UPDATED: MARCH 14, 2023 | 3 MIN READ
The 9th most populated state, North Carolina, has surprisingly low car insurance rates for its size. Car insurance rates are reasonable even in large cities like Charlotte and Durham, North Carolina. Read on to learn everything about insuring your car in the Tar Heel State.
Best North Carolina Car Insurance Companies
Finding the best North Carolina car insurance company means considering your needs. We’re ready to help with your vehicle insurance criteria in North Carolina. We analyzed all of the insurers in the state to provide you with the facts for the best in the business.
Cheapest North Carolina Car Insurance Company
State Farm and other national car insurance companies in North Carolina offer affordable rates, but the cheapest option is regional carrier Erie Insurance. Erie’s average minimum policy is only $334 a year, and drivers pay an average of $880 annually for full coverage. Both of these rates are 30% cheaper than the statewide average.
Company With the Best Customer Service
Affordability isn’t the only factor when picking a company for your North Carolina car insurance. Erie wins recognition for best customer service in the state. The insurer scores 917 out of 1000 on the JD Power Shopping Survey and ranks among the top companies yearly. Customers like the ease of Erie’s claim filing and other needs.
Company With the Best Premium-Reducing Programs
For North Carolina drivers, discounts for a good driving record, safety features, and good grades are possible. Discounts, but Erie Insurance stands out for the numerous discounts available.
Erie offers discounted rates if your vehicle is in storage, if you’re recently divorced, a college student, or if you’re a high schooler with good grades. These discounts are in addition to various savings you may receive based on your vehicle’s equipment and other factors.
Company With the Best Discounts
Bundling discounts vary by provider and state, so you should request quotes from various North Carolina car insurance companies. Progressive is traditionally one of the best choices for bundling car insurance. North Carolina has other insurers like Allstate and Erie that offer robust bundling discounts. Overall, Allstate features an average discount of 24% when you bundle your home and auto insurance.
Local and Regional Car Insurance Carriers In North Carolina
North Carolina Farm Bureau
The North Carolina Farm Bureau Federation began in 1936 to serve farmers across the state. They write North Carolina automobile policies with the following mandatory coverages.
Bodily injury liability, property damage liability, uninsured motorist bodily injury, and underinsured/uninsured motorist property damage are all provided by Farm Bureau.
Discounts are available for good students, low mileage drivers, multiple vehicles, and drivers with a good driving record. You’ll also save money if you bundle your policies with the Farm Bureau.
Erie Insurance offers North Carolina drivers all of the state’s mandatory coverages at a reasonable rate, including bodily injury liability, property damage liability, uninsured motorist bodily injury, and underinsured/uninsured motorist property damage.
Erie’s Comprehensive coverage includes windshield and glass repairs. The company has add-ons for North Carolina drivers, such as pet coverage, personal item coverage, locksmith services, and roadside assistance.
Erie’s top savings opportunity is its ERIE Rate Lock® feature. With Rate-Lock, your rates won’t change even if you have a claim.
Penn National Insurance
Penn National Insurance offers insurance to North Carolina drivers, including Charlotte, Raleigh, and Greensboro. The company’s standard Collision policy pays for repairs to your car after an accident, regardless of fault.
Penn National offers five premium options and a discount for selecting higher deductibles. Its Other-Than-Collision policy pays for repairs to a vehicle damaged by something other than a collision. Penn National writes property damage liability coverage that pays for damage you cause to another person’s car or property.
Its coverage includes medical payments and no-fault or personal injury protection. The insurer rewards conscientious drivers with discounts for full premium payment, anti-lock brakes, daytime running lights, passive restraints, good students, and drivers who pass a driving course.
North Carolina Insurance Demographics
North Carolina’s demographics contribute to the lower car insurance rates. The state features a vehicle theft rate lower than the national average. North Carolina is educated, with over 10% of the population with a Bachelor’s degree.
- Crime Rates: While some crimes in the state are higher than the national average, North Carolina’s vehicle theft rate is lower.
- Average Household Income: North Carolina’s average household income is $70,721.
- Median Age Range: The median age in North Carolina is 38.9, and the median age range is 15-19. However, the state drivers’ largest population is adults aged 35-44.
- Education: 20% of North Carolina residents hold a Bachelor’s degree.
Common Risk Factors In North Carolina
North Carolina has lower risk factors than other states. Winter driving may be complicated or treacherous, with snow, ice, and sleet. However, the state is most vulnerable to hurricanes. It ranks third among hurricane-prone states. Hurricanes and even tropical storms can affect North Carolina car insurance rates.
Auto Insurance Laws In North Carolina
North Carolina auto insurance laws require you to carry liability insurance and maintain coverage. You’re subject to fines and other penalties if you drive without insurance. The state also requires new drivers or drivers with violations to file paperwork that certifies they carry the minimum insurance required.
What are the minimum car insurance requirements in the state?
North Carolina requires a minimum of $30,000 Bodily Injury liability per person and $60,000 total for all persons. You’re also required to carry $25,000 for Property Damage liability.
Am I required to carry uninsured motorist coverage?
Yes. Drivers must carry uninsured motorist coverage in North Carolina.
North Carolina DL-123 policies
The state may require a DL-123, a document that states you carry the minimum car insurance North Carolina needs. North Carolina requires a DL-123 from teenage drivers, first-time drivers in the state, and drivers with violations.
Is North Carolina a no-fault state?
North Carolina is an at-fault state. If you’re in an accident and injured, you can seek compensation from the at-fault driver.
What happens if my vehicle isn’t properly insured in North Carolina?
Failure to adhere to North Carolina car insurance laws may result in fines and additional penalties. You may have a fine of up to $150, or the state may suspend your license. Penalties vary based on whether you’re a first-time or repeat offender.
Does North Carolina accept digital insurance cards?
Yes. North Carolina accepts digital insurance cards.
How Much Does Car Insurance In North Carolina Cost?
Car insurance in North Carolina costs an average of $865 a year. Rates will vary based on the driver’s location, company, and age. The dense urban areas of North Carolina will feature higher car insurance rates than the more rural spots of the state. Despite this, car insurance in North Carolina is much more affordable than in other states.
Average Cost of Car Insurance By City
North Caroline car insurance costs are often location-based. Cities like Charlotte will feature higher rates, but venture to Winston-Salem, and you’ll have a rate under $1,400 a year.
|City||Average North Carolina Car Insurance Cost|
Average Cost of Car Insurance By Company
Your rate for car insurance varies by company, and some companies vary widely from each other. For Progressive, vehicle insurance in North Carolina sits around $1,700 a year, but Allstate or regional carrier Erie can get you a cheaper rate. Remember that your rate depends on your car, age, gender, location, and driving record.
|Car Insurance Company||Average Full-Coverage Premium (Annually)|
Average Cost of Car Insurance By Age
Younger drivers pay more for car insurance because they’re new on the road and at high risk for accidents. Drivers under age 18 pay higher rates, but once they turn 20, their rates decrease if they maintain a good driving history. After age 20, the rates steadily decrease until a driver turns 70, then they only go up slightly.
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Average Cost of Car Insurance By Gender
Car insurance costs for North Carolina drivers vary by gender, but only slightly. The difference is usually only a couple of dollars.
|Gender||Average Full-Coverage Premium (Annually)|
Average Cost of Car Insurance By Credit Score
Your insurance company will typically use an “insurance credit score,” which shows the likelihood you’ll file claims or losses. Car insurance companies in North Carolina may also use your credit score as one way to determine your premium. Drivers with good credit often have a lower premium amount.
|Credit Score||Average Premium (Annually)|
Average Cost of Car Insurance By Driving Record
Your driving record is integral to your insurer’s premium. Even a speeding ticket can increase your premium by 50% because it shows you’re a riskier driver than someone with a clean record. If you have a DUI, expect to pay over 300% higher car insurance rates in North Carolina.
|Driving Incident||Average Full-Coverage Premium (Annually)||% Increase In Average Full-Coverage Premium|
What Optional Insurance Coverages Should You Consider?
If you want to extend your North Carolina car insurance coverage, you can add a few options to protect your vehicle better. If you’re in an accident, these coverages can help with repair bills, medical payments, and other concerns.
- Collision Coverage: If you collide with a car or a stationary object, this coverage helps with your repair bills.
- Comprehensive: Comprehensive coverage covers damage from non-collision events and collisions with animals, such as if you hit a deer.
- Medical Payments: Car accidents resulting from medical bills or a fatality fall under this coverage. It makes payments to you or your passengers if you have an accident.
- Roadside Assistance: Stuck on the road in North Carolina? This coverage helps you with flat tires, dead batteries, and other roadside emergencies.
North Carolina Auto Insurance Discounts
Drivers should look for a variety of car insurance discounts. While discounts vary by company and location, you may be eligible for savings like a good student discount, consumer loyalty, and an accident-free discount. Some companies like Erie offer a diminishing deductible if you haven’t had a ticket or accident in several years. The best way to find discounts for auto insurance in North Carolina is by browsing providers.
Is car insurance expensive in North Carolina?
No. Auto insurance in North Carolina is lower than the national average for both minimum and full coverage.
How much is car insurance in NC a month?
On average, the minimum car insurance in North Carolina is $41 a month.
Is car insurance required in North Carolina?
Yes. You need car insurance if you drive in North Carolina or own a registered vehicle in the state.
What kind of car insurance do I need in NC?
You must have continuous Automobile Liability insurance in North Carolina.
Is car insurance cheaper in NC or SC?
North Carolina car insurance is cheaper than rates in South Carolina. South Carolina has more risk for weather-related damage and a higher number of car accidents.
How To Purchase the Best Car Insurance In North Carolina
North Carolina has plenty of providers if you want a car insurance policy. You should evaluate your needs regarding a minimum and full coverage policy. If you financed your car, check what your lender requires for car insurance. Once you know what car insurance you need, start comparing rates by providers and see what possible discounts may apply.