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 is the cheapest option for car insurance in North Carolina.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age and marital status as well the vehicle. 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.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The numbers highlight these differences. Allstate is the most expensive insurer in North Carolina with an average premium of $2,994 a year.

On the other hand, as mentioned above, the average premium for Erie Insurance policyholders in North Carolina is $1,082 a year. State Farm had the second cheapest coverage in North Carolina at $1,180 and Nationwide rounded out the top three cheapest at $1,513.

Below is a list of the cheapest full-coverage car insurance rates in North Carolina for a 40-year-old driver of a 2023 Honda Accord LX.

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.

Full coverage car insurance in North Carolina

As noted, the rates above are for full coverage car insurance. Full coverage car insurance adds collision and comprehensive to your liability insurance coverage, so your vehicle is repaired or replaced after an incident.

Full coverage insurance includes collision and comprehensive which will pay to repair your vehicle. Collision covers damage caused by a collision with another vehicle or object while comprehensive repairs damage done by perils such as fire, theft, flooding, vandalism, and more.

Learn more about liability, collision and comprehensive coverage.

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

Insurance companies consider your age when setting a premium and teens and young adults pay more for coverage as statistics show that young drivers, because they are inexperienced, have more accidents and claims.

Regardless of your age, in North Carolina, Erie Insurance is the most affordable coverage with an average rate of $1,082 a year.

As teens transition into young adults and get more experience under their belt rates start to drop. By their mid to late-20s – assuming they keep their record clean – driver rates should stabilize and then stay stable until the driver moves into their 70s when rates will start climbing again.

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 young adults pay less than teen drivers, they still pay more than older more experienced drivers. The best choice for young adults (early 20s) in North Carolina is Erie Insurance with an annual rate of $1,251 or $104 a month.

GEICO had the second cheapest premium at $1,689 a year followed by State Farm was third at $1,860.

If young drivers keep their driving record clean, their rates will drop down as they move out of their 20s.

The table below shows the best insurers for young drivers in North Carolina:

Average rates for young drivers in North Carolina

Car insurance for teen drivers in North Carolina

Although teen drivers always pay much higher premiums than other driver groups, Erie Insurance offers teens the cheapest rate at $2,240. Teen drivers are inexperienced and are big risk takers which results in more accidents and claims, pushing up the cost of coverage.

“Teenagers are more likely to be involved in accidents than older drivers because of their lack of experience. This increased risk results in higher insurance rates because insurance companies regard them as high-risk drivers,” says Goronga. “Teenagers are also more likely to engage in risky driving behaviors, such as distracted driving or speeding, increasing their chances of being involved in an accident.”

State Farm has the second most affordable premium at $2,659 a year followed by Nationwide at $3,316 annually.

Our data clearly shows how dramatic premium differences can be for teens and how important shopping your coverage is when trying to find the best rate for your specific risk factors. While Erie Insurance was the most affordable at $2,240, Allstate was the most expensive with an annual premium of $6,888.

There are a few ways to save some money when insuring a teen. Ask your insurer for a good student discount if they are carrying a B average or better. Putting your teen in an older vehicle that you wouldn’t repair after an accident can help save some money by dropping collision and comprehensive. Just keep in mind that doing so means you’ll be on the hook for any damage if they’re in a crash.

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

The average cost of car insurance in North Carolina is $1,741, which makes it the 33^rd most expensive state in the country behind Louisiana and Florida.

Metropolitan areas – and all states have them – equals lots of drivers, which often leads to car crashes and claims.

“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,” says Gao.

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.

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?

The cheapest ZIP codes for car insurance in North Carolina tend to be in rural areas where there are fewer people and cars which leads to lower accident and claim rates. Lake Junaluska has the most affordable ZIP code in North Carolina with an annual premium of $1,477.

Least expensive ZIP codes in North Carolina

Cheapest car insurance for high-risk drivers in North Carolina

Drivers with a speeding ticket, DUI or at-fault accident on their record are often considered high-risk drivers and end up paying more for coverage. The increase can range from reasonable for a speeding ticket to a big leap in costs for a DUI.

The data showed that a speeding ticket will result in a 58% increase, pushing the average rate to $2,211. Speeding tickets will typically impact your premium for at least three years.

An at-fault accident will raise your rates by 78% to an average of $2,484. A DUI will result in the biggest increase, sending your premium up 315% to an average of $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.”

Explore other insurance options in North-Carolina

Non-owner auto insurance in North Carolina

Average renters insurance cost in North Carolina

Average homeowners insurance cost in 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.