Average cost of car insurance in North Carolina for 2021

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The average cost of car insurance in North Carolina is $1,325 per year for full coverage, or about $110 per month, according to Bankrate’s 2021 study of full coverage rates from Quadrant Information Services. This figure was determined after reviewing average premiums in 707 North Carolina ZIP codes.

North Carolina auto insurance rates are slightly lower than the national average. However, understanding the average cost of car insurance in your area may help you make more educated decisions about your coverage and potentially find savings. Bankrate analyzed average North Carolina car insurance rates by city, company, age, credit score, driving record and vehicle type to help you determine if your policy is competitively priced based on your situation.

How much is car insurance in North Carolina?

North Carolina car insurance rates are below the national average of $1,674, at an average of $1,325 for full coverage car insurance per year. However, your premiums will likely differ. Although the state you live in can be one of the biggest contributing factors to the cost of vehicle coverage, your premiums are also dependent on your city, company, age and other rating factors.

North Carolina car insurance rates

Average annual minimum coverage premium Average annual full coverage premium
$413 $1,325

North Carolina car insurance rates by city

Your location within North Carolina can have a large impact on how much you pay for car insurance. 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.

City Average annual full coverage premium % difference from North Carolina
Charlotte $1,494 13%
Raleigh $1,286 -3%
Greensboro $1,285 -3%
Durham $1,263 -5%
Winston-Salem $1,182 -11%
Fayetteville $1,513 14%
Cary $1,165 -12%
Wilmington $1,277 -4%
High Point $1,271 -4%
Asheville $1,139 -14%

North Carolina car insurance rates by 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. Of the biggest companies in North Carolina by market share, Bankrate’s review of rates found that Geico sells the cheapest full coverage car insurance in North Carolina, followed by State Farm.

Car insurance company Average annual full coverage premium
Allstate $1,633
AmTrust Financial $1,372
Erie $1,125
Geico $835
Nationwide $1,374
North Carolina Farm Bureau $1,107
Penn National $1,333
Progressive $1,630
State Farm $958

Cost of living in North Carolina and car insurance

When shopping for the best car insurance rates in North Carolina, it is important to factor in your other expenses so that you are looking at your total living costs. The graph below shows the average annual cost of living in North Carolina, including the average cost of car insurance. Use this graph as a guide to help determine your overall expenses so that you can decide what insurance rates fit in your budget.

North Carolina car insurance rates by age

Car insurance premiums typically drop with age. 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.

Age Average annual full coverage premium in North Carolina
Age 16* $1,765
Age 18* $2,946
Age 20* $1,656
Age 25 $1,481
Age 30 $1,435
Age 40 $1,325
Age 50 $1,385
Age 60 $1,341
Age 70 $1,396

*16-year-old calculated on parent’s policy disclosure; 18- and 20-year-old are renters

North Carolina car insurance rates by gender

While most states use gender as a rating factor, North Carolina does not. In the Tarheel State, your gender will not affect how much you pay for car insurance.

North Carolina car insurance by credit score

In some states, such as North Carolina, your credit rating can affect your car insurance premium. Drivers with lower credit scores are statistically more likely to file claims, so car insurance companies generally charge higher premiums to make up for that risk.

Average annual full coverage rate by credit score

Poor Average Good Excellent
National average $3,873 $1,865 $1,674 $1,487
North Carolina $1,758 $1,451 $1,358 $1,352

North Carolina car insurance rates by driving record

Safe drivers usually enjoy the cheapest car insurance. A DUI (driving under the influence) conviction has the most expensive impact on your premiums in North Carolina, although a single speeding ticket or an accident are also significant. 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.

Driving incident Average annual full coverage premium in North Carolina % increase of average annual premium
Clean driving record $1,325
Speeding ticket $2,054 55%
Accident $1,933 46%
DUI $5,564 320%

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.

Vehicle Average annual full coverage premium
Toyota Camry $1,325
Ford F-150 $1,068
Honda Odyssey $1,068

Frequently asked questions

What is the average cost of minimum coverage in North Carolina?

North Carolina’s average minimum coverage premium is $413 per year. North Carolina’s minimum coverage limits are as follows:

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
  • $30,000 uninsured motorist bodily injury liability per person
  • $60,000 uninsured motorist bodily injury liability per accident
  • $25,000 uninsured motorist property damage liability per accident
  • $30,000 underinsured motorist bodily injury liability per person
  • $60,000 underinsured motorist bodily injury liability per accident

You may also use a bond, $85,000 deposit with the state treasurer or a certificate of self insurance (only if more than 25 cars registered) to satisfy the state’s financial responsibility law.

While minimum coverage is generally one of the cheapest levels of car insurance, most insurance agents advise that you purchase higher limits for more financial protection.

What is the cheapest car insurance company in North Carolina?

The cheapest car insurance in North Carolina depends on a number of factors that are unique to each driver, although based on our review of quoted annual premiums, the cheapest North Carolina car insurer we found is Geico. Car insurance providers base insurance rates on several factors, such as the make and model of your car, where you live, your age, driver record and credit score. Getting quotes from several providers could help you find the lowest price for your situation.

How much is car insurance in North Carolina per month?

North Carolina drivers pay an average of $1,325 per year, or about $110 per month, for full coverage. For minimum coverage, the average annual cost is $413, which makes the average monthly premium about $34. Your rate will vary based on your individual rating factors.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 2019 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. For teens, rates were determined by adding a 16- or 17-year-old teen to a 40-year-old married couple’s policy. The rates displayed reflect the added cost to the parents’ policy. Based on quoted annual premiums, it does not appear Hawaii uses age as a contributing factor.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, Pennsylvania.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: California, Hawaii, Massachusetts, Michigan, Washington.

Incident: 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
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