$103
GEICOAnnual Premium$1,465Monthly Premium$122
KemperAnnual Premium$1,772Monthly Premium$148
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

What Factors Affect Car Insurance Rates in North Carolina?

Income doesn't directly affect car insurance rates in North Carolina. However, if low income leads to a poor credit-based insurance score, this can result in higher rates. Conversely, a good score can help you secure lower rates.

Understanding the factors that contribute to car insurance rates in North Carolina can help you make informed decisions about choosing the best policy for you.

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    Driving record

    At-fault accidents and moving violations can increase your car insurance rates. A clean record helps you get lower premiums.

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    Age and gender

    Young drivers and males typically pay higher rates due to statistically higher risk levels.

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    Credit history

    A poor credit history can lead to higher insurance rates as it indicates a higher risk to insurers.

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    Location

    Living in urban areas can result in higher rates due to increased risks of accidents and theft.

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    Vehicle type

    Driving expensive or high-performance cars usually means paying more for insurance.

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    Coverage levels

    Higher coverage levels increase your premiums. Minimum coverage is cheaper but offers less protection.

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    Insurance company

    Different insurers have various underwriting methods and discounts, so comparing quotes is essential.

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    Claims history

    A history of filing claims can lead to higher rates. It indicates higher risk to insurers. If you can afford repairs, it might pay not to file a claim.

How to Save on Car Insurance in North Carolina

Finding affordable car insurance in North Carolina can be done through various strategies. Whether you qualify for state-sponsored programs or not, there are ways to save on your premiums. Some options include shopping around, maintaining a good driving record, and considering higher deductibles. Here are some tips to lower your car insurance premiums:

1
Choose minimum coverage

Opting for state-mandated minimum coverage can save you money while still meeting legal requirements to drive. It's a cost-effective way to ensure you're insured without overspending.

2
Comparison shop

Getting quotes from multiple insurers allows you to compare rates and discounts, which can lead to the lowest rates. Don't forget to shop locally as insurers may offer region-specific discounts.

3
Look for discounts

Many insurers offer discounts for being a good student, having a safe driving record, being a military member, or when bundling your auto insurance with other policies. These can significantly lower your costs.

4
Increase your deductible

Choosing a higher car insurance deductible means you'll pay more out of pocket before your insurance kicks in, but it can significantly reduce your monthly premium. Ensure you can afford the deductible if an accident occurs.

5
Consider pay-per-mile insurance

If you don’t drive much, pay-per-mile insurance might be a cost-effective option. You pay a base rate plus a per-mile fee, so you only pay for the miles you drive.

6
Bundle your policies

If you also need homeowners or renters insurance, bundling them with your auto policy can lead to discounts. Often, the best home and auto bundles can save around $496 each year.

7
Drive a cheaper car

Your vehicle's make, model, and year impact insurance costs. Switching to one of the cheapest cars to insure can save you hundreds each year.

FAQ: Low-Income Car Insurance in North Carolina

Finding affordable car insurance can be tough for low-income drivers in North Carolina. Get answers to common questions about low-income car insurance in the state.

Does North Carolina have a state-backed low-income car insurance program?
How can low-income families get affordable car insurance in North Carolina?
Does your income affect the cost of car insurance in North Carolina?
What are the benefits of usage-based telematics programs for drivers with low-income in North Carolina?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.