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Car insurance in Raleigh costs $1,703 per year for full coverage – $142 per month. State Farm offers the cheapest car insurance policies at an average of $89 monthly.

Raleigh is the capital of North Carolina and the second-largest city in the state with a population of around 476,000. 

Learn about the cheapest car insurance companies in Raleigh, how much car insurance you need in Raleigh and how its insurance rates compare to other large U.S. cities.

Key Takeaways

  • Full coverage car insurance in Raleigh is $1,703 annually, lower than the nationwide average of $1,895.
  • State Farm is the cheapest car insurance company for a full coverage policy in Raleigh. 
  • Car insurance in Raleigh is $38 per year cheaper than the North Carolina statewide average of $1,741 for a full-coverage policy.

How to find the best car insurance in Raleigh

If you want to find the best car insurance in Raleigh, getting multiple quotes is essential. When you get quotes from at least three companies, you can compare costs on similar policies to determine the most affordable option for your situation. Before committing to a policy, ask about any discounts you qualify for

Cheapest car insurance company in Raleigh

State Farm offers the cheapest insurance coverage in Raleigh, North Carolina, with an annual average rate of $1,068 for full coverage. The next cheapest company is Erie Insurance at $1,073 per year. 

See other cheap car insurance rates in Raleigh in the table below.

Average annual rates from insurers in Raleigh, NC

Company Average annual rates for state minimumAverage annual rates for 50/100/50 liability onlyAverage annual rates for full coverage
State Farm$375$413$1,068
Erie Insurance$352$387$1,073
North Carolina Farm Bureau$375$416$1,178
Penn National Insurance$547$602$1,803
UTICA Grp$760$831$1,998

How much is car insurance in Raleigh per month?

Car insurance in Raleigh costs $45 per month for a state minimum policy and $142 per month for a full coverage car insurance policy, on average, according to recent data. State Farm offers the cheapest car insurance, followed closely by Erie – at an annual difference of $5.

See monthly rates from North Carolina insurers in the table below.

Monthly rates for car insurance in Raleigh, North Carolina

Company Average monthly rates for state minimum Average monthly rates for 50/100/50 liability onlyAverage monthly rates for full coverage
Erie Insurance$29$32$89
State Farm$31$34$89
North Carolina Farm Bureau$31$35$98
Penn National Insurance$46$50$150
UTICA Grp$63$69$166

How do rates in Raleigh compare to other large cities in the U.S.?

Car insurance is cheaper in Raleigh than in larger cities. Compare Raleigh’s monthly average rate of $142 to Los Angeles’ $262 or a rate of $217 in New York, New York.

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

See how much you can expect to pay for car insurance in several major U.S. cities in the table below.

Monthly full-coverage car insurance costs in major U.S. metropolitan areas

CityAverage monthly premiums
Colorado Springs$196
Kansas City$180
Long Beach$223
Los Angeles$262
New York$217
San Antonio$182
San Diego$194
San Jose$200
Virginia Beach$121

Here’s what you need to know when driving in Raleigh

Raleigh drivers spend an average of 26 minutes commuting to work. 

Here are a few tips for drivers in Raleigh, North Carolina:

  • Use a maps app to get directions even if you know where you’re going – the map can reroute you to avoid traffic.
  • Rush hour runs from 7:30-9 a.m. and 4-6 p.m. If possible, avoid the roads during these times. 
  • During the winter months, add a tow chain, first aid kit and blankets to your vehicle for safe driving. If possible, stay home when winter weather makes driving conditions poor. 

And there are a few city restrictions in Raleigh. Miscellaneous driving restrictions in the city of Raleigh, North Carolina:

  • It’s illegal to be moving on the road with a nonmotorized or toy vehicle, like sleds or roller skates. Bicycles are allowed. 
  • You cannot back into a crosswalk or intersection unless it’s completely safe to do so. 
  • You cannot have more than three people in the front seat. 
  • It’s illegal to drive between vehicles that are a part of a funeral procession. 

How much car insurance do I need in Raleigh?

In Raleigh, the car insurance requirements follow the state of North Carolina’s guidelines. Here is a look at the requirement minimum coverage amounts:

  • $30,000 in bodily injury for a person involved in an accident 
  • $60,000 for bodily injury per accident
  • $25,000 in property damage coverage per accident

Average cost of car insurance in Raleigh

The average annual cost of full coverage car insurance in Raleigh is $1,703 – $38 cheaper than the North Carolina statewide average of $1,741. That’s quite a bit lower than the nationwide average of $1,895.

Annual average rates in Raleigh for state minimum coverage and full coverage

State minimum coverage in RaleighAnnual full coverage rates in Raleigh

How much does car insurance in Raleigh cost with violations?

A history of moving violations can push your car insurance costs higher. That’s especially true if you commit a serious violation, like a DUI. 

For example, Raleigh drivers see their rates increase by an average of 68% after an at-fault accident. If you are caught speeding, that ticket could push your car insurance rates up by an average of 57%. DUIs also lead to higher costs, with an average rate increase of 303%. Bad credit in Raleigh, NC, increases your rates 47%.

See rate increases in Raleigh in the table below, by violation.

CityViolation% increase
RaleighAt-Fault Accident68%
RaleighBad Credit47%

Cheapest car insurance in Raleigh by age

Car insurance for teens in Raleigh can get expensive – the annual rate for an 18-year-old is $3,767 per year for a full coverage policy. Rates start to head down at age 25 and back up in your late 60s. See more rates by age in the table below.

Annual rates for state minimum and full coverage car insurance in Raleigh, by age

AgeState minimum coverageFull coverage

Compare auto insurance rates in Raleigh by ZIP code 

Where you live also plays a role in car insurance costs. In Raleigh, the cheapest ZIP codes for car insurance are 27607, 27606 and 27605. The most expensive are 27604, 27601 and 27609. See the tables below for Raleigh’s cheapest and most expensive ZIP codes for car insurance. 

Cheapest annual car insurance rates in Raleigh, by ZIP code 

ZIP codeAverage annual rate for full coverage

Most expensive annual car insurance rates in Raleigh, by ZIP code 

ZIP codeAverage annual rate for full coverage

Our recommendations: Car insurance for drivers in Raleigh

On average, Raleigh drivers get the cheapest coverage by purchasing a policy with State Farm. But it’s important to consider more than the price when landing on a policy. Don’t forget to review the policy details to confirm you get the coverage you want and need. 

Take time to shop around and gather quotes from several insurance companies. Comparing your options can help you find the best price for your situation. 

Many drivers get the most value from a full coverage insurance policy with liability limits of 100/300/100. But as you accumulate wealth, consider choosing higher liability limits. Robust coverage can give you the peace of mind you need as you navigate Raleigh roads. 

Resources & Methodology


Census Bureau “Raleigh.” Accessed February 2024.

The Charlotte Observer “It takes Charlotte drivers this long to get around.” Accessed February 2024.

City of Raleigh. “Tips for Preparing for Winter Driving.” Accessed February 2024.

Insurance Information Institute. “What determines the price of an auto insurance policy.” Accessed January 2024.

North Carolina Department of Transportation. “Insurance Requirements.” Accessed February 2024. 

Raleigh Municipal Code. “Chapter 2.” Accessed February 2024. 


In 2024, commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.

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Sarah Sharkey
Contributing Researcher


Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.