The best, cheapest car insurance in North Carolina

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Best car insurance company in North Carolina

Drivers in North Carolina pay an average of $1,741 a year or $145 a month for car insurance coverage which makes it the 33^rd most expensive state in the country.

Even though car insurance is pretty expensive in North Carolina, it’s possible to find affordable coverage with top insurers such as Erie Insurance, State Farm, Nationwide, and other insurers.

State Farm is our choice for the best car insurance in North Carolina. It finished first in our rankings with 4.73 out of 5 stars and an average premium of $1,180 a year, or $98 a month, which is $561 less than the state average.

Erie Insurance was second with a score of 4.64 stars followed by Nationwide with 4.48 stars.

The best car insurance companies in North Carolina

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state and regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in North Carolina

Erie Insurance has the lowest average rate in North Carolina at $1,082 a year or $90 a month.

State Farm is the next most affordable at $1,180 annually and Nationwide at $1,513. While these insurers had the cheapest average premiums, there are plenty of other options for coverage in the state.

Insurers consider a wide variety of factors when setting a rate and use proprietary algorithms which can result in dramatic differences in premium quotes. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “North Carolina, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

The data shows how shopping around for coverage can result in savings. While Erie Insurance had the lowest average rate at $1,082, Allstate was the most expensive at $2,994.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in North Carolina

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

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Full coverage car insurance in North Carolina

As noted, the rates above are for full coverage car insurance. Residents of North Carolina will often be advised to get full coverage, which includes both liability protection as well as collision and comprehensive. Liability helps pay medical and legal bills for injuries or damages you are responsible for after an accident. However, liability doesn’t cover damage to your vehicle or your injuries.

Collision will pay to repair your vehicle if it is damaged after colliding with another vehicle or object. Comprehensive covers perils such as fire, theft, flooding, vandalism and more.

You can find out more about liability, collision, and comprehensive coverage here.

Shopping for car insurance in North Carolina

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age/income and profession, I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in North Carolina by age

Statistics show that young drivers, because they are inexperienced and tend to take more risks, have more accidents and claims, all of which lead to higher premiums for younger drivers.

“Data indicates that teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

Erie Insurance is the cheapest insurer in North Carolina for teens.

Age factors into a premium as the data clearly shows. Teens pay the highest rates by far with the lowest premium coming in at $2,240 which is 92% more expensive than the most affordable coverage for seniors at $1,165 and 79% more than young drivers’ best rate of $1,251.

Rates start to drop, assuming their driving record stays clean as teens move into their young adult years and tend to stay stable until a driver gets into their 70s when rates will go up a bit.

Cheapest car insurance for senior drivers in North Carolina

According to our data, senior drivers pay roughly 31% more than middle-aged drivers.

Seniors tend to pay slightly higher car insurance rates than younger drivers. In North Carolina, the cheapest insurance company for senior drivers is Erie Insurance at $1,165 a year or $97 a month. State Farm grabbed the second-place spot with premiums running $1,262 annually or $105 a month, Nationwide was third at $1,435.

Seniors pay higher rates thanks to age-related issues. They often suffer from vision and hearing issues as well as slowing reflexes and medical issues. This all leads to more accidents and claims, which pushes up the cost to insure seniors.

The chart below shows the average premium for senior drivers.

Average rates for seniors in North Carolina

Car insurance for young drivers in North Carolina

While rates start to drop for teen drivers as they become young adults, they still pay slightly higher rates than more experienced drivers. According to our data, Erie Insurance is the cheapest insurer for drivers in their early 20s with an average premium of $1,251 a year or $104 per month.

GEICO was the second cheapest insurer at $1,689 and State Farm will insure a young driver in North Carolina for $1,860 a year.

Rates will continue to drop (assuming a clean driving record) as drivers hit their late 20s and move into their 30s.

The chart below shows the average premiums for young drivers.

Average rates for young drivers in North Carolina

Car insurance for teen drivers in North Carolina

Adding a teen to a car insurance policy will always push up the rate. Teens are the least experienced drivers out on the road which leads to more accidents and claims and higher premiums.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

For North Carolina teens, Erie Insurance is the most affordable option with a premium of $2,240 a year or $187 a month. State Farm is the next most affordable at $2,659 a year or $222 a month followed by Nationwide running $3,316 a year.

If your teen has a B average or better, ask for a good student discount to help save a bit of money. Having your teen drive an older vehicle will also help save some money. If the car is old enough that you wouldn’t repair it after an accident, you may be able to drop collision and comprehensive.

The chart below shows average premiums for teens in North Carolina:

Average rates for teens in North Carolina

Average cost of car insurance in North Carolina

North Carolina is the 33^rd most expensive state (Louisiana is number one) when it comes to car insurance with an average premium of $1,741.

The table below shows the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in North Carolina

Which North Carolina ZIP codes are the most expensive for car insurance?

Insurers consider the ZIP code where your car is parked when setting a premium. High crime rates or frequent severe weather will result in a higher premium.

According to our analysis, the following ZIP codes are the most expensive in North Carolina for car insurance. Newell tops the charts at $2,136 a year.

Here are the most expensive ZIP codes in North Carolina for car insurance:

Most expensive ZIP codes in North Carolina

Which North Carolina ZIP codes are the cheapest for car insurance?

When it comes to cheap car insurance in North Carolina, these ZIP codes have the most affordable coverage. The area around Lake Junaluska has the lowest premiums in North Carolina with an average premium of $1,477.

Least expensive ZIP codes in North Carolina

Cheapest car insurance for high-risk drivers in North Carolina

If you have an at-fault accident, DUI or speeding ticket on your driving record, your insurer may consider you a high-risk driver and will push up the cost of your coverage.

A speeding ticket increases the average premium to $2,211 and will stay on your record and impact your premium for three years.

If you are responsible for an accident, your rates will push the average cost of coverage to $2,484.

A DUI is considered a major violation and will raise the average premium to $5,799.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in North Carolina after a traffic incident

Minimum car insurance requirements in North Carolina

Most states require all drivers to carry a minimum amount of liability coverage to drive legally. North Carolina requires drivers to carry 30/60/25 in liability coverage, which translates into:

• $30k for bodily injury and $50,000 for death for a person involved in an accident
• $60k for bodily injury and $100,000 for death for two or more people in an accident
• $25k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like North Carolina.”

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.

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