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

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.

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.

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.

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.

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.

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.

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.

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:

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.