Average cost of car insurance in North Carolina in 2023

How much is car insurance in North Carolina?

So, how much is car insurance in North Carolina? In 2023, the average North Carolina car insurance cost is $1,446 annually for full coverage and $432 annually for state minimum coverage limits. Both these rates are well below the national average car insurance rate of $2,014 per year for full coverage and $622 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 likely 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. A higher cost of medical care may increase bodily injury liability coverage premiums, and higher costs for vehicle repairs and labor may increase property damage liability, comprehensive and collision coverage premiums. Additionally, larger cities tend to have more traffic, which could lead to a higher likelihood of accidents. For example, Fayetteville and Durham’s average annual full coverage premiums are slightly higher than the state average.

Average car insurance costs by age in North Carolina

Car insurance rates vary by age in most states, including North Carolina, with younger drivers usually paying more for coverage due to a higher likelihood of accidents and subsequent claims. Teen drivers typically face the highest insurance rates, as illustrated below, due to their lack of driving experience. Premiums generally decrease with age but may begin to increase again when drivers reach their senior years. At some ages, younger drivers may be included on their parents’ policy or may be on their own policy. In some states, male drivers typically see higher average rates than female drivers, but North Carolina does not allow the use of gender as an insurance rating factor.

*16-year-old calculated on parents' policy with discounts applied; 18- and 20-year-old are renters on their own policy.

Cost considerations for young drivers in North Carolina

If a young driver is still living in their parents’ household, it’s usually cheaper to keep that driver listed on their parents’ policy. You can see from the rates below that the newest drivers, those who are 16- and 17-years-old, pay the highest average rates. Premiums may start to lower even after just one year of driving experience, provided the young driver maintains a clean driving record.

*16- and 17-year-old drivers must be on their parents’ policy.

How does driving record impact the cost of car insurance in North Carolina?

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, may all impact your rates. A DUI (driving under the influence) conviction has the most significant impact on your premiums in North Carolina, increasing average premiums by an astounding 311 percent. The table below provides an overview of the average annual premium increase for a North Carolina policyholder with a single speeding ticket, accident or DUI on their record.

Car insurance rates in North Carolina by credit score

Another major factor that may contribute to your insurance rate is your credit score. In most states, major auto carriers will use credit-based insurance scores as one of your insurance rating factors, with drivers with higher credit scores paying lower premiums, on average.

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, fewer safety features or more expensive repair costs may cost more to insure. For example, a BMW 330i costs about 20 percent more than the state average to insure for full coverage, while a Ford F-150 and Honda Odyssey cost about 17 percent less than the state average.

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 you might be able to get a lower premium.

• Shop around: Different companies weigh rating factors differently, so one may be significantly cheaper than another based on your individual situation. Comparing quotes may indicate which company will offer you the cheapest rates. 
• 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, on average. Practicing safe driving habits may help you avoid these costly surcharges.
• Look for discounts: In addition to bundling, most car insurance companies offer at least a handful of discounts for potential premium savings. Some of the most common include multi-policy, paperless billing and claims-free. 

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.

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Frequently asked questions