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Last updated: May 13, 2024

Cheapest Car Insurance in North Carolina

You’ll pay 28 percent less than the national average for car insurance in North Carolina.

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In 2020, the most recent data available from the National Association of Insurance Commissioners, North Carolina residents paid $753 yearly for car insurance, which is more than a quarter below the national average. However, you can save even more on your auto insurance in the Old North State by checking out the rest of this guide on the most affordable auto insurance companies in North Carolina.

Cheapest Car Insurance Companies in North Carolina

To help you find the cheapest average cost car insurance for North Carolina drivers, we’ve combed through the data from insurers who operate in the state. Auto insurers look at age, gender, marital status, credit score, ZIP code, driving history, number of accidents, and type of vehicle (year, model, and make) when putting together policies for North Carolina residents.


  • Males: Farm Bureau, $864
  • Females: Erie, $792

Marital Status

  • Single: Nationwide, $600
  • Married: Erie, $792


  • Full coverage car insurance: Erie, $792
  • Minimum coverage car insurance: Erie, $312

Driving Record

  • Clean driving record: Erie, $792
  • Speeding ticket: Farm Bureau, $1,152
  • At-fault accident: Erie, $864
  • DUI: Nationwide, $2,016


  • Excellent: Erie, $978
  • Poor: Erie, $1,152


  • Teens: Erie, $1,632
  • 20s: North Carolina Farm Bureau, $1,079
  • 30s: North Carolina Farm Bureau, $991
  • 40s: Erie, $978
  • 50s: North Carolina Farm Bureau, $894
  • 60s: North Carolina Farm Bureau, $894
  • 70s: North Carolina Farm Bureau, $1,001


  • Current military personnel: USAA, $1,644
  • Veterans: USAA, $1,644

The Best Car Insurance in North Carolina

Check out the best car insurance companies in North Carolina:

  • State Farm
  • USAA
  • Direct
  • Allstate

Ways to Save

  1. Check with the insurer for discounts. Typical auto insurance discounts include policy bundling, good student, safe driver, and multi-vehicle. Additionally, some insurers offer discounts that last for several years to policyholders who successfully complete defensive driving courses. However, court-ordered driving classes are not eligible for discounts, typically.
  2. Drive vehicles with safety features. Many auto insurance companies will give lower rates for vehicles with safety features such as daytime running lights, anti-theft devices, anti-lock brakes, collision warning and intervention systems, backup cameras, and adaptive cruise control.1
  3. Sign up for usage-based insurance. Usage-based insurance bases your premium on the amount of miles you drive annually. So, if you work from home, carpool, or have a short commute, you could save. Also, look into the option of a mobile app or monitoring device to record your driving habits such as distance, acceleration, speed, and braking. Safe driving could translate into savings.
  4. Purchase a newer car. If your vehicle is within the past three model years, you could save on your auto insurance.
  5. Maintain a clean driving record. One of the easiest ways to a lower premium is a good driving history, free from accidents and driving infractions. The state created the North Carolina Safe Driver Incentive Plan (SDIP) to provide you with a financial incentive to develop safe driving habits. The SDIP assigns points for convictions and at-fault accidents that happen during the experience period, a three-year time frame preceding the date you apply for insurance coverage, or when your current policy renews.2 The following chart outlines some of the common incidents that would net you points on your driving record and rate increases. Avoid these incidents to keep your rates low.
SDIP points Convictions/at-fault accidents Car insurance rate increase
1 Moving violations 40%
1 Going 10 mph or less over a speed limit under 55 mph 40%
1 At-fault auto accident with total damage to all property, including insured’s property, of $2,300 or less 40%
2 Illegal passing 55%
2 Following too closely 55%
2 Going over 10 mph higher than speed limit in a zone between 55 mph and 76 mph 55%
3 At-fault accident resulting in death or total bodily injury (to all persons) of more than $1,800 70%
4 Reckless driving 90%
4 Hit-and-run with property damage only 90%
4 Passing a stopped school bus 90%
8 Driving on a revoked or suspended license or registration 200%
8 Aggressive driving 200%
10 Highway racing 260%
10 Speeding to escape arrest 260%
12 Operating vehicle with blood-alcohol content of 0.08% or higher, also known as a North Carolina DWI 340%
12 Manslaughter or negligent homicide 340%
12 Hit-and-run with bodily injury or death 340%


To help keep your points low, consider taking a defensive or safe driving course.

What Insurance Is Required in North Carolina?

Every vehicle registered in North Carolina must have continuous liability insurance from a company licensed to do business in the state. North Carolina has the following minimum requirements:

  • Bodily injury liability per person: $20,000
  • Bodily injury liability per accident: $40,000
  • Property damage liability coverage per accident: $60,000
  • Uninsured/underinsured motorist coverage: 
    • Bodily injury liability per person: $30,000
    • Bodily injury liability per accident: $60,000
    • Property damage liability per accident: $25,0003

If you want the lowest rates, get minimum coverage. However, we don’t recommend sacrificing coverage to get cheap car insurance.

These amounts may not cover you fully in the event of an accident, which is why we suggest drivers carry a minimum of 100/300/100:

  • $100,000 for each person of bodily injury coverage
  • $300,000 for each accident of bodily injury coverage
  • $100,000 for overall property damage coverage

In addition, we recommend adding the following coverages to protect you in the event of an accident:

  • Comprehensive: Comprehensive coverage will provide reimbursement for replacements or repairs because of incidents like vandalism; theft; weather damage from tree limbs, fire, hail, or flooding; and hitting a deer (North Carolina is considered a high-risk state for deer collisions).4
  • Collision: Collision coverage relates to car damage because of accidents with other vehicles.
  • Medical payments: Medical payments coverage provides payment for your and your passengers’ medical expenses due to an accident.
  • Gap insurance: You need gap insurance for vehicles with loans or leases because it will pay the remainder of what you owe if your vehicle is totaled.


Both comprehensive and collision cover only the actual cash value of your totaled vehicle, which is what your car is worth if you were to sell it today.

Alternative Car Insurance

North Carolina Reinsurance Facility

North Carolina provides alternative car insurance for residents unable to secure coverage through market-based auto insurance companies. Since 1973, the North Carolina Reinsurance Facility (NCRF) offers auto liability insurance to state residents. Contact the NCRF for more information on how to sign up for auto insurance.

  • Address: 
    • 2910 Sumner Blvd.
      Raleigh, NC 27616
  • Phone: 919-783-97905

>> Related: What is Reinsurance?

North Carolina Division of Motor Vehicles

For information on everything from vehicle registrations to driver’s licenses, contact the Division of Motor Vehicles, which has more than 100 offices throughout the state:

  • Mail: 
    • 3101 Mail Service Center
      1515 N.Church St.
      Rocky Mount, NC 27804​
  • Phone: 919-715-7000, weekdays 8 a.m. to 5 p.m.
  • Online messaging:


Living in the Tar Heel State, you’ll enjoy some of the least expensive options for car insurance. By personalizing your policy, you’ll have even more ways to lower your premium and still get the coverage you need. Take a close look at your insurance options, such as private companies or the NCRF. Read more about North Carolina car insurance in our frequently asked questions below.

Frequently Asked Questions

Is North Carolina a no-fault state for auto accidents?

No, North Carolina is not a no-fault state for auto accidents. Rather, North Carolina is an at-fault state for auto accidents, which means the at-fault party is responsible for paying for damages and/or injuries to all parties involved in an accident.

In addition, the state follows a contributory negligence law to determine who can sue for losses in a civil suit based on a percentage of fault after an accident. Under this law, a driver whose actions led to the collision in any way will not be eligible for any compensation.

Does North Carolina require collision insurance?

No, the state does not require collision coverage, but your auto lender or lessor may mandate this coverage as a condition of the loan or lease.

What is the accident law in North Carolina?

North Carolina’s accident law mandates if you as the driver are involved in a collusion, you must call a law enforcement agency as soon as possible if anyone is injured or dead, or if the total property damage amounts to $500 or more.

Failure to do so could result in a class 1 misdemeanor charge, according to North Carolina General Statutes §15A-1340.23. Penalties range from one to 120 days of one of the following:

  • Active punishment: Incarceration in a local jail
  • Intermediate punishment: Special probation along with drug treatment, house arrest, community service, jail time, substance abuse assessment, or educational programs
  • Community punishment: Probation, house arrest, community service, substance abuse assessment, educational program, or jail time

Fine amounts are at the judge’s discretion and have no maximum ceiling.

Do I need proof of insurance to register a car in North Carolina?

Yes, you will need to provide proof of liability insurance in order to register your vehicle in the state.

Who pays medical bills after an accident in North Carolina?

In North Carolina, an at-fault driver is responsible for paying any person who suffered an injury or loss because of an accident. According to the state’s Department of Insurance, bodily injury claims could include hospital and physician bills, lab fees, lost wages, and pain and suffering directly related to the auto accident.


  1. Driver Assistance Technologies. National Highway Traffic Safety Administration. (2023).

  2. Safe Driver Incentive Plan. North Carolina Department of Insurance. (2023).

  3. Insurance Requirements. The Official North Carolina DMV Website. (2023).

  4. NC Deer-related Crashes Increase in the Fall. The University of North Carolina Highway Safety Research Center. (2021, Oct 18).

  5. Assuring the availability of automobile liability coverage for North Carolina. North Carolina Reinsurance Facility. (2023).