Average Cost of Car Insurance in North Carolina

According to data from the National Association of Insurance Commissioners (NAIC), the average annual auto insurance premium in North Carolina was about $753 as of 2020.¹ This is much lower than the national average of $1,047.

However, your rates may be higher, especially if you have poor credit or a DUI. Here is the average cost of car insurance in North Carolina for different demographics.

By Age

Age plays a major role in a driver’s auto insurance rate. Typically, younger drivers pay more for car insurance due to their lack of driving experience and higher accident rates. Specifically, 16-year-olds pay the most each year, with an average annual premium of $2,355.

By Gender

Male drivers pay more for their auto insurance compared to female drivers, but only slightly.

By Marital Status

Married drivers pay marginally less for car insurance compared to their single counterparts. However, we found surprisingly low rates for divorced and widowed drivers in North Carolina.

By Coverage Level

If you opt for North Carolina’s minimum auto insurance requirements, you may pay as little as $394 annually for your policy. However, if you choose to add on other coverages to your plan, like collision, comprehensive, and medical payments coverage, you’re looking at an average premium of $1,578 per year.

By Credit Score

It’s common for credit scores to play a role in how an insurance company calculates a driver’s premium. With one exception, the better your credit is, the less you can expect to pay for your auto insurance in North Carolina.

Take a look at the companies we’ve found with the lowest rates across various demographics.

To save money on your car insurance policy in North Carolina, consider the following options:

• Increase your deductible. Increasing your deductible on collision and comprehensive coverage will lower your overall auto insurance premium. It’s important to choose a deductible amount that makes sense for your financial circumstances, so we suggest looking at how much you can afford to pay out of pocket in the event of a claim.
• Improve your credit. Since the state of North Carolina allows companies to factor credit scores into a customer’s rates, improving your credit score will help you lower your cost of car insurance.
• Practice safe driving. Many North Carolina auto insurers, such as State Farm and Farm Bureau, offer savings opportunities for those who demonstrate defensive driving and have a clean driving record.

The following coverages are included in the mandatory minimum auto insurance in North Carolina:

• $20,000 in bodily injury liability coverage per person
• $40,000 in bodily injury liability coverage per accident
• $15,000 in property damage liability coverage per accident
• $30,000 in uninsured/underinsured motorist bodily injury liability coverage per person
• $60,000 in uninsured motorist coverage/underinsured motorist bodily injury liability coverage per accident
• $25,000 in uninsured/underinsured motorist property damage liability coverage per accident

North Carolina is an at-fault (or liability) state, which means the driver found at fault for a car accident pays for the other party’s bodily injury and property damage expenses.

SR-22s and FR-44s are financial responsibility certificates proving a driver’s liability insurance. Many states require high-risk drivers to have them, but North Carolina is not one of those states.

With over 20 years of experience connecting consumers with leading car insurance providers, AutoInsurance.com has built an extensive database of proprietary data surrounding customer experiences and the companies they have had the most success with. This data, along with state-specific information surrounding fault systems, minimum coverage requirements, and SR-22s/FR-44s, allows us to present you with an accurate overview of what you can expect to pay for auto insurance across different states.