Auto Insurance Rate Increases in North Carolina: Among the Lowest in the Country

Auto insurance rates in North Carolina have not gone up much in the past six years. It is a stark contrast to the rest of the country where rates have increased an average 22% in that same time. We break down the lack of rate increases in the Tar Heel State below.

In North Carolina, auto insurance rates have not gone up much since 2011. That is a stark contrast to the rest of the country where rates have increased an average 25% in that same time. We break down the lack of rate increases in the Tar Heel State below.

Car Insurance Rate Increases in North Carolina

The 7% auto insurance rate increases in North Carolina is among the lowest in the country since 2011. Only three companies raised rates by double digits: Allstate, State Farm and Nationwide. The North Carolina Farm Bureau is one of the few companies in the entire country to actually decrease rates over the past six years. That said, North Carolina auto insurance rates are still favorable compared to the rest of the country.

Company201220132014201520162017*Total Inc. Since 2011
Allstate2%0%2%5%3%0%13%
American Family0%0%0%0%0%0%0%
AM Trust0%0%0%0%0%0%0%
GEICO0%2%2%3%1%0%8%
Erie0%-2%0%0%3%0%1%
Farmers0%0%0%0%0%0%0%
Liberty Mutual1%3%0%0%0%0%4%
Nationwide5%2%1%2%0%0%11%
North Carolina Farm Bureau-3%0%-3%0%0%3%-4%
Progressive0%0%0%0%0%0%0%
State Farm0%0%2%0%3%6%11%
Travelers0%0%0%0%0%1%1%
USAA4%1%0%0%0%0%5%
Average1%1%0%1%1%2%7%

*Until May 2017

The graph below shows how each of the insurers above stacked up against each other in terms of rate increases.

Image shows cumulative car insurance rate hikes in Pennsylvania by company since 2011

Auto Insurance Rate Increases in North Carolina Compared to Other States

As we say above, rate hikes in the Tar Heel state were among the lowest in the country, which makes sense given how close the competition is in the state. In fact, only Alaska, Hawaii and Wyoming had lower increases. Neighboring South Carolina was not so lucky, as drivers there experienced the 9th highest rate in the country, about 31%--over 4x greater than North Carolina.

Map shows how states compared for car insurance premium hikes since 2011

North Carolina auto insurers manage to average no more than a 1% rate increase every year, even during ones where most other states are jacking up rates. In 2015, while the average increase was 5% nationwide, NC insurers only raised them 1%.

YearNC Increase Per YearNational Increase Per YearDifference From National Increase
20121%4%-3%
20131%3%-2%
20141%3%-2%
20151%4%-3%
20161%6%-5%
2017*2%3%-1%

*Until May 2017

Sources
Nielsen iClout data
Ratefilings.com

Mark Fitzpatrick

Mark Fitzpatrick is a Research Analyst at ValuePenguin focused on the insurance industry. He previously worked in Country Risk Management at State Street Corporation.

Comments and Questions

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.