In North Carolina, the average annual cost for full coverage car insurance is $1,177, while minimum coverage is $567. These rates are $119 and $28 less, respectively, than the national average, making car insurance in the Tar Heel State more affordable.
Average Cost of Car Insurance in North Carolina
Updated: January 14, 2025
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Key Takeaways
Drivers in North Carolina pay 9% less for full coverage car insurance compared to the national average.
For minimum coverage, drivers in North Carolina pay 5% less than the national average.
The average cost of full coverage in the Tar Heel State is $1,177, while minimum coverage costs $567, making it one of the more affordable states for car insurance.
How Much Is Car Insurance in North Carolina?
| Full Coverage | $1,177 | $1,296 | -9% |
| State Minimum Liability Only | $567 | $595 | -5% |
Read More: Average Cost of Car Insurance
North Carolina Car Insurance Rates by Coverage Level
In the Tar Heel State, the coverage level you pick for your car insurance changes how much you pay. If you go for higher liability limits or full coverage, your rate goes up, but choosing a bigger deductible can cut your premium. Here's what North Carolina drivers usually pay for state minimum and full coverage with different deductibles and limits.
| 300/500/300 | Full Coverage | $1,388 | $1,500 |
| 300/500/300 | Full Coverage | $1,335 | $500 |
| 300/500/300 | Full Coverage | $1,296 | $1,000 |
| 100/300/100 | Full Coverage | $1,269 | $1,500 |
| 100/300/100 | Full Coverage | $1,216 | $0 |
| 100/300/100 | Full Coverage | $1,177 | $1,000 |
| State Minimum | Full Coverage | $1,166 | $1,500 |
| State Minimum | Full Coverage | $1,113 | $500 |
| State Minimum | Full Coverage | $1,074 | $1,000 |
| 300/500/300 | Liability Only | $923 | $0 |
| 100/300/100 | Liability Only | $722 | $0 |
| State Minimum | Liability Only | $567 | $0 |
Read More: Liability vs. Full Coverage Car Insurance
Average North Carolina Car Insurance Cost by City
Car insurance rates in Tar Heel cities can change due to crime, traffic, and weather. For example, Cary enjoys an affordable full coverage rate of $821, while Charlotte and Fayetteville have higher rates at $1,088 and $1,103, respectively. Compare your city's rates with North Carolina's average in the table below.
| Cary | $821 | -57% | $431 | -61% |
| Charlotte | $1,088 | -43% | $583 | -47% |
| Durham | $816 | -57% | $426 | -61% |
| Fayetteville | $1,103 | -42% | $557 | -49% |
| Greensboro | $895 | -53% | $456 | -58% |
| High Point | $807 | -58% | $413 | -62% |
| Raleigh | $928 | -51% | $491 | -55% |
| Wilmington | $902 | -53% | $489 | -55% |
| Winston-Salem | $826 | -57% | $415 | -62% |
Average North Carolina Car Insurance Cost by Age
In North Carolina, age plays a big role in car insurance costs, with younger drivers seen as higher risk and paying more. On average, 25-year-olds spend 6% more for minimum coverage and 6% more for full coverage than 40-year-olds, and they pay 3% and 6% more, respectively, compared to 65-year-olds.
| 25 | $1,252 | $598 |
| 40 | $1,177 | $567 |
| 65 | $1,180 | $580 |
While age often affects car insurance prices, states like California, Massachusetts, and Hawaii don't consider it. This means more consistent costs for drivers of all ages.
Car Insurance Costs in North Carolina for Young Drivers by Gender
In North Carolina, young drivers face higher car insurance costs due to the increased risk of accidents. On average, drivers aged 18 to 25 pay $1,249 annually when added to a family policy, which is slightly less than the $1266 they would pay for an individual policy, marking a 1% increase.
Gender does not play a role in car insurance rates for young drivers in the Tar Heel State. Both male and female drivers aged 18 to 25 typically pay $1,266 per year. Below, you'll find the average car insurance costs for individual and family policies for young drivers, detailed by gender.
Car Insurance Costs in North Carolina for Young Women
An 18-year-old woman in North Carolina can be added to a family car insurance policy for an average of $1,728. Choosing an individual policy instead would increase her rate by approximately 18%, costing around $2,105.
| 18 | $2,105 | $1,728 | -18% |
| 19 | $1,303 | $1,325 | 2% |
| 20 | $1,278 | $1,302 | 2% |
| 21 | $1,136 | $1,150 | 1% |
| 22 | $1,122 | $1,167 | 4% |
| 23 | $1,102 | $1,146 | 4% |
| 24 | $1,086 | $1,130 | 4% |
| 25 | $999 | $1,039 | 4% |
Car Insurance Costs in North Carolina for Young Men
An 18-year-old man pays an average of $2,105 for full coverage car insurance in North Carolina. By joining a family policy, the cost drops to $1,728, saving nearly 18% annually.
| 18 | $2,105 | $1,728 | -18% |
| 19 | $1,303 | $1,325 | 2% |
| 20 | $1,278 | $1,302 | 2% |
| 21 | $1,136 | $1,150 | 1% |
| 22 | $1,122 | $1,167 | 4% |
| 23 | $1,102 | $1,146 | 4% |
| 24 | $1,086 | $1,130 | 4% |
| 25 | $999 | $1,039 | 4% |
Average North Carolina Car Insurance Cost by Driving Record
In North Carolina, your car insurance could cost between $826 to $4,610 after traffic offenses, compared to the average. Below, see how much average rates for at-fault accidents, speeding tickets, and DUIs differ from a clean driving record.
| At-Fault Accident | $1,719 | -10% | $826 | -25% |
| DUI | $4,610 | 142% | $2,160 | 97% |
| Ticket | $1,832 | -4% | $884 | -19% |
Read More: [High-Risk Car Insurance in North Carolina](https://www.moneygeek.com/insurance/auto/high-risk-car-insurance-north carolina/)
Average North Carolina Car Insurance Cost by Credit Score
Your credit-based insurance score matters a lot when you buy car insurance in the Tar Heel State. Drivers with excellent credit may pay about $1,058 a year for full coverage, while people with poor credit could see rates around $1,831. Knowing your score can help you budget better for your car insurance.
| Excellent | $1,058 | -45% | $408 | -63% |
| Good | $1,178 | -38% | $455 | -58% |
| Fair | $1,348 | -29% | $518 | -53% |
| Below Fair | $1,540 | -19% | $598 | -45% |
| Poor | $1,831 | -4% | $701 | -36% |
CREDIT SCORES AND YOUR PREMIUM
A credit score between 670 and 739 indicates financial trustworthiness, potentially reducing insurance costs for drivers in North Carolina. In states like Hawaii, Massachusetts, Maryland, California, and Michigan, credit-based insurance scores are not used for pricing. Meanwhile, in North Carolina, Oregon, Washington, Utah, and Nevada, credit scores are considered only under certain conditions.
Average North Carolina Car Insurance Cost by Company
Car insurance costs can change a lot from one company to another. In North Carolina, North Carolina Farm Bureau has the cheapest average yearly full coverage at $531. Kemper's prices are highest, costing 34% more than the state's average.
| North Carolina Farm Bureau | $531 | $265 |
| Erie | $631 | $300 |
| State Farm | $714 | $345 |
| Progressive | $820 | $500 |
| Nationwide | $1,140 | $518 |
| National General | $1,345 | $612 |
| GEICO | $1,376 | $689 |
| Allstate | $1,933 | $881 |
| Kemper | $2,105 | $993 |
Read More: [Cheapest Car Insurance Companies in North Carolina](https://www.moneygeek.com/insurance/auto/cheapest-car-insurance-north carolina/)
Average North Carolina Car Insurance Cost by Vehicle Age
In North Carolina, newer cars often have higher insurance premiums. They can cost around $1,304 yearly for full coverage, compared to $925 for a 10-year-old model. This is due to their value and the cost of repairs and theft risks.
| 10-Year-Old Vehicle | $925 | $455 |
| New Model Vehicle | $1,304 | $448 |
ACTUAL CASH VALUE
The actual cash value (ACV) is your car's worth just before damage, as assessed by your insurer. In a collision or comprehensive claim, this value helps determine the maximum amount for repairs or replacement, minus any deductible. This calculation ensures your claim aligns with the car's fair market value.
Read More: Used Car Insurance
North Carolina Car Insurance Rates Explained
In North Carolina, auto insurance rates may be higher or lower than the national average. Clarify this by examining key factors like your credit-based insurance score and the impact on both full coverage and state minimum plans.
Is Car Insurance Expensive in North Carolina?
Car insurance in North Carolina is affordable, with an average full coverage cost of $98 per month. It's about 9% cheaper than the national average.
Read More: Why Car Insurance is So Expensive
Car Insurance Costs in North Carolina vs. National Average
National Average Cost
Full Coverage Car Insurance
$108
North Carolina Average Cost
Full Coverage Car Insurance
$98NC Car Insurance Is Cheap:$10 saved
This is 9% less expensive.
Why Are Car Insurance Rates Expensive in North Carolina?
Car insurance in North Carolina can be pricey. Busy cities and bad weather often lead to more accidents and insurance claims. Plus, the state's strict insurance rules can drive up prices. It's a mix that makes for costly coverage.
Read More: Car Insurance Rates by State
Estimating Your Car Insurance Costs in North Carolina
While average rates give a broad picture of car insurance costs in the Tar Heel State, your price will be tailored to you. Key factors for your estimate include your driving history, car model, and the amount of coverage you choose.
Driving Record
Keeping a spotless driving record without traffic violations or accidents can significantly reduce your car insurance premiums.
Age and Gender
Younger drivers typically pay more for insurance. Rates may vary by gender, so shop around for the best rates applicable to your demographic.
Credit History
A higher credit score can lead to lower insurance costs. Work on paying bills on time and reducing debt to improve your score.
Vehicle Type
Insurance costs can be lower for cars that are less expensive to repair or replace. Consider safety features and theft rates when selecting a vehicle.
Location Within North Carolina
Living in areas with lower crime rates and less traffic can lead to more affordable car insurance rates in North Carolina.
Coverage Level
Opt for the level of coverage that meets your needs without overinsuring. Higher deductibles can also decrease your premium.
Marital Status
Married drivers may receive lower rates due to perceived stability. Inform your insurer if you get married to potentially lower your rates.
State Law
North Carolina has specific insurance requirements. Ensure you have the mandatory coverage and understand how laws can affect your rates.
Read More: North Carolina Car Insurance Calculator
Minimum Car Insurance in North Carolina
In North Carolina, the average annual rate for state minimum car insurance is $567, which is less than the national average of $595. Choosing state minimum liability coverage can be more wallet-friendly compared to full coverage, due to lower liability limits. Below is a table detailing the minimum requirements for car insurance in the state.
North Carolina Car Insurance Requirements
In North Carolina, drivers must have minimum coverage auto insurance. This includes $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $25,000 for property damage per accident. You also need uninsured/underinsured motorist coverage at the same limits.
Liability Limits | Description |
|---|---|
$30,000 for bodily injury liability per person. | In North Carolina, drivers are required to have at least $30,000 in bodily injury liability per person to cover medical expenses if they cause an accident. |
$60,000 for bodily injury liability per accident. | The state mandates $60,000 for bodily injury liability per accident, ensuring coverage for multiple injured parties in a single incident. |
$25,000 for property damage liability per accident. | Property damage liability of $25,000 per accident is required to cover damages to another person's property, like their vehicle or home. |
$30,000 uninsured motorist bodily injury per person. | Uninsured motorist coverage of $30,000 per person protects you if you're hit by a driver without insurance. |
$60,000 uninsured motorist bodily injury per accident. | With $60,000 uninsured motorist coverage per accident, you're safeguarded against uninsured drivers in multi-injury incidents. |
$25,000 uninsured/Underinsured property damage coverage. | North Carolina requires $25,000 for uninsured/underinsured property damage coverage to protect your assets if an at-fault driver lacks sufficient insurance. |
Read More: [State Minimum Car Insurance Requirements in North Carolina](https://www.moneygeek.com/insurance/auto/state-laws-minimum-requirements-north carolina/)
How to Lower Car Insurance Costs in North Carolina
To save on car insurance in the Tar Heel State, compare rates, hike your deductible and snag discounts.
- 1
Compare Multiple Quotes
Researching multiple insurance providers can help you find affordable car insurance in the Garden State, potentially saving you hundreds of dollars annually.
- 2
Lower Your Risk Profile
A better credit score or clean driving record without at-fault accidents or moving violations can significantly lower insurance premiums because insurers view you as a lower risk.
- 3
Adjust Your Coverage
Reviewing coverage needs can ensure you're paying only for the necessary protection. For example, increasing deductibles or opting for usage-based policies can lower costs for some drivers.
- 4
Ask for Discounts
Inquire about discounts for safe driving, good grades, anti-theft devices, completing a state-approved defensive driving course, and bundling policies, leading to potentially lower premiums.
- 5
Consider the Car You Drive
Driving a vehicle with high safety ratings that's less expensive to insure can result in lower insurance costs in the state known for its shorelines.
Read More: How to Reduce Your Car Insurance Costs
Auto Insurance Rates in North Carolina: Bottom Line
In North Carolina, a full coverage car insurance policy averages at $1,177 yearly, making it more affordable than the national average. Factors like driving history, car model and coverage amount can change your rate. Compared to other states, residents find car insurance reasonably priced here.
North Carolina Car Insurance Rates: FAQ
Discover what affects car insurance costs in North Carolina. Learn tips to find affordable rates without compromising coverage.
What are the minimum car insurance requirements in North Carolina?
North Carolina's minimum car insurance requirements include Bodily Injury Liability of $30,000 per person and $60,000 per accident, alongside Property Damage Liability of $25,000 per accident. Additionally, Uninsured/Underinsured Motorist coverage is required, matching the Bodily Injury Liability at $30,000 per person and $60,000 per accident, with Property Damage coverage at $25,000. Personal Injury Protection and Medical Payments are not mandated in North Carolina. It's important to note that these are the minimum requirements, and one might consider higher coverage for more protection.
What is the average cost of full coverage and minimum coverage auto insurance in North Carolina?
In North Carolina, the average annual cost for full coverage auto insurance is $1,177 while state minimum coverage averages at $567. These rates are below the national averages, ensuring more economical insurance options for residents.
What is the average cost of car insurance for a 25-year-old in North Carolina?
In North Carolina, a 25-year-old can expect to pay around $1,252 for full coverage and about $598 for state minimum car insurance annually. These rates are slightly below the state averages.
What are the cheapest car insurance companies in North Carolina?
In North Carolina, the most affordable car insurance provider for full coverage is North Carolina Farm Bureau, with an annual premium of $531, or $44 monthly. Their minimum coverage comes in at $265 annually, or $22 per month. While opting for the most affordable car insurance in North Carolina might be tempting, it's crucial to choose a plan that adequately covers your needs to prevent significant financial strain from potential accidents or damages.
North Carolina Auto Insurance Cost: How We Determine Average Rates
We used a sample driver profile with the following attributes to determine average car insurance rates in North Carolina:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
We modified this driver profile by age, vehicle, credit score and driving record to determine averages for different driver profiles and needs.
Coverage Levels and Deductibles
Unless otherwise noted, average rates on this page are for a full coverage policy with comprehensive and collision coverage, a $1,000 deductible for each and the following liability limits (100/300/100):
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability per accident
When minimum coverage is specified, we used the following minimum liability-only limits as mandated by North Carolina:
- $30,000 for bodily injury liability per person.
- $60,000 for bodily injury liability per accident.
- $25,000 for property damage liability per accident.
- $30,000 uninsured motorist bodily injury per person
- $60,000 uninsured motorist bodily injury per accident
- $25,000 uninsured/Underinsured property damage coverage
Learn more about MoneyGeek's car insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.