Best car insurance in North Carolina for 2023

Best car insurance companies in North Carolina

Bankrate’s insurance editorial team examined premium data, customer satisfaction from the J.D. Power 2022 U.S. Auto Insurance Study, average rates, coverage types, discounts and other important metrics for the largest auto companies by market share. Based on our analysis, we found Geico, State Farm, Nationwide, Allstate and North Carolina Farm Bureau to be among the best car insurance companies in North Carolina. With the exception of Allstate, these companies all have average rates that are lower than the state averages of $1,446 for full coverage and $432 for minimum coverage. They also offer robust coverage options, a variety of potential discounts and other perks we’ll discuss more in depth below. When shopping for car insurance, North Carolina drivers might want to get quotes from these companies:

How Bankrate chose the best car insurance companies in North Carolina

To find the best car insurance companies in North Carolina, we developed a proprietary Bankrate Score system that takes several metrics into account. Our insurance editorial team analyzed average car insurance premiums from Quadrant Information Services and reviewed coverage options, discounts, policy features, customer satisfaction scores from J.D. Power and financial strength ratings from AM Best for each company. We also looked at accessibility and ease of use for policy management through online and mobile resources.

Insurance companies are then graded on a weighted scale of 5.0 points, with a score closer to 5.0 indicating strong performance across these categories. If you are shopping for the best auto insurance in North Carolina, our research might help you find a carrier that fits your needs.

How much is car insurance in North Carolina?

North Carolina car insurance rates are well below the national average. While the average cost for full coverage car insurance in the U.S. is $2,014 annually, the average annual cost for North Carolina car insurance is $1,446 for a full coverage policy, according to 2023 rate data gathered from Quadrant Information Services. Minimum coverage is also cheaper, on average, in North Carolina, with an average policy costing $432 per year. The average minimum coverage premium in the U.S. is $622 per year.

Car insurance in NC may be cheaper than the national average for several reasons. Parts of the state are at risk for severe weather damage, including hurricanes, but many areas are shielded from the storms, which may help keep full coverage rates down. Although some parts of the state experience heavy tourism, the areas that have less traffic and therefore a lower risk of accidents might offset the busier areas. Rates vary by location within a state though, so areas closer to the coast — where tourism is likely heavier and roadways are more crowded — may have higher premiums.

How to find the best car insurance in North Carolina

The best car insurance in North Carolina may be different for everyone. Since each insurance company has a unique rating system, there isn’t a one-size-fits-all when it comes to car insurance policies. Insurers determine your premium based on numerous characteristics such as age and gender (in most states), driving records, vehicle make and model and other factors. When you are searching for North Carolina auto insurance, these considerations may help you narrow down whether a carrier could be right for you.

Consider minimum insurance requirements in North Carolina

Like most states, North Carolina requires drivers to carry at least minimum levels of car insurance to drive legally. You must carry the state-required levels of bodily injury liability and property damage liability coverage, as well as uninsured motorist coverage and underinsured motorist coverage. Understanding North Carolina’s car insurance laws may help you decide if you need higher levels of coverage, but you do not need to commit them to memory. Licensed insurance agents won't let you buy a policy that does not adhere to the state’s laws.

Consider lender requirements

If you have a loan or lease on your car, you should be aware of your financial institution’s car insurance guidelines. Minimum coverage does not include comprehensive coverage or collision coverage, which provides you with coverage for damage to your vehicle. If you purchase those options, you will have a full coverage policy, which is often required by lenders. You may also want to consider gap insurance. If your new vehicle is totaled and the payout is less than the balance of your loan, gap coverage is designed to help pay the difference.

Consider your individual needs

Do you have a teenage driver you need to insure? Are you looking for a company that has a highly-rated digital app? Are you more concerned with customer service than you are with price, or is your budget your primary concern? Do you have accidents and tickets on your record that could affect your premium and eligibility? Understanding your personal insurance needs might help you decide what companies could be a good fit.