In our research, we found that average car insurance in North Carolina (NC) is $438 per year ($37 monthly) for a state minimum and $1, 425 yearly ($119 monthly) for a full coverage policy. This guide to buying car insurance for NC drivers is based on rate data research and expert advice from our veteran staff of insurance analysts and editors.
- How much is average car insurance in North Carolina, NC?
- North Carolina car insurance requirements
- Car Insurance in NC by ZIP Code - Average Rates
- Best car insurance in North Carolina
- Cheap car insurance quotes in NC
- Expert's Recommendation : Getting the best cheap car insurance in NC (North Carolina)
- North Carolina car insurance laws
How much is average car insurance in North Carolina, NC?
The average car insurance rate in North Carolina is $438 a year. That’s $136 less than the nationwide average ($574), making it one of the least expensive states for auto coverage. Here are average car insurance rates for common policy amounts:
- State minimum liability: $37 monthly, $438 yearly
- 50/100/50: $40 monthly, $481 yearly
- 100/300/100 with comprehensive and collision, $500 deductible: $119 monthly, $1, 425 yearly
North Carolina car insurance requirements
The Tar Heel State mandates that drivers carry minimum liability coverage limits of 30/60/25 on their vehicles. That means for accidents that you cause your policy pays out up to $30,000 for those you injure, up to $60,000 per accident, and up to $25,000 for damage you cause to other vehicles and property. You must also buy uninsured motorist bodily injury and uninsured motorist property damage coverage, which helps pay for accidents you’re in with uninsured drivers.
| Minimum bodily injury liability | $30,000/$60,000 |
| Minimum property damage liability | $25,000 |
| Uninsured/underinsured motorist bodily injury | $30,000/$60,000 |
| Uninsured motorist property damage | $25,000 ($100 deductible) |
Car Insurance in NC by ZIP Code - Average Rates
North Carolina Car Insurance Rates by ZIP Code
Many factors affect how much you pay for car insurance and where you live is chief among them. Insurance companies consider the cost and frequency of claims in your neighborhood when calculating your rate, and then adjust it based on other factors such as your age, your driving record, your credit and the type of car you drive. Each insurer uses its own formula. That’s why the cost for the same policy can vary significantly among insurance companies — and why you should compare rates.
Enter your ZIP code, age and desired coverage amount in the tool above and you’ll see the average car insurance rate for your neighborhood, as well as the highest and lowest rate fielded from up to six major carriers. The difference between the highest and lowest rate is what you can potentially save by comparing car insurance quotes.
Best car insurance in North Carolina
CarInsurance.com’s customer review survey asked policyholders to rank major carriers on claims handling, customer service, price and mobile apps/website usefulness.
| Rank | Company | Score |
|---|---|---|
| 1 | The Auto Club Group (ACG) - AAA | 91.89 |
| 2 | Auto Club of Southern California (Auto Club Enterprise Insurance Group) | 90.77 |
| 3 | CSAA Insurance Group | 89.67 |
| 4 | USAA | 88.54 |
| 5 | Mercury | 87.97 |
| 6 | Erie | 87.76 |
| 7 | Metlife | 86.71 |
| 8 | Nationwide | 86.34 |
| 9 | Progressive | 86.02 |
| 10 | Safeco | 85.70 |
| 11 | American Family | 85.47 |
| 12 | Hartford | 85.44 |
| 13 | Allstate | 85.32 |
| 14 | The General | 84.48 |
| 15 | State Farm | 83.60 |
| 16 | Geico | 83.22 |
| 17 | Liberty Mutual | 80.98 |
| 18 | Farmers | 80.24 |
| 19 | Esurance | 79.19 |
| 20 | Travelers | 76.07 |
Cheap car insurance quotes in NC
Geico had the cheapest quotes for North Carolina drivers, based on CarInsurance.com’s data analysis. Below you'll see average annual rates for North Carolina, ranked cheapest to most expensive, for three coverage levels:
- State minimum liability requirements
- Liability limits of $50,000 per person/$100,000 per accident and $50,000 property damage
- Liability of $100,000 per person/$300,000 per accident and $100,000 property damage, with comprehensive and collision at $500 deductible
| Company | State minimum average annual rate | 50/100/50 average annual rate | 100/300/100 average annual rate |
|---|---|---|---|
| Government Employees Ins Co | $288 | $324 | $922 |
| North Carolina Farm Bur Mut Ins Co | $332 | $374 | $1,141 |
| State Farm Mut Auto Ins Co | $370 | $414 | $1,269 |
| Progressive Southeastern Ins Co | $454 | $497 | $1,606 |
| Allied Prop & Cas Ins Co | $507 | $532 | $1,549 |
| Allstate Prop & Cas Ins Co | $678 | $744 | $2,064 |
As you can see, rates vary quite a bit, which is why it pays to compare car insurance quotes at least once a year. Note that these are averages -- your rate will depend on your own driver profile and how that’s reviewed by your insurer.
Who has the cheapest car insurance in North Carolina?
The cheapest car insurance companies in North Carolina for drivers with recent accident claims are Geico and Nationwide, based on CarInsurance.com’s rate analysis. Progressive had the lowest rates for drivers with speeding tickets and for those adding a teen driver to their policy. Geico was cheapest for drivers with bad credit.
Filing an accident claim, getting a speeding ticket, adding a teen driver to your policy or having bad credit are all scenarios that will likely increase your car insurance rates. However, how much more you pay depends on several factors, and your car insurance company is one of those significant factors. Each company assesses risk differently, so that's why the increase will vary among insurers. In North Carolina, you can save the following amounts, on average, by comparing rates, based on our analysis:
- $970 after an accident
- $600 after speeding citation
- $2,000 after adding teen driver
- $450 if have bad credit
Expert's Recommendation : Getting the best cheap car insurance in NC (North Carolina)
Finding cheap car insurance is relatively straight-forward -- you compare quotes for the same amount of coverage and pick the company with the cheapest rates. Finding the best car insurance companies for your particular needs is also fairly simple. You research companies to see how well they match up to what’s most important to you. For instance, those that have excellent customer service, offer the most discounts for your driver profile and that offer services you want, which could include things like roadside assistance, mobile apps or the option of a usage-based policy. Deciding which company has the best cheap car insurance for you just involves mixing these processes together. Here’s how:
- Read customer reviews to see which companies have great customer service
- Check their discount offerings to see how many you qualify for
- Review the types of services they have to be sure what you want is offered, for instance roadside assistance, or rental car reimbursement or mobile apps
- Check to see if they offer the type of coverages you want, for example, vanishing deductibles or accident forgiveness, usage-based car insurance, motorcycle or boat coverage so you can get a bundle discount
- Once you have a list of contenders, you’ll typically see that they vary a bit in regard to what services or discounts they offer, so make a note of that
- Then compare rates for the same amount of coverage and see which one is the most affordable
It may be that even after vetting carriers for what’s important to you, the one with the cheapest rates might not be the best fit if, say, it has lower customer satisfaction ratings than another or has fewer of the services you value most. So, then, you really have to use your judgment on which company has the best-suited service for you for the price.
Best for customer service
- The Auto Club Group - AAA
- USAA
- Auto Club of Southern California
- CSAA Insurance Group
- Safeco
- Hartford
- Nationwide
- Erie
- Allstate
- Mercury
- Metlife
- State Farm
- Geico
- Progressive
- American Family
- Liberty Mutual
- The General
- Farmers
- Esurance
- Travelers
North Carolina car insurance laws
Contributory negligence: North Carolina has a contributory negligence provision in its torts law; a driver cannot recover damages if found at fault in an accident by even a small percentage. More than in most states, North Carolina residents should carefully consider how easily they might afford to replace a car before dropping collision coverage, which would pay for repairs no matter who is at fault.
DL-123 form for proof of insurance: The state requires drivers to demonstrate that they have a liability insurance policy by filing a DL-123 form. Liability insurance is the minimum amount of auto insurance you must have to drive legally.
North Carolina law requires that a DL-123 form be filled out and signed by your car insurance company before you can receive your license and sometimes for other reasons, such as after a reinstatement of a license after a DUI suspension. Certification of liability insurance coverage must be submitted to the DMV and it must be from an insurance company licensed to do business in the state.
Safe driver incentive plan (SDIP): North Carolina has a set list of SDIP points that auto insurance companies must assign drivers who are convicted of moving traffic violations or at-fault accidents. The more insurance points you have, the more you'll pay in surcharges. The points range from one to 12, with one point equaling a surcharge of 30% and a driver with 12 points receiving a 340% increase in rates.
North Carolina is the only state that assigns the "insurance points" instead of the insurer doing so. That means drivers in North Carolina can view how points are assigned online, compared to other states where you would have to request a surcharge schedule from your insurance company.
Review the North Carolina SDIP points table on the state's Department of Insurance site. Get PDF Here.
How long to settle a claim?: Car insurance companies in North Carolina have 30 days after receiving a claim to acknowledge it by either: making payment on the claim, making a settlement offer, denying the claim, or informing the claimant that there is an ongoing investigation of the claim. Loss and claim payments by auto insurers are to be mailed within 10 business days after the claim is settled.
Prayer for Judgment: Under this unique state law, prayer for judgment allows a person to plea neither innocence nor guilt to a judge. As it relates to driving, this means drivers may avoid having a citation affect their driving record, assuming they aren't cited for the same offense in a five-year period. Read more on our prayer for judgment page.
Uninsured motorist penalties in North Carolina: You may have to pay up to $1,000 in fines, your license and registration may be suspended and your plates confiscated if you are ticketed for driving without insurance in North Carolina. You may also end up with 3 points on your driver's license. Penalties for an insurance lapse are not quite as harsh.
Strict speeding laws: There are severe speeding penalties compared to other states. If cited for driving 15 mph over the 55 mph speed limit, your license is suspended for 30 days. A second offense in 12 months gets you a 60-day suspension.
No grace period: North Carolina does not have a grace period for cancelled insurance policies.