The cheapest car insurance companies in North Carolina are Erie, Nationwide, and NC Farm Bureau. The difference between the cheapest and most expensive car insurance in North Carolina is $1,463 per year, so it pays to compare quotes.
North Carolina ranked 20th in our national cheap car insurance study. About 34% of North Carolina’s residents live in rural areas, which brings down the cost of insurance for everyone in the state. That’s because rural areas tend to experience less crime and have fewer drivers on the road, which means fewer accidents and claims. North Carolina’s insurance commissioner also sets a cap on car insurance rates, breeding more competition among insurers.
Cheap car insurance in North Carolina is available to everyone, but drivers who compare quotes get the absolute lowest prices. The average difference between the highest and lowest quotes for the same full coverage policy is $5,773 per year in North Carolina, for example, so drivers who shop around can potentially save a lot. To make the job easier, WalletHub analyzed quotes from all major insurance companies using multiple driver profiles and zip codes across North Carolina. You can check out our recommendations below, as well as compare the cheapest options to the best overall car insurance companies in North Carolina to make sure you find the right fit for your particular needs.
Cheapest Insurance Rates by Category
Cheap for Good Drivers
Cheap for Full Coverage
Cheap for Speeding Ticket
Cheap for One At-Fault Accident
Cheap for Poor Credit
Cheap for Young Drivers
Cheap for Old Drivers
Cheap for Drivers with a DUI
Cheap for Married Drivers
Cheapest Car Insurance in North Carolina for Good Drivers
Nationwide has the cheapest car insurance for most good drivers in North Carolina. Drivers who have never had an accident or received a citation are considered good drivers by insurers and pay less for insurance than drivers with bad records. In addition to low rates, good drivers can often qualify for additional discounts from their insurance company.
Cheapest Car Insurance in North Carolina for Full Coverage
Full coverage refers to a policy that goes beyond the minimum state requirements. Because full coverage protects you in more situations, it costs more than minimum coverage.
After a speeding ticket, most drivers will see their insurance rates go up for 3-5 years. It’s important to keep in mind that each insurance company calculates rates differently, so you should always get multiple quotes in order to make sure that you get the best deal.
Cheapest Car Insurance in North Carolina for Drivers with One At-Fault Accident
One at-fault accident will usually affect your insurance negatively for 3-5 years as insurers will consider you high-risk. Because of your higher rates, it is even more important to comparison shop.
Cheapest Car Insurance in North Carolina for Drivers with Poor Credit
A low credit score often flags drivers as higher risk, so insurers will usually charge them more for coverage. However, since insurers use different formulas to calculate premiums, poor credit might affect your rates more with one company than another. Because each insurance company treats credit differently, it pays to compare quotes.
Cheapest Car Insurance in North Carolina for Young Drivers
Young, inexperienced drivers pay more for car insurance because they have yet to prove themselves responsible behind the wheel. Young drivers are also statistically more likely to get into an accident than middle-aged drivers. As a result, most drivers will see their rates drop as they age.
Cheapest Car Insurance in North Carolina for Older Drivers
Although mature drivers pay less for car insurance than teens, older drivers start to see their rates go up as they enter their senior years. Comparing car insurance rates can save older drivers hundreds of dollars a year.
Cheapest Car Insurance in North Carolina for Drivers with a DUI
Drivers who have a DUI on their record typically experience much higher rates than drivers with a clean driving record or people with a history of less severe violations. A DUI usually affects your insurance rates for 3-10 years, but the violation itself may stay on your driving record for much longer than that.
To identify the cheapest post-DUI insurance companies, WalletHub compared rates for a 45-year-old, single man, with minimum coverage, one DUI, and good credit across major insurers.
Cheapest Car Insurance in North Carolina for Married Drivers
Married drivers typically enjoy cheaper car insurance rates than drivers who are single. Auto insurance companies generally view drivers who are married as more responsible and less of a risk to insure. To help married drivers further reduce their insurance costs, WalletHub compared major insurance companies’ rates for a 45-year-old, married man with minimum coverage, a clean driving record, and good credit.
Cheapest Cities for Car Insurance in North Carolina
The table above reflects the average annual cost of car insurance in North Carolina’s largest cities and towns.
Factors That Affect Car Insurance Premiums in North Carolina
Recap: Cheapest Auto Insurance Companies in North Carolina
The cheapest car insurance company in North Carolina is Erie, which charges an average of $53 per month for state-minimum coverage. In addition to being the cheapest auto insurer for North Carolinians overall, it is the cheapest option for a number of specific categories, such as full coverage and insurance for good drivers.
For your convenience, we’ve summarized the cheapest companies overall below.
5 Tips for How to Get Cheap Car Insurance in North Carolina
1. Compare quotes from both national and regional insurers
In North Carolina, regional insurers like Erie Insurance, Alfa Insurance, and North Carolina Farm Bureau might have lower rates than national companies like State Farm, GEICO, and Nationwide and have comparable customer satisfaction ratings.
2. Know the factors affecting insurance in North Carolina
Everyone knows that your driving habits and claims history affect how much you pay for car insurance. But in North Carolina, companies can also consider your driving experience, credit history, and marital status when setting premiums. The car you drive, your annual mileage, and even some factors beyond your control all impact the price of insurance.
3. Choose the coverage that is right for you
You need liability insurance to pay for the other driver’s damages if you’re at fault in an accident in North Carolina. Collision and comprehensive coverage, on the other hand, are optional and may be unnecessary if you own an older car. Usage-based insurance might be a better fit than a standard policy for low-mileage drivers, and going with a higher deductible or lower coverage limits costs less, too. Don’t skimp on the coverage you need, but do make informed choices. That way, you won’t end up paying for more car insurance than you need.
4. Search for discounts
Top car insurance companies in North Carolina have a variety of discounts, so almost anyone can find ways to save. You may be able to get a discount if you’re a student, veteran, good driver, homeowner, willing to go paperless, and more.
5. Maintain coverage
You’ll see higher rates if you let your insurance lapse, even if you don’t own a car. North Carolina drivers who don’t maintain continuous coverage pay an average of 6% more than those with five or more years of insurance history.
Video: Cheap Auto Insurance in North Carolina
Methodology for Selecting the Cheapest Auto Insurance in NC
WalletHub’s analysis of cheap car insurance companies in North Carolina is based on data from the North Carolina DMV and Quadrant Information Services. Together with that data, WalletHub used the characteristics listed below to create 40 different driver profiles designed to identify the cheapest car insurance companies for North Carolina drivers in a collection of key categories. For each profile, WalletHub compared quotes among top North Carolina car insurance companies by averaging premiums from 37 zip codes that represent at least 20% of North Carolina's population. Military-specific companies like USAA were only considered for the military-specific category, due to their eligibility restrictions. In some cases, they may still be the best option overall for eligible drivers.
In the table below, you can see all of the profile characteristics that were used in WalletHub’s analysis, in addition to the specific subset of characteristics that make up our Good Driver profile.
Clean, One Speeding Ticket, One At-Fault Accident, One DUI, Suspended License, Open Container, Red Light Infraction, Reckless Driving, One Not At-Fault Accident
Clean
Miles Driven Per Year
7,500 Miles, 15,000 Miles, 20,000 Miles
15,000 Miles
Coverage Level
Minimum, Standard, Full
Minimum
Discounts
None, Multi-Policy, Homeowner, Student
None
Credit Level
Poor, Good
Good
Filings
None, SR22, FR44
None
Car
Sedan, Minivan, SUV, Coupe, Truck
Sedan
Below are additional details regarding the terminology and specific characteristics of the variables in the above table:
Minimum Coverage: Coverage requirements of $30,000 in bodily injury liability per person, $60,000 per accident, and $25,000 in property damage liability, as well as $30,000 in uninsured motorist coverage per person, $60,000 per accident, and $25,000 uninsured motorist property damage coverage per accident, as required by North Carolina’s minimum coverage requirements.
Standard Coverage: Coverage levels of 50k/100k/25k of liability coverage and 50k/100k/25k of uninsured motorist coverage.
Full Coverage: Coverage levels of 100k/300k/50k of liability coverage, 100k/300k/50k of uninsured motorist coverage, and collision and comprehensive coverage with a $500 deductible.
Sedan: 2018 Toyota Camry.
Minivan: 2018 Dodge Grand Caravan.
SUV: 2018 Toyota RAV4.
Coupe: 2018 Ford Mustang.
Truck: 2018 Ford F-150.
Where driver profiles are not specified, WalletHub averaged North Carolina insurance quotes across 40 different driver profiles, using the above variables. Quote information is from Quadrant Information Services and is representative only. Individual rates will be different.
Questions & Answers
Finding the cheapest car insurance in North Carolina can be tough. But you’ve got the knowledgeable WalletHub community on your side. Other consumers have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines.
Car insurance in North Carolina costs $43 per month or $511 per year for minimum coverage, on average. The cheapest car insurance companies in North Carolina are EMC Insurance, Auto-Owners, and Farmers Mutual Insurance of Nebraska, and getting quotes from several companies can help you find the best deal.
The average cost of car insurance in North Carolina is 35% lower than the national average auto insurance premium. There are several factors that affect how much you'll pay for car insurance in North Carolina, including your driving record, age and location, the amount of coverage you purchase, and the insurance company you buy it from.
Average Cost of Car Insurance in North Carolina by Category
After an at-fault accident: $152 per month
Driver with poor credit: $59 per month
Teen driver: $145 per month
After a DUI: $168 per month
Average Cost of Car Insurance in North Carolina by Company
Note: Rates are an approximation based on a driver in North Carolina with minimum coverage and a clean driving record. Actual rates will vary.
How to Lower the Cost of Car Insurance in North Carolina
Shop around and compare quotes. We recommend comparing quotes from at least three different insurance companies to make sure you are getting the best rate.
Choose a higher deductible. Your deductible is the amount you have to pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your premiums but means you will have to pay more out-of-pocket when you file a claim.
Consider lowering your coverage. Consider purchasing only the minimum amount of coverage required by your state, rather than purchasing higher limits or a full coverage policy.
Look for discounts you may be eligible for. For instance, most insurance companies offer a good-driver discount for customers with a clean driving record, a good-student discount, or a discount for paying your premiums in full up front.
Erie has the cheapest full coverage car insurance in North Carolina, charging an average of $121 per month or $1,448 per year. This is cheaper than the $2,219 per year drivers pay for full coverage in North Carolina on average.
Cheapest Full Coverage Car Insurance in North Carolina
The city in North Carolina with the least expensive auto insurance premiums is Hendersonville, which has an average annual premium of $788 per year. By comparison, the overall average cost of car insurance in North Carolina is $987 per year.
Cheapest Cities for Car Insurance in North Carolina
You can get car insurance discounts in North Carolina based on how you drive, the car you own, and your relationship with your insurance company. In North Carolina, car insurance companies are allowed to consider factors such as employment, residential, and marital status when setting premiums. That means there are also discounts available for being married, owning a home, or being affiliated with certain employers.
Almost anyone can get a discount on car insurance in...
National General has the cheapest insurance in North Carolina for drivers who have committed SR-22-type violations, charging an average of $758 per year. North Carolina is one of 12 states that do not require high-risk drivers to file an SR-22 form as proof of insurance.
Even though drivers in North Carolina are not required to file an SR-22, coverage can still be a lot more expensive than average for risky drivers. For example, drivers in...
To get the best high-risk auto insurance in North Carolina, you should compare quotes from at least three different insurance companies. The best high-risk auto insurance companies in North Carolina are Nationwide, Erie, and State Farm because they offer the most competitive rates for high-risk drivers. You should also practice safe driving habits moving forward, so you can get even lower rates in the future.
Best High-Risk Auto Insurance Companies in North Carolina
The best car insurance in North Carolina for drivers with a DUI is from National General, Nationwide, and Erie. Getting a DUI in North Carolina will raise your insurance premiums by around 296%, bringing the cost of minimum coverage to $2,020 per year for the average North Carolina driver. You can minimize the cost of post-DUI car insurance by comparing quotes from the cheapest companies.
The cheapest car insurance in North Carolina costs an average of $40 per month ($479 per year), which is significantly less expensive than the national average cost of car insurance. Some of the cheapest car insurance companies in North Carolina include Erie Insurance, Nationwide, and North Carolina Farm Bureau.
Cheapest Car Insurance Companies in North Carolina
North Carolina law requires you to have $ 50,000 in coverage for one person's bodily injury or death, up to $100,000 total per accident, and $ 50,000 in coverage for other people's property damage when you are at fault. North Carolina also requires uninsured motorist insurance. UM replaces the liability coverage an at-fault driver should've had.
How Much Car Insurance Drivers Need in North Carolina
The best car insurance for young drivers in North Carolina is from GEICO, which is rated highly by WalletHub's editors for its discounts, customer reviews, ability to pay out claims, and competitive rates for young drivers. GEICO charges young drivers an average of $71 per month, while the state average is $71 per month.
Best Car Insurance for Young Drivers in North Carolina
Car Insurance is a necessary expense if you’re a driver, but trying to find the cheapest rates can be a time-consuming process. To gain more insight about getting cheap car insurance while still having quality coverage, WalletHub posed the following questions to a panel of experts in North Carolina. Click on the experts below to view their bios and answers.
What does it say about car insurance companies that so many have celebrity endorsers?
Do you think it’s fair to say that car insurance companies try to mislead customers or is it just marketing?
Is it fair for car insurance companies to consider gender or age when setting premiums?
Is it fair for car insurance companies to consider a driver’s occupation when setting premiums?
Do you think car insurance companies are fair to college students?
What advice do you have for new drivers when it comes to car insurance?
How do you think increased adoption of electric vehicles will change the car insurance landscape?
To what extent has technology disrupted the car insurance industry relative to others?
Bennett Quillen Adjunct Professor, Belmont Abbey College Read More
Daniel J. Findley Ph.D., PE – Associate Director, Institute for Transportation Research and Education; Adjunct Assistant Professor; Civil, Construction, and Environmental Engineering – North Carolina State University Read More
Rachel Shinnar Ph.D., Professor, Department of Management, Walker College of Business, Appalachian State University Read More
John J. Bethune Ph.D., Distinguished Professor of Economics, Barton College Read More
Sonya R. DiPalma Ph.D., Associate Professor, Chair, Department of Mass Communication, University of North Carolina Asheville Read More
Connor Kasten Ph.D., Assistant Professor, Department of Finance and Insurance, College of Business, East Carolina University Read More
