Cheapest car insurance in North Carolina for 2024

Luckily for drivers looking for cheap car insurance in North Carolina, average insurance costs in the Tar Heel State are relatively low compared to the rest of the country at $1,713. This annual premium is 26 percent less than the national average of $2,314 per year. Minimum coverage in North Carolina averages $498 per year, 23 percent less than the national average of $644.

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 allowed to use your insurance-based credit score, marital status and ZIP code, among many other factors. Still, based on premium data sourced from Quadrant Information Services, the companies below offer some of the cheapest rates in North Carolina across various segments of drivers.

Key takeaways

• Cheapest company for minimum coverage: State Farm
• Cheapest company for full coverage: State Farm
• Cheapest company for drivers with prior incidents: State Farm
• Cheapest company for young drivers: State Farm

If you’re shopping for the cheapest monthly payments, don’t forget that your car insurance policy must still meet North Carolina’s minimum coverage requirements. Minimum coverage is often called liability-only insurance. It’s proof of financial responsibility if you’re at fault in a car accident.

North Carolina requires drivers to have uninsured motorist coverage in addition to bodily injury liability and property damage liability. Uninsured motorist coverage protects you if you’re involved in an accident caused by a driver who doesn’t have any or enough auto insurance to pay for the damage you incur.

We’ve listed some of the best cheap car insurance companies in North Carolina for minimum coverage policies below. Our research shows that State Farm is the cheapest.

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 it. 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.

Comprehensive and collision coverage are often referred to as full coverage. These types of insurance exceed North Carolina’s minimum car insurance requirements. While a full coverage policy does cost considerably more, it gives you extensive financial protection in the event of an accident you cause, vehicle theft, destructive weather and more. State Farm is typically the best cheap auto insurance in North Carolina for full coverage.

Your personal driving history has a big impact on your car insurance rates. Drivers with prior incidents like speeding tickets, high-risk accidents or DUI convictions face significantly higher insurance costs. Bankrate found a few insurance providers that typically offer affordable policies to drivers with prior incidents. State Farm and National General both provide lower premiums.

• Cheapest car insurance for drivers with a ticket: State Farm
• Cheapest car insurance for drivers with an at-fault accident: State Farm
• Cheapest car insurance for high-risk drivers: National General

Cheapest insurance companies for drivers in North Carolina with a speeding ticket: State Farm

Among the many factors that can impact your premium, your driving record could be one of the most significant. However, the type of conviction or incident you have will affect your policy differently. Additionally, some companies rate activity more favorably than others. If you have a less-than-perfect driving record, you might find it even more important to shop around.

We’ve included some cheap North Carolina car insurance companies for those with a single speeding ticket on their record in the table below:

Cheapest car insurance for drivers in North Carolina with an at-fault accident: State Farm

Based on our premium data, your rates after a single at-fault accident in North Carolina might be cheaper than after a single speeding ticket, which is quite surprising. However, the accident's severity and other details could likely cause these projected rates to vary. Even so, if you need cheap auto insurance in North Carolina after an at-fault accident, you might want to check out the following companies:

Cheapest car insurance in North Carolina for high-risk drivers: National General

A company might deem you a high-risk driver after being convicted of a serious infraction such as reckless driving, leaving the scene of an accident or DUI. DUI may be among the most severe of these infractions, leading to much higher-than-average rates. Not all insurance companies will offer a policy to someone with a DUI (and eligibility may also depend on how much over the legal limit you were). Still, we found that the companies below offered the cheapest rates for those with a DUI conviction:

Insurers also take a driver’s age into consideration when setting insurance rates. Car insurance for young drivers tends to be expensive in most states, and North Carolina is no exception. Rates tend to drop every year, with the youngest drivers paying the most because they’re the riskiest to insure. Young drivers might also have prior incidents that can further drive up their rates.

• Cheapest car insurance for insuring a teen driver: State Farm
• Cheapest car insurance for teens with a ticket: State Farm
• Cheapest car insurance for teens with an at-fault accident: State Farm
• Cheapest car insurance for young drivers with a DUI: National General

Cheapest North Carolina car insurance for insuring a teen driver: State Farm

Insuring a teen driver comes with challenges, including learning how to save on car insurance. Teens pay some of the highest insurance premiums due to their inexperience and risk-taking behind the wheel. However, our rate data show that the companies below may offer the most competitive premiums if you have a 16-year-old driver listed on your policy, especially when taking teen discounts and student discounts into consideration.

Cheapest North Carolina car insurance for teens with a ticket: State Farm

According to the Centers for Disease Control, teenagers are the age group that’s most likely to speed. Insurance providers know this, too, and they’ll charge teens top dollar for insurance policies. We found that State Farm offers teens the lowest rates around for teenagers who have a ticket.

Cheapest North Carolina car insurance for teens with an at-fault accident: State Farm

If you’re a teen with an at-fault accident in North Carolina, it’s important to compare car insurance rates since you’re classified as a high-risk driver. According to our research, State Farm offers some of the most competitive rates for teens who have had an at-fault accident.

Cheapest North Carolina car insurance for young drivers with a DUI: National General

Our analysis shows that young drivers with a DUI can save the most with National General. However, compare quotes from multiple companies, so you know you’re getting the best available offer.

Finding cheap North Carolina car insurance could boil down to finding the company that offers the most discounts. When you’re shopping, you may want to inquire about some of the more common discounts below:

• Young driver discounts: Insurance providers are aware that it costs significantly more to insure a young driver, so they often offer discounts that young drivers might qualify for. For instance, young drivers might be eligible for a good student discount, driver’s education discount or distant student discount.
• Safe driver discounts: Many carriers offer safe driving discounts for drivers who participate in their safe driving program or go a certain period of time without filing a claim.
• Vehicle safety discounts: Your provider might reward you with a discount if your vehicle has certain safety features like automatic seatbelts, full-front airbags, anti-lock brakes, adaptive headlights or anti-theft features.
• Bundling discount: If you get homeowners or renters insurance from the same provider, you might be able to bundle policies and earn substantial savings.

Bankrate utilizes Quadrant Information Services to analyze the latest rates in April 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate increases filed by insurance companies and are weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. 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 2022 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.

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

Teens: Rates were determined by adding a 16-year-old teen to a 40-year-old married parent’s policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy. 

Age: Rates were calculated by evaluating our base profile with the ages 18 and 21 applied. Drivers are renters on their own policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.