Cheapest car insurance in North Carolina in 2023

The cheapest car insurance companies in North Carolina

Luckily for North Carolinians, car insurance in the Tar Heel State is relatively low compared to the rest of the country. In North Carolina, a full coverage policy costs, on average, $1,446. This annual premium is 28 percent lower than the national average. Minimum coverage in North Carolina averages $432 per year, 35 percent lower than the national average.

However, car insurance companies use more than a dozen rating factors to determine your premium. While North Carolina state law prohibits insurers from considering your gender when calculating rates, companies are still allowed to use your insurance-based credit score, marital status, and zip code, among many others.

Still, based on premium data sourced from Quadrant Information Services, the companies below offer some of the cheapest rates in North Carolina across a few different segments of drivers:

The cheapest car insurance companies in North Carolina by coverage level

While minimum coverage insurance usually provides cheap car insurance in North Carolina, it leaves you open to a possible hefty out-of-pocket expense if you’re at fault in an accident. Not only will you be held liable to pay for any damage or injury you cause that exceeds your minimum limits, but damage to your vehicle will not be covered. For that, you need to include comprehensive and collision coverage.

However, a powerful tool for finding the most affordable car insurance in North Carolina might be learning the baseline premiums for various companies. Below, we’ve included the five cheapest North Carolina car insurance companies for both minimum and full coverage policies:

Cheapest cities in North Carolina for car insurance

Where you live within a state can impact how much you spend on car insurance. For instance, those that live in bigger cities generally pay more expensive premiums because a higher population density leads to more car accidents in your area. Additionally, your vehicle might be more likely to be stolen or vandalized in a big city versus a small rural town. Below, we’ve listed the cities where you might find the most considerable North Carolina car insurance savings:

Factors that impact cheap rates in North Carolina

Car insurance rates do not stay the same throughout your life. Rates change based on several factors, including live events such as getting married, moving to a new community, adding a teenage driver, or driving-related incidents such as an at-fault accident, speeding ticket or a DUI. When your life changes, you may want to consider reviewing your car insurance to make sure your coverage is appropriate and that your company is still the best fit. 

Insuring a teen driver

Minimum coverage requirements for North Carolina drivers

Like most states, North Carolina has minimum coverage car insurance requirements. To drive legally in the state, you must carry at least the following coverage types and limits:

• $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

However, most insurance professionals recommend that you purchase higher limits if you can afford to. Minimum coverage limits are quite low and may not provide adequate protection in the event of an at-fault accident. Additionally, if you have a loan or lease on your vehicle, you likely need to have full coverage to satisfy your financial institution’s requirements.

How to get the cheapest car insurance in North Carolina

Finding low-cost car insurance in North Carolina may seem daunting, but with a bit of work (and these tips), you could find yourself on the fast track to cheap rates. 

Shop around

Shopping around can be a pain, but it truly may be the best way to secure the cheapest car insurance in North Carolina. Before requesting quotes, you might want to consider what other benefits you need outside of cheap premiums. For instance, if you have a teen driver on your policy, you may want to find a company that offers several teen driving discounts. Or maybe you prefer to do business face-to-face with a local agent, so you need a company that can accommodate that. Once you know what you need, you can begin to request free quotes and compare companies. 

Keep your driving record clean

Drivers with a clean driving record tend to pay lower premiums. Having accidents, tickets or DUI convictions on your driving record could indicate that you engage in risky driving habits, which tends to increase premiums. On top of lower base premiums, many carriers offer substantial safe driver discounts. 

Work on your credit score

Although credit isn’t something you can improve overnight, increasing your credit score can have a powerful impact on your rates in states that allow insurers to use credit as a rating factor (including North Carolina). This is because, statistically speaking, those with poor credit tend to file more claims, leading insurers to charge higher rates to compensate for this elevated risk.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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 2021 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. 

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.