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Average cost of car insurance in North Carolina in 2022

Updated Sep 22, 2022
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The average cost of car insurance in North Carolina is $1,392 per year for full coverage and $431 per year for minimum coverage, according to Bankrate’s 2022 study of quoted annual premiums from Quadrant Information Services. North Carolina drivers pay less than the national average for both full coverage and minimum coverage, despite having some busy roadways and high minimum limits. Our research into the average cost of coverage in North Carolina could help you know if your rate is competitive.

How much does car insurance cost in North Carolina?

So, how much is car insurance in North Carolina? In 2022, the average North Carolina car insurance cost is $1,392 annually for full coverage and $431 annually for state minimum coverage limits. Both these rates are well below the national average car insurance rate of $1,771 per year for full coverage and $545 per year for minimum coverage. To determine these rates, we turned to Quadrant Information Services and reviewed average rates for the largest companies in the state by market share.

North Carolina car insurance rates by city

You know that car insurance rates vary by state, but did you know they also vary by city? Larger cities tend to have higher insurance costs. The higher cost of medical care can increase bodily injury liability coverage premiums, and higher costs for vehicle repairs and labor can increase property damage liability, comprehensive and collision coverage premiums. Additionally, larger cities tend to have more traffic, which can lead to a higher likelihood of accidents. For example, Charlotte’s average annual full coverage premium is 12% higher than the state average.

City Average annual minimum coverage premium Average annual full coverage premium
Charlotte $539 $1,553
Raleigh $458 $1,359
Greensboro $449 $1,392
Durham $437 $1,369
Winston-Salem $401 $1,262
Fayetteville $521 $1,591
Cary $409 $1,227
Wilmington $468 $1,345
High Point $455 $1,414
Concord $474 $1,420

North Carolina car insurance rates by insurance company

An important factor affecting car insurance rates in the Tarheel State is the carrier you choose. Each car insurance company uses its own rating system to determine your premium, so the same coverage can be priced differently by different carriers. This is why shopping around and comparing car insurance quotes from several companies could help you find the cheapest car insurance in North Carolina for your needs.

Car insurance company Average annual minimum coverage premium Average annual full coverage premium
Allstate $439 $1,597
Erie $376 $1,105
Geico $329 $910
Kemper $462 $1,414
Nationwide $328 $1,197
Carolina Farm Bureau $336 $1,047
Penn National $440 $1,399
Progressive $530 $1,693
State Farm $318 $966
Travelers $463 $1,471

North Carolina car insurance rates by age

Car insurance rates vary by age, with younger drivers usually paying more for coverage due to a higher likelihood of accidents and a higher likelihood of filing claims, as they tend to be less financially established. Teen drivers typically face the highest vehicle insurance rates, as illustrated below, due to their lack of driving experience. Premiums can begin to increase again when drivers reach their senior years, because aging can affect driving ability and potentially increase the likelihood of claims. At some ages, younger drivers may be included on their parents’ policy or may be on their own policy. We’ve included both rates to illustrate the difference.

Average cost of car insurance for drivers on their parents’ policy

If a younger driver is still living in their parents’ household, it’s usually cheaper to keep that driver listed on the parents’ policy. Typically, teenage drivers on their parents’ insurance policy are less likely to file claims for minor incidents. You can see from the rates below that the newest drivers, those who are 16- and 17-years old, pay the highest rates. Premiums start to lower even after just one year of driving experience.

Age Average annual premium for full coverage in North Carolina
Age 16 $3,175
Age 17 $2,419
Age 18 $2,222
Age 19 $1,608
Age 20 $1,585

Average cost of car insurance by age for drivers on their own policy

For an 18-year-old on their own policy, full coverage costs 34% more than it would if the teen were included on the parents’ policy. However, once a child moves out of their parents’ house and establishes their own household, they’ll need their own insurance. While younger drivers on their own may pay heft premiums, rates drop significantly by age 25 and continue to trend downward.

Age Average annual premium for full coverage in North Carolina
Age 18 $2,983
Age 25 $1,471
Age 30 $1,417
Age 40 $1,392
Age 60 $1,332

North Carolina car insurance rates by driving record

Safe drivers usually enjoy the cheapest car insurance. Policyholders with driving incidents on their records may be viewed as high-risk drivers, which often results in higher premiums. The severity of your infraction, as well as the company you are with and how many incidents you have, will all impact your price. Even though it’s pricey, if you have a history of driving incidents, you may want to strongly consider full coverage insurance, which will provide financial support for damage to your own vehicle as well as damage that you cause. A DUI (driving under the influence) conviction has the most expensive impact on your premiums in North Carolina, increasing premiums by an astounding 310% on average.

Driving incident Average annual full coverage premium % increase of state average annual premium
Speeding ticket conviction $2,089 50%
At-fault accident $1,988 43%
DUI $5,714 310%

North Carolina car insurance rates by vehicle type

The type of vehicle you drive is another impacting rating factor for North Carolina car insurance. Vehicles that have a higher statistical likelihood of an accident, have fewer safety features or have more expensive repairs costs may cost more to insure. For example, a BMW 330 costs about 24% more than the state average to insure for full coverage, while both a Ford F-50 and Honda Odyssey cost about 19% less than the state average.

Vehicle type Average annual full coverage premium
BMW 330i $1,720
Ford-150 $1,122
Honda Odyssey $1,122
Toyota Prius $1,608

How to save on car insurance in North Carolina

Generally, North Carolina car insurance is cheaper than comparable coverage in many other states. However, there are still ways to get a lower premium.

  • Shop around: Because different companies charge different rates, shopping around and comparing quotes might help you find the lowest price for the coverage you need.
  • Bundle your policies: Bundling your auto and home insurance just means buying both policies from the same company. This is generally one of the most significant discounts you can get.
  • Maintain a clean driving record: Drivers with incidents like tickets, at-fault accidents and DUI convictions pay quite a bit more for car insurance coverage. Practicing safe driving habits could help you avoid these costly surcharges.
  • Ask for a prayer for judgment: If you do incur a traffic offense, you could ask for a prayer for judgment, which means you won’t be penalized even though you are guilty. There are limits to how often this can be done, though, and limits to what offenses it applies to.

Keep in mind that North Carolina prohibits many common discounts, like good student discounts. To ensure you’re taking advantage of the discounts that are available, talk to your agent or a representative from your company.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Edited by Insurance Editor
Reviewed by Senior wealth manager, LourdMurray