Drivers in North Carolina benefit from some of the cheapest auto insurance in the country. While the average annual cost of car insurance in the U.S. is $565 for minimum coverage, and $1,674 per year for a full coverage policy, North Carolina drivers only pay $413 and $1,325 a year respectively. This is mainly because the state legislature monitors North Carolina auto insurance premiums, capping rates so providers can’t get carried away with inflation.
It means that there is plenty of cheap auto insurance in North Carolina, but which provider is right for you? Bankrate provides a selection of top providers who offer competitive rates, on average, in North Carolina to help you find the right fit.
The cheapest car insurance in North Carolina
There are several options for cheap auto insurance in the state, but based on average quoted rates from Quadrant information services, the cheapest car insurance in North Carolina belongs to Geico, State Farm and Erie Insurance.
| Insurance company | Average minimum coverage | Average full coverage |
|---|---|---|
| Erie | $365 | $1,125 |
| Geico | $260 | $835 |
| Nationwide | $368 | $1,374 |
| NC Farm Bureau | $374 | $1,107 |
| State Farm | $292 | $958 |
Erie
Erie Insurance offers North Carolina drivers cheap car insurance through a rate lock on policies, so you don’t have to worry about inflation causing your insurance rates to increase each year. There is also a vanishing deductible option that you can add with Erie Auto Plus for even more protection.
Erie is a smaller company, serving just 12 states and Washington, D.C., so you don’t have to worry about fighting for time with the company’s customer support representatives. Perhaps, that’s why customer satisfaction scores fall higher on the J.D. Power scale. However, its mobile tools could use some work. Erie isn’t the most technologically advanced company, only allowing policyholders to pay bills online and file glass-related claims. You will need to work with an agent to make changes to your policy or file other types of claims for everything else.
GEICO
GEICO has several attractive options, in addition to offering cheap auto insurance in North Carolina. Policyholders benefit from a convenient mobile app designed to help you manage your policy and track claims on the go, plus there are several branches in the state where you can meet with a GEICO insurance agent in-person.
You can also receive a military discount or special discounts like vehicle safety, good driver and multi-policy if you’re eligible. If you drive for services like Uber or Lyft, GEICO can cover you for rideshare coverage.
Nationwide
Nationwide has a high number of local agents available to help with the finer points of your policy management, as well as expanded coverage options for your policy. Nationwide is one of the more flexible providers for drivers with bad credit, with thoughtful safeguards like Accident Forgiveness® and a Vanishing Deductible® worth up to $500 off your annual premium. There are also extra protections for your car insurance policy, such as towing and labor coverage, rental car insurance, roadside assistance, gap insurance and a total loss deductible waiver.
Nationwide earns an A+ (Superior) rating from AM Best for financial stability, which means you can count on the company for reliable claims processing. The mobile tools to help you manage your policy and file claims are excellent, too.
North Carolina Farm Bureau
You must be a member to benefit from North Carolina Farm Bureau’s rates, but it only costs $25 a year to join. Once you become a member, you have access to a ton of great benefits, including some of the best car insurance rates in North Carolina. Farm Bureau offers auto insurance, homeowners insurance and renters insurance, in addition to life insurance, health insurance and even insurance for your business or farm.
Local agents are available to help and if there’s ever a need to file claims, you can work with your agent directly or go online for easy filing.
State Farm
State Farm is top-rated for customer service from J.D. Power and also holds stellar ratings from AM Best with an A++ (Superior) rating. State Farm offers an abundance of online resources with over 19,000 agents nationwide and 24/7 roadside assistance coverage. The State Farm Select Service program offers in-network auto repair shops for vehicle estimates and repairs. If you need it, State Farm offers expanded coverage, including rental and rideshare insurance with the option for classic and antique cars insurance.
To save even more, explore the types of car insurance discounts that State Farm has to offer. There are exclusive savings programs available, including its Drive Safe & SaveTM, Steer Clear®, and good student reward programs, which can save you up to 25% and more.
Affordable coverage for North Carolina drivers
North Carolina auto insurance laws mandate the following amount of minimum car insurance for North Carolina drivers:
- $30,000 – Bodily injury per person
- $60,000 – Bodily injury per accident
- $25,000 – Property damage per accident
Drivers are also required to maintain minimum coverage for uninsured and underinsured motorist coverage. This will protect you and pay for any damages that may come from an accident with a driver who does not have adequate car insurance.
How to get cheap car insurance in North Carolina
A company that is the cheapest with one person may not be the most affordable for someone else. That is why it is so important to shop your options to find the right car insurance for you.
Before you purchase a new North Carolina auto insurance policy, consider these tips to find the right insurance policy.
Consider vehicle features.
The kind of car you drive has an enormous impact on the total cost of your auto insurance. Factors like the year, make and model help insurance providers evaluate how much risk your vehicle poses on the road. An insurance provider will also consider the safety risks for your vehicle, such as possible recalls or high theft rates. If you have extra safety features, like an anti-theft device or safety sensors, you could earn additional discounts.
Raise your deductible.
An easy way to make your payments more affordable is to increase your deductible. While this means that you will have to pay more out of pocket after an accident, you will enjoy lower monthly payments, which can help you if your budget is tight for monthly expenses.
Ask about discounts.
Car insurance providers often offer auto insurance discounts that you can use to save extra money. Some insurance companies offer employee discounts or special discounts for those who belong to certain organizations.
Frequently asked questions
Can you drive without car insurance in North Carolina?
North Carolina requires you to maintain a minimum amount of car insurance. This includes both liability and uninsured/underinsured motorist coverage in case you are in an accident with someone who does not have car insurance. If you are caught driving without auto insurance, you could be responsible for penalties.
Who has the cheapest car insurance in North Carolina?
The cheapest price offered for your auto insurance policy will depend on several factors, such as your credit score, driving history and the kind of car you drive. It is important to quote with a few carriers to see who offers you the coverage you want at the best rate.
What is the best car insurance in North Carolina?
The best car insurance in North Carolina varies by each driver’s needs, preferences and unique situation. Erie Insurance, Geico, North Carolina Farm Bureau and State Farm all make the list for cheapest average rates, but cost is not the only factor that contributes to a provider being the best fit for you.
What is the average cost of car insurance in the U.S.?
Car insurance in North Carolina is much cheaper than most places in the country. The average cost of car insurance is $565 annually for minimum coverage and $1,674 per year for a full coverage policy in the U.S. Meanwhile, North Carolina drivers only pay an average of $413 a year for minimum coverage and $1,325 a year for full coverage.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 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 coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
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