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The average cost of basic liability car insurance in North Carolina is $2,345 per year. Opting for full-coverage car insurance in North Carolina will leave you with an average cost of $2,323 per year. In comparison, the national average is $1,627 per year to buy basic liability car insurance and $2,297 per year to buy full-coverage car insurance.
Compare best car insurance quotes in North Carolina
When you compare car insurance quotes, you may find yourself looking at very different numbers. One company might quote you several hundred a year more than another—and you might find that all of your quotes are higher or lower than the averages above.
Why? It comes down to the way that insurance companies calculate premiums, which is based on risk. The way each company defines and measures risk is a little different, and everything from your gender and driving record to your ZIP code, marital status, and insurance history can play a role.
So let’s leave the averages behind and take a look at some real quotes that Jerry customers found in the app. Check them out below, along with our users’ thoughts on the broker experience.
So you’re looking for auto insurance in North Carolina. Naturally, you want to get a policy with the best company—the one with the lowest rates, the best coverage options, and the most responsive customer service. So which company is it?
Ask three friends, and you’ll probably get three different answers. Companies like Allstate, GEICO, and State Farm all have tons of customer loyalty in North Carolina. So which one has the best rates?
Again, it’s impossible to pick just one winner. That’s because car insurance premiums are highly personalized, with every company using a slightly different methodology to analyze a wide range of factors ranging from your credit score and age to the size of your vehicle’s engine. Progressive, for instance, tends to be more favorable to drivers with poor credit, while Nationwide has the lowest average rates for families with teen drivers.
That’s just looking at the biggest national companies—but you may find that you get better rates or better service from a smaller insurer, such as Erie Insurance or North Carolina Farm Bureau.
Bottom line: the only way to find the best car insurance company in North Carolina is to compare rates from multiple companies. Jerry is a licensed insurance broker and AI-powered super app that’s partnered with over 55 top-rated insurance companies to find you the cheapest rates with the best providers. In just 45 seconds, Jerry can analyze your profile, compare it to real-time quotes, and show you the best options for you.
North Carolina has two key factors working in its favor to keep car insurance costs low:
- A mostly rural population
- State laws capping insurance premiums
Together, these factors ensure most drivers in the Tar Heel state pay well below the national average for their coverage.
Is North Carolina insurance expensive?
In general, car insurance in North Carolina is cheaper than in most other states. However, drivers in coastal and urban areas of the state will likely see higher premiums than those in more rural areas.
Drivers with driving violations might also have a hard time benefitting from the state’s generally cheap car insurance prices as well.
How much does auto insurance cost in North Carolina?
Luckily for North Carolina drivers, the average cost of car insurance in the Tar Heel state is well below the national average. But that’s not to say it’s never expensive—if you’re seeing a high rate, it might be related to these three premium-elevating factors:
North Carolina has the fifth-highest accident rates in the country (based on data from 2019)
Hurricanes and flooding pose serious property damage risks on drivers in the eastern part of the state
About 10% of North Carolina drivers are uninsured
Any of those factors could raise your rate, especially if you live in an urban or coastal area (or both—we’re looking at you, Wilmington!). But with help from Jerry, you can narrow down the best coverage options from the cheapest car insurance companies in North Carolina. Just download the app, answer a few questions, and you could be saving in minutes!
Of those three, only liability insurance is required by law in North Carolina. The minimum coverage requirements for all North Carolina drivers include at least $30,000 per person and $60,000 per accident for bodily injury liability and $25,000 in property damage liability per accident.
While liability insurance will protect your wallet if you’re in an at-fault accident by paying for the other driver’s repairs and medical bills, it won’t pay any of your expenses. That means that if your car’s damaged in any type of car accident or by theft, vandalism, severe weather, or other causes, you’ll be on the hook for all the repairs.
That’s why experts always recommend purchasing a so-called “full-coverage policy” including both collision coverage and comprehensive insurance. Together, these coverages will pay for most damage to your vehicle caused by accidents and acts of God.
But adding full coverage to your policy costs more than sticking to state minimum coverage limits. Want to see if you can afford the upgraded protection? Check out the graph.
Why is full coverage car insurance so expensive in North Carolina?
Cheap car insurance with a DUI or speeding ticket in North Carolina
A poor driving record is one of the biggest factors that can drive up your car insurance premiums in North Carolina. It’s probably no surprise that a major charge like DUI or reckless driving can cause your rate to skyrocket, but even a fairly minor speeding ticket can add to your premium, and a pattern of violations could get you labeled a high-risk driver by your auto insurance company.
Not to worry: Jerry doesn’t just find savings for drivers with spotless records. Among our partner companies are insurers like The General and Dairyland who specialize in high-risk car insurance—and with Jerry’s help, you may even find a better rate from a non-specialist company!
Here’s just a sample of the savings that Jerry customers with spotty driving records have found:
One more group of high-risk drivers who may have a hard time getting quotes in North Carolina? Drivers under 25 years old. Because insurers value experience, any driver under 25 is likely to pay a higher rate than a driver with a proven record of safe driving.
Even if your driving history is perfect, statistics can still sway insurance providers—and statistics show that young drivers have a higher rate of accidents, violations, and insurance claims. Those statistics are highest for 16-year-old drivers, but any teen driver and their family will see elevated rates.
But that doesn’t mean you have to wait until your 25th birthday to pay a reasonable rate. Shopping around for quotes, building good credit, and achieving a clean driving record can all help you find lower premiums and qualify for discounts.
Compare average premiums for different age groups—and average savings with Jerry—below.
One thing insurance companies consider when setting your rate is your ZIP code. By looking at local accident rates, weather patterns, and crime statistics, they’ll estimate the level of risk that drivers in your area face and adjust your rate accordingly.
Conversely, Asheville is the cheapest city for car insurance in North Carolina. Drivers in Gainesville can expect lower average rates of $556 per year.
City With Highest Rates of Accidents in North Carolina
Charlotte has the highest accident rates in North Carolina. 14.59% of drivers in Charlotte already have a prior at-fault accident on their record. Risk factors (such as a history of at-fault accidents) can raise insurance rates.
Finally, let’s talk about the impact your vehicle can have on your insurance rates. It probably goes without saying that more expensive vehicles cost more to insure—but it’s far more than just the sticker price that influences your rates.
Take the Toyota RAV4, one of the most popular SUVs in North Carolina (and in the country). Toyota RAV4 insurance costs are low in part because its affordable price tag and overwhelming popularity make repairs fairly cheap. But Toyota Corolla LE insurance costs are higher, even though it’s cheaper than the RAV4 and the best-selling car in the entire world. Shouldn’t it be cheaper to insure?
Not necessarily. Another factor that insurance companies look at is safety—and while the Corolla gets great safety ratings, it’s less inherently sturdy as a compact car than the RAV4 crossover SUV.
Bottom line: if you want the cheapest vehicle to insure, go for a small SUV with good safety and reliability ratings. Sedans, trucks, and larger vehicles will all cost more, as will any luxury car or performance-oriented vehicle that’s built for speed. But if your vehicle has higher insurance premiums, there’s no need to go shopping for a new one—download the Jerry app instead and find out if you’re overpaying.
The most popular vehicle in North Carolina is the Toyota Camry. On average, Camry drivers pay $1,426 a year in car insurance. Camry owners can save money on their car insurance expenses by comparing quotes with Jerry.
What at the minimum car insurance requirements in North Carolina?
Like most states, North Carolina sets legal requirements for car insurance. To drive a car in North Carolina, you’ll need to carry proof of insurance that meets those minimums.
How much insurance do I need in North Carolina?
North Carolina requires that every resident have at least $30,000 per person/$60,000 per accident for bodily injury liability and $25,000 per accident in property damage liability.
What do you need if you’re pulled over?
In case you are pulled over in North Carolina, you are required to show your driver’s license, proof of insurance, and registration. Thankfully, digital insurance ID cards are accepted by police and the DMV, so you will always have your stored proof of insurance available 24/7 in the Jerry app.
Is North Carolina a no-fault state?
No. North Carolina is an at-fault state. This means the at-fault driver’s insurance will pay for the not-at-fault driver’s and passengers' injuries, once the at-fault driver’s insurance company accepts liability and confirms that there is enough coverage.
But getting minimum coverage is just the beginning. If your budget is extremely limited or if you drive a very old vehicle, sticking to state minimums might make sense. In most cases, though, it’s worth going beyond North Carolina’s minimum requirements and purchasing a full coverage car insurance policy.
North Carolina ranks 29th for traffic and infrastructure. Due to higher volumes of traffic and poor road infrastructure, it’s more likely that you’ll be involved in a car accident on North Carolina’s roads. Protect you and your vehicle with collision coverage.
20,520 North Carolina vehicles were stolen in 2020, this makes North Carolina the 10th highest state for vehicle theft rate. A good way to protect yourself against getting a vehicle stolen is with comprehensive coverage.
In North Carolina, 7.40% of drivers are uninsured. Get uninsured/underinsured motorist coverage to stay covered! If you’re ever in an accident with an uninsured driver, you’ll thank yourself for getting uninsured coverage.
Residents rank North Carolina’s roads a 5.69/10. With poor road quality, it’s a good idea to get roadside assistance in case bad road conditions leave you stranded.
How to save money on car insurance in North Carolina
The fact that North Carolina has fairly affordable car insurance is a good thing. But you can’t have too much of a good thing—so here are some strategies to help you save even more on car insurance in the Tar Heel State.
Shop around for quotes
Ask any insurance agent and they’ll agree: comparing quotes is the best way to find affordable car insurance coverage. But it can also be extremely time-consuming—especially if you’re doing it on your own. Work with a broker or use a car insurance comparison app like Jerry to gather rates from at least three insurance companies before deciding on the best plan for you.
Here are some of the most popular ones for drivers in North Carolina:
Clean Driving Record Discounts
People with clean driving records don’t make claims as often and are less likely to be in an accident. Because of this, insurance companies will give drivers with clean driving records discounted rates.
Customers who bundle multiple kinds of insurance, such as car, home, and renters, are eligible for bundling discounts.
Married drivers are statistically less likely to be in an accident. If you’re a married driver, you could get discounted insurance rates.
Increase your deductible
Your car insurance policy comes with a deductible—a set amount that you agree to pay out of pocket before your collision or comprehensive insurance kicks in on a claim. In most cases, your deductible will be either $500 or $1,000, and the higher your deductible, the less you pay month to month.
If you want to lower your regular insurance payments, you can talk to your insurance company about setting a higher deductible. Only do this if you’ve got a lot of cash on hand, though. If you’re not certain you’d be able to make the full deductible payment out of pocket in the event of a claim, it’s better to stick with the higher payments.