Cheapest minimum coverage car insurance companies in North Carolina
For a minimum-coverage policy, the average cost of car insurance in North Carolina is $445 per year, or $37 per month.
North Carolina Farm Bureau offers the cheapest rates to drivers who want a policy that satisfies the state's minimum auto insurance requirements. The average cost of car insurance from the North Carolina Farm Bureau is $335 per year — 25% cheaper than the statewide mean.
Alternatively, drivers may find cheap rates with a number of other companies, including Erie, Geico and State Farm. Each charges customers less than $400 per year for coverage, on average.
Find Cheap Auto Insurance Quotes in North Carolina
Minimum coverage is less expensive than full coverage, as the former doesn’t include comprehensive and collision coverage. It's also cheap because of its low liability coverage limits, which means you’re risking insufficient protection following an accident.
Cheapest full coverage auto insurance in North Carolina
The average cost of full coverage car insurance in North Carolina is $1,506 per year — $1,061 more than the cost of a liability-only policy in the state.
While the cost of full coverage is more than three times greater than the average cost of minimum coverage, it's still possible to find affordable quotes in North Carolina. In fact, the cheapest full coverage car insurance in the state comes from Geico. The insurer charges $910 per year for insurance, 40% less than the statewide average.
Drivers can also find cheap full coverage from Erie Insurance and North Carolina Farm Bureau. Insurance from these companies costs an average of $1,169 per year, or $97 per month — $337 cheaper per year than the statewide mean.
|3||North Carolina Farm Bureau||$1,195||$100|
|7||Allstate P&C Annual Premium||$2,981||$248|
Cheap car insurance for drivers with prior incidents
It's common for North Carolina drivers to pay much more for car insurance if their driving record includes a DUI, traffic citation or an at-fault accident. ValuePenguin considered these incidents and lists the cheapest full-coverage car insurance in North Carolina for drivers with different backgrounds.
Cheapest full coverage car insurance in North Carolina with a prior accident: Erie Insurance
After an accident, drivers will see substantially higher rates than average. Typically, the cost of car insurance for people with an at-fault accident on their records increases by 53%. However, some companies continue to offer affordable coverage: Erie is the cheapest provider for people who have been in an accident.
|North Carolina Farm Bureau||$1,912||$159|
|Average in North Carolina||$2,309||$192|
Cheapest for drivers with a speeding ticket: North Carolina Farm Bureau
Receiving a speeding ticket is likely to cause one's rates to rise — though not as much as getting into an at-fault accident. North Carolina Farm Bureau has the cheapest car insurance for drivers who have a ticket on their record. Full coverage costs $1,605 per year with the insurer, which is 23% cheaper than average.
|North Carolina Farm Bureau||$1,605||$134|
|Average in North Carolina||$2,076||$173|
Cheapest for drivers with a DUI: North Carolina Farm Bureau
The cheapest car insurance in North Carolina for drivers with a DUI or DWI is North Carolina Farm Bureau, which sells coverage for 22% less than average. Getting cited for a DUI is expensive: one offense can raise the average cost of insurance by nearly triple — or $4,514 per year.
|North Carolina Farm Bureau||$4,678||$390|
|Average in North Carolina||$6,020||$502|
Cheapest for drivers with poor credit: Progressive
It's common for insurers to charge higher rates for drivers with poor credit than others. Fortunately, Progressive still offers cheap car insurance to those drivers. With Progressive, the auto insurance costs for drivers with poor credit remain the same as it was for most people.
|Average in North Carolina||$1,775||$148|
Cheapest for married drivers: Erie Insurance
For the most part, married drivers pay the same amount for car insurance in North Carolina as unmarried people. However, because Geico charges more for married individuals (as opposed to bundled coverage), the average cost is slightly higher for married drivers in the state. In any case, Erie is the cheapest for car insurance for married drivers.
|North Carolina Farm Bureau||$1,195||$100|
|Average in North Carolina||$1,529||$127|
Cheapest car insurance for young drivers: Geico
In North Carolina, young drivers pay more than double — $522 per year — for minimum coverage than older drivers.
The cost of car insurance is much higher for young drivers compared to their older counterparts. Younger drivers are viewed as more likely to take risks and act unsafely than experienced drivers. Still, it's possible to get affordable insurance from Geico, which offers the cheapest full coverage car in North Carolina, on average. The insurer's rates are 34% cheaper than average.
For minimum coverage, State Farm has the cheapest car insurance. The insurer's rates are $29 cheaper per year than Geico's. Alternatively, North Carolina Farm Bureau has cheap liability-only coverage, which costs only $7 more per year than State Farm.
|4||North Carolina Farm Bureau||$2,440||$711|
Cheapest for young drivers with prior accident: Erie Insurance
The cheapest car insurance for young drivers who have been involved in one at-fault accident is Erie, which offers coverage for $2,493 — $42 more affordable than average. As with older drivers, insurers are likely to raise rates for younger policyholders after they’ve been in an accident. In fact, the average cost of coverage after an accident increased by $955 per year.
|North Carolina Farm Bureau||$3,158||$263|
|Average in North Carolina||$4,324||$360|
Cheapest for young drivers with a speeding ticket: Geico
Young drivers who have received a speeding ticket can still find affordable car insurance by comparing rates from multiple companies. The cost of Geico is $2,849 per year for drivers who have been caught speeding, making it the cheapest provider in North Carolina.
|North Carolina Farm Bureau||$2,850||$238|
|Average in North Carolina||$3,976||$331|
Best rated auto insurers in North Carolina
ValuePenguin recommends comparing the customer service reputations of insurance providers in your area in addition to shopping around for the best rate. If you ever have to file a claim after a loss, it's a good idea to know your provider has a history of quick, responsive service.
Nationwide was the best-reviewed insurance provider in a study commissioned by ValuePenguin. Seventy-eight percent of policyholders said they were extremely satisfied with their most recent claim — a high-point relative to its competitors. Moreover, 53% of respondents rated Progressive's customer service as "excellent."
Claim satisfaction rating
Customer service rating
*Overall rank takes both claim satisfaction and customer service ratings into account. Explanation of ratings are in the Methodology section.
According to another measurement, the Complaint Index — published by the National Association of Insurance Commissioners (NAIC) — State Farm is the car insurance company with the best customer service. The insurer received 66% of the complaints expected for its market share. Below is a table ranking insurance companies in North Carolina, from the lowest (best) complaint index to highest (worst).
2019 NAIC complaint index
2020 J.D. Power Claims Satisfaction
AM Best Rating
|2||North Carolina Farm Bureau||0.57||—||A|
North Carolina auto insurance requirements
North Carolina requires minimum limits of $30,000 per person and up to $60,000 per accident for bodily injury liability, and uninsured motorist coverage. It also requires that drivers are insured for up to $25,000 for property damage.
North Carolina minimum requirements
|Bodily injury liability||$30,000 per person, and up to $60,000 per accident|
|Property damage liability||$25,000 per accident|
|Uninsured/underinsured motorist bodily injury||$30,000 per person, and up to $60,000 per accident|
|Uninsured motorist property damage||$25,000 per accident|
The North Carolina Department of Insurance mandates that policies with the minimum coverage limits include only uninsured motorist coverage. Once protection limits are raised, the law requires that both uninsured and underinsured motorist coverage are bundled together on drivers' policies.
While your car insurance policy may meet North Carolina's minimum coverage requirements, it may not be the policy most appropriate for your needs.
We recommend all North Carolina drivers consider higher coverage limits, as minimum coverage may not be enough to fully cover damages in a costly accident.
Average cost of car insurance in North Carolina
The average cost of full coverage car insurance in North Carolina is $1,506 per year, or $126 per month. But depending on where you live in the state, auto insurance rates can vary substantially. Below, we've listed average cost of full coverage auto insurance for cities across the state.
The most expensive city for car insurance in North Carolina is Newell, while the cheapest is Alexander.
Difference from average
Auto insurance rate changes in North Carolina
The auto industry’s top 10 largest companies reduced rates on average by 1.5% for the 2020 plan year. State Farm led the industry in cutting rates, decreasing auto premiums by 7.7% for all drivers renewing and buying auto insurance policies. Erie is the only other company to decrease its rates in the past year — by 6.3%.
Auto rates have been falling primarily due to the pandemic, as fewer drivers hit the road. This led to record lows for auto claims, allowing insurers to offer cheaper rates across North Carolina.
Premiums written (millions) 2019
Rate Change 2019
Rate Change 2020
|North Carolina Farm Bureau||$641.1||1.6%||0.0%|
Recap of the cheapest car insurance in North Carolina
- Cheapest minimum coverage: North Carolina Farm Bureau
- Cheapest for full coverage: Geico
- Cheapest with one accident: Erie Insurance
- Cheapest with one speeding violation: North Carolina Farm Bureau
- Cheapest with one DUI: North Carolina Farm Bureau
- Cheapest for drivers with poor credit: Progressive
- Cheapest for married drivers: Erie Insurance
- Cheapest for young drivers: State Farm
- Cheapest full coverage for young drivers: Geico
- Cheapest for young drivers with one accident: Erie Insurance
- Cheapest for young drivers with a speeding ticket: Geico
Frequently asked questions
Who has the cheapest car insurance in North Carolina?
We found that North Carolina Farm Bureau has the best average price for minimum car insurance coverage in North Carolina, at $335 per year. And Geico has the best average rate for full coverage, at $910 annually.
What car insurance is required in North Carolina?
North Carolina requires $30,000/$60,000 of bodily injury liability and $25,000 in property damage coverage for all drivers. In addition, you're also required to carry the same amount of uninsured motorist coverage, which pays for your own damage if the other driver is at fault in an accident and they are uninsured. North Carolina is not a no-fault state, so you are not required to get personal injury protection (PIP).
How much does car insurance cost in Charlotte?
Car insurance in Charlotte averages $1,797 per year for a good driver with full coverage. It's the most expensive city in the state for car insurance, and coverage costs about 19% more per year than the average price we found statewide.
What is the best insurer in North Carolina?
The best insurers available in North Carolina are Nationwide, State Farm and Allstate. Customers were most likely to rate these companies as having "excellent" customer service and to say they were "extremely satisfied" with their most recent claim.
We collected thousands of rates from ZIP codes across North Carolina for the largest 10 insurers. We used a sample driver with the following profile:
- 30-year-old man
- Drives a 2015 Honda Civic EX
- Average credit
The base policy for the study was a full-coverage policy with the following limits:
|Bodily liability||$50,000 per person/$100,000 per accident|
|Personal injury protection||$10,000|
|Property damage||$25,000 per accident|
|Uninsured/underinsured motorist bodily injury||$50,000 per person/$100,000 per accident|
|Comprehensive and collision||$500 deductible|
For our minimum-coverage policy, we quoted a policy with the minimum required limits in North Carolina, above.
For other rates analyses (age, credit score, accident history and marriage status) the base policy listed above was alternated to reflect the new driver.
ValuePenguin conducted a survey and asked current policyholders across multiple auto insurance companies about their satisfaction with claims and customer service. In the table, Claim Satisfaction Rating represents the percentage of respondents who were extremely satisfied with their most recent claim experience. The Customer Service Rating represents the percentage of respondents in the study who rated the customer service of their insurer as "excellent."
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.