Average Cost of Car Insurance in North Carolina

By Coverage Level

If you choose only the minimum auto insurance required in North Carolina, you can expect to pay an average of $674 per year. However, if you add other coverages to your plan, like collision, comprehensive, and medical payments, you can expect an average premium of $1,639 per year.

By Company

The insurance company you choose affects your car insurance costs. Here are the average annual rates for some of the top auto insurers in the state, with Progressive offering the cheapest rates.

By City

Where exactly you live in North Carolina also impacts your car insurance rates. Major cities have higher rates, on average, than more rural areas. Of North Carolina’s big cities, Charlotte has the most expensive full coverage rates, at 8 percent more than the state average.

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 $4,163.

By Credit Score

Credit scores commonly determine how an insurance company calculates your premium. The better your credit, the less you can expect to pay for your auto insurance in North Carolina.

The table below shows the companies with the lowest average rates across various demographics. Progressive wins in almost every category, except for minimum coverage, where Erie leads.

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

• Increase your deductibles. Increasing your deductibles on collision and comprehensive coverage will lower your overall auto insurance premium. Choose a deductible amount that makes sense for your financial circumstances. 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 lower your car insurance costs.
• 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.

North Carolina increased its mandatory minimum auto insurance limits as of July 1, 2025. The increased limits are as follows:

• Bodily injury liability: $50,000 per person/$100,000 per accident
• Property damage liability: $50,000 per accident
• Uninsured motorist coverage: $50,000 per person/$100,000 per accident²

Uninsured/underinsured motorist coverage comes in handy if you’re in an accident caused by someone who doesn’t have insurance coverage, or doesn’t have enough. North Carolina’s new minimum coverage limits provide decent financial protection, but consider increasing to 100/300/100 for added peace of mind.

North Carolina is an at-fault (or liability) state, meaning 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. Unlike most states, North Carolina does not require high-risk drivers to file them.

We analyze average premiums in North Carolina for full and minimum coverage for good drivers with good credit as well as various driver profiles, including those with DUIs, at-fault accidents, speeding tickets, low credit and households with teenagers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $100,000 per accident
• Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
• Comprehensive and collision: $500 deductible