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Our top picks for auto insurance in North Carolina
State Farm is one of the most recognizable providers in the country and the largest auto insurance company in North Carolina.1 With low average rates, solid bundling options and habit-based driving programs for drivers young and old, State Farm is our overall top pick.
USAA has some of the lowest car insurance rates and highest customer service ratings in North Carolina. If you’re a military member, veteran or spouse/child of a military member or veteran, you’ll have access to all the discounts, membership perks and coverage options USAA offers.
North Carolina is known for its Great Smoky Mountains, Wright Brothers National Memorial and iconic brands like Pepsi and Krispy Kreme. It also offers cheap car insurance. On average, North Carolinians pay about $750 a year for car insurance, which is 28 percent more affordable than the national average of $1,047.
Even with low annual averages, insurance rates and coverage types vary from provider to provider and from person to person, depending on many factors, including ZIP code. Finding the best rates and coverage for your unique needs and circumstances might be difficult and that’s why we’re here. Below, we’ll cover the best providers in North Carolina based on coverage type, affordability, driving record and more.
Best Auto Insurance in North Carolina Overall: State Farm
Best Auto Insurance for Active Military and Veterans in North Carolina: USAA
Best Auto Insurance for High-Risk Drivers in North Carolina: Direct Auto
Best Auto Insurance for Homeowners in North Carolina: Allstate
Insurance company | Average annual rate | Bundling discount | Senior discount | Good student discount | Safe driver discount | Low mileage discount | J.D. Power auto claims satisfaction study
(out of 1,000)2 | Review |
---|---|---|---|---|---|---|---|---|
State Farm | $1,419 | Yes | No | Yes | Yes | Yes | 882 | State Farm review |
USAA | $1,151 | Yes | No | Yes | Yes | Yes | 890 | USAA review |
Direct Auto | $2,487 | Yes | Yes | Yes | Yes | No | N/A | Direct Auto review |
Allstate | $1,673 | Yes | No | Yes | Yes | Yes | 889 | Allstate review |
State Farm’s average annual rate is $1,419, which makes it the third-cheapest provider among the top 10 largest providers in the country. You can expect these rates to be cheaper in North Carolina, where car insurance rates are 28 percent lower than the national average.3 Whether you’re a young driver, a homeowner, a low-mileage driver, a rideshare driver or something else, State Farm will probably have a discount or coverage option for you.
State Farm’s Drive Safe and Save behavior-based driving program can help you save on car insurance regardless of your age, driving history, credit score or other factors that impact premiums. You get a discount just for signing up for the program, and you can earn up to 30 percent off your premiums by completing the program.
Here’s how it works:
The app will record your driving habits and calculate your driving score every six months. To get a good score, make sure you’re not accelerating or speeding, slamming your brakes or turning too sharply. Additionally, the app will track how many miles you drive. State Farm recommends driving fewer than 7,500 for personal usage to receive a low-mileage discount.
FYI:
North Carolinians drive over 11,000 miles per year on average, which is about 2,000 more miles than the average American (9,336 miles).4 If you’re anywhere close to driving 7,500 miles per year, you should reach out to your local agent to see what kind of low-mileage discounts are available to you.
If you drive for a rideshare service, such as Uber or Lyft, you’ll need additional rideshare coverage to stay protected for every portion of your drive.
Rideshare companies provide insurance only after you’ve accepted a ride or while you’re transporting a passenger and your personal insurance won’t cover you because you’re technically working. So, if you get into an accident while your rideshare app is on and you’re waiting for a request or driving to pick up a passenger, you might have to pay for the damages or injuries without help from a provider. Rideshare insurance will fill that coverage gap so you’re protected during every segment of your drive.
State Farm’s Steer Clear safety program is a great opportunity for young drivers to improve their driving habits and save on car insurance in the process. All you have to do is speak to your agent, download the app and complete all the program requirements within six months. The Steer Clear program is broken down into four parts:
In North Carolina, like in most states, young drivers tend to pay more for premiums because they’re likely to get into more accidents and receive more traffic violations on average. Here’s how teen drivers compare to the rest of the state concerning motor vehicle accidents in 2020. Keep in mind that teens make up about 2 percent of all drivers in North Carolina (226,448 teen drivers out of 12.19 million drivers total), so the crash rates for teens are much higher than other age groups.
Drivers and percentage of crashes | Total crashes | Speeding-related crashes | Distracted driving-related crashes | Lane departure-related crashes | Alcohol-related crashes |
---|---|---|---|---|---|
Teen drivers (ages 15-19) | 42,489 | 3,174 | 8,223 | 9,348 | 1,080 |
All drivers | 247,241 | 18,340 | 44,128 | 64,705 | 11,475 |
Teen percentage | 17% | 17% | 19% | 14% | 9%5 |
With more than 100,000 active duty military members/military families and nearly 750,000 veterans, North Carolina is home to the fifth-largest military population in the country.6 If you are part of the North Carolina military community, consider USAA for auto insurance. USAA offers some of the most competitive rates in the auto insurance industry and ranks the highest on several third-party rating systems, including J.D. Power and AM Best.
If you’re deployed overseas or in a different state, you can keep your vehicle in North Carolina and save with a USAA storage discount. Here are the three main saving opportunities USAA offers for deployed military members.
Discount | Maximum saving percentage | Eligibility requirements |
---|---|---|
Garage storage discount | 15% | You can earn this discount by storing your vehicle on a military base (must have comprehensive insurance). |
Low-mileage discount | Varies based on how much you drive | You can earn a discount by keeping your mileage under 7,500, 5,000 or 2,500 miles (good for members coming in and out of North Carolina between deployments). |
Storage discount | 60% | Keep your vehicle in storage while you’re deployed to be eligible for the storage discount. |
Although deployed military members don’t have the luxury of bringing their families overseas with them, military members stationed overseas can get approval for their families to join them.7 If you and your family are stationed in one of the below international locations, transferring your insurance will be simple and seamless with USAA.
Third-party rating systems ensure auto insurance providers are managing their finances in a competent manner and upholding their service standards. USAA is consistently ranked among the best in the auto insurance industry for customer service, financial security, claims satisfaction and more:
If you’re a new driver, a teen driver or someone with a history of accidents, it might be difficult for you to find car insurance at an affordable rate. In some cases, auto insurance providers aren’t even willing to insure you as a high-risk driver because of the financial risk it would entail. Direct Auto helps fill this gap by offering specialized car insurance catered to high-risk drivers, with 30 offices in North Carolina.
North Carolina ranks average or slightly below average on several categories that car insurance providers consider when assessing your risk level as a driver. Below, we’ll look at some of the most common background categories car insurance providers leverage to determine your rates and eligibility.
Category | North Carolina average | National average |
---|---|---|
Percentage of fatalities from alcohol-impaired drivers | 30% | 30% |
Motor vehicle fatality rate (per 100,000 population) | 15 | 129 |
Percentage of people who always wear their seat belts | 84% | 90% |
Credit score | 707 | 71410 |
Insurance providers may also consider you a high-risk driver if you fall into one of the following categories:
Direct Auto will not only insure you if you’re a high-risk driver, but it can bring your car insurance costs down with sizable discounts and a dedicated team to walk you through the process.
Direct Auto offers one of the longest lists of discounts among any provider, small or large. You can earn savings of up to 20 and 25 percent in multiple categories, which is more than most large providers offer. Here are a few of its largest discounts:
Type of discount | Requirements | Maximum savings percentage |
---|---|---|
Previous coverage discount | If you’ve had coverage for at least 6 months prior to applying for Direct Auto insurance, you could be eligible for this discount. | 25% |
Multiple vehicle discount | You could earn a quarter off your premiums by insuring multiple vehicles. | 25% |
Policy renewal | Renew your policy within seven to 10 days of its expiration date and you could qualify for this discount. | 20% |
Vehicle equipment | Installing or already having a vehicle with an antitheft system, antilock brakes, stability control or other approved vehicle equipment could qualify you for this savings. | 10% |
Safety driver tracking program | You can acquire this discount by signing up with Direct Auto’s DynamicDrive program. | 10% |
Accident prevention course | The accident prevention course requires you to complete a qualifying accident prevention class within the past 36 months. | 10% |
Multipolicy discount | Bundle your auto with motorcycle insurance and/or commercial auto insurance to gain this discount. | 10% |
Good student | You need a B average or to be in the top 20% of your class to qualify for this discount. | 10% |
Safe driver | If you haven’t gotten into a traffic violation or accident in 36 months, you could be eligible for this saving. | 10% |
In North Carolina, you need minimum liability (bodily injury and property damage coverage) as well as uninsured motorist coverage to drive legally. However, to be safe on the road, you will often need more than the minimum requirements. With Direct Auto, you can extend your limits and integrate several add-ons and other insurance types into your plan. Here’s what Direct Auto offers if you’re looking to bundle and add additional coverage:
DID YOU KNOW?
According to State Farm’s 2022 annual study, North Carolina is considered a high-risk state for animal collisions. Every one out of 77 claims will involve an animal collision, making it the 17th highest in the country for animal collisions.
Allstate is the fourth-largest auto insurance provider in the country and the sixth-largest in North Carolina. On top of being one of the oldest and most recognizable providers in the country, Allstate offers one of the most sizable bundling discounts for homeowners. A high claims satisfaction score, seamless mobile app features and a wide range of coverage options put Allstate in our top picks for North Carolinians.
If you’re a homeowner, you can benefit from the highest home bundling discount on our list: up to 25 percent. Bundling makes it easier to manage your various policies from the same Allstate account and the deal applies to renters insurance and condo owners, as well. Here are all the ways you can bundle with Allstate:
DID YOU KNOW?
North Carolina’s homeowner rate reached 66 percent in 2022, which is slightly higher than the national average, according to U.S. Census data.
Access customer service support and several seamless features with Allstate’s mobile app. It took us only a few minutes to download the app and create our account. From the dashboard, we could easily view our policy, pay bills and upload a digital ID. Here’s what else we could do with the Allstate app:
The app has a 4.8 out of five-star rating on the App Store and a 3.9 on the Google Play store.
Wondering how else you can save on your car insurance? Take a look at Allstate’s robust set of discounts and talk to your agent about what other savings you might qualify for:
Yes, you need insurance when using a rental in North Carolina. However, all rental cars already come with the state minimum coverage, so you don’t necessarily need to purchase additional coverage unless you want extra protection.
If you have a nationwide provider, then you will maintain your coverage when you move out of state. Your rates may change based on where you move (some states are more or less expensive than others for car insurance).
No, North Carolina is an at-fault state, also known as a tort state. In at-fault states, the driver who caused the accident will be responsible for covering the other party’s losses.
North Carolina follows a pure contributory negligence law, meaning you won’t be able to receive any compensation from the other driver if your negligence contributed in any way to the accident. Even if you were one percent at fault in an accident, you wouldn’t be able to receive any payment from the other party in a civil suit.
The minimum car insurance requirements in North Carolina are as follows:
You must also get uninsured/underinsured motorist coverage with the same liability limits.
North Carolina Property and Casualty – Other Private Passenger Auto Liability Business. North Carolina Department of Insurance. (2021, Dec 31).
https://www.ncdoi.gov/documents/financial-analysis/statistical-data/2021p3s192other-private-passenger-auto-liability/open
Insurers Struggle to Manage Expectations in Auto Claims Process as Repair Times Increase, J.D. Power Finds. J.D. Power. (2022, Oct 27).
https://www.jdpower.com/business/press-releases/2022-us-auto-claims-satisfaction-study
2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).
https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf
Highway Statistics 2020. U.S. Department of Transportation. (2021, Oct).
https://www.fhwa.dot.gov/policyinformation/statistics/2020/ps1.cfm
NORTH CAROLINA 2020 TRAFFIC CRASH FACTS. North Carolina Division of Motor Vehicles. (2023).
https://connect.ncdot.gov/business/DMV/CrashFactsDocuments/2020%20Crash%20Facts.pdf
Governor Cooper Declares May Military Appreciation Month in North Carolina. North Carolina Governor Roy Cooper. (2021, May 17).
https://governor.nc.gov/news/press-releases/2021/05/17/
The Finer Points of Moving Overseas, Part I. Military.com. (2023).
https://www.military.com/pcs/finer-points-of-military-move-overseas.html
A.M. Best Affirms Ratings of USAA, Its Subsidiaries and USAA Capital Corporation. AM Best. (2023).
https://news.ambest.com/newscontent.aspx?altsrc=23&refnum=153289
Traffic Safety Facts 2020 Data. National Highway Traffic Safety Administration. (2022, Apr).
https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/813294
What Is the Average Credit Score in the U.S.? Experian. (2023, Feb 24).
https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/