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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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North Carolina drivers pay an average of $76 per month for car insurance, compared to the national average cost of $150. But cheap car insurance in North Carolina is becoming harder to find, thanks to some big changes in 2025. As of July 1, 2025, the state has some of the highest minimum liability coverage requirements in the country,[1] which will continue to drive up rates.
Increasingly unpredictable weather patterns, from coastal storms to inland flooding, have also led to more frequent and costly car insurance claims.[2] This article breaks down average rates for various driver profiles, coverage options, and how to make sure you’re not overpaying for car insurance in North Carolina.
Erie has the lowest average premiums, with rates at $42 per month.
North Carolina drivers pay an average of $59 per month for liability insurance and $94 for full coverage.
Insurance costs vary dramatically between cities, with drivers in smaller towns like Fontana Dam often paying less than drivers in Charlotte for the same coverage.
Where you live is a big factor to consider when it comes to the cost of auto coverage in North Carolina. Here’s how rates look for different driver types and coverage levels across North Carolina state, according to Compare.com data.
Driver/Coverage Type  | Average Monthly Premium |
|---|---|
| All North Carolina drivers | $76 |
| State-minimum coverage | $59 |
| Full coverage | $94 |
| Teens | $134 |
| Seniors | $63 |
| Clean driving record | $76 |
| Recent ticket | $120 |
| Recent at-fault accident | $125 |
| DUI conviction | $138 |
| Poor credit | $88 |
On average, North Carolinians pay $76 per month for car insurance. State-minimum coverage costs around $59 per month. And adding a teen driver to your policy would cost an average of $134 per month.
Keep in mind these are just ballpark figures. Many factors affect your auto insurance premiums, so your actual rate could be different.
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Like most U.S. states, North Carolina requires every driver to have car insurance. The state’s liability coverage rules have gotten a recent refresh, too.
As of July 1, 2025, you’ll need higher coverage levels to drive legally:
50,000 in bodily injury liability coverage per person (up from $30,000)
$100,000 in bodily injury coverage per accident (up from $60,000)
$50,000 in property damage coverage (up from $25,000)
Uninsured/underinsured motorist coverage matching your liability limits.[3]
While more car insurance means better protection, the state’s higher requirements will likely drive up your premium. Visit the North Carolina Division of Motor Vehicles website for updates.
Even with North Carolina’s higher minimum requirements in 2025, basic insurance coverage might not cut it. One serious accident could eat through those limits fast, leaving you financially exposed and your savings vulnerable.
That’s why most car insurance experts recommend purchasing higher limits to ensure adequate financial protection. And if you’re financing or leasing, lenders typically require comprehensive and collision coverage on top of these state minimums.
Regardless of average rates, you can still save on car insurance. Shopping around for quotes and asking about discounts can help you knock down your bill.
Several insurance companies beat North Carolina’s average rates. Here are the five cheapest car insurance companies in North Carolina, according to Compare.com data.
Company | Average Monthly Premium |
|---|---|
| Erie | $42 |
| Nationwide | $42 |
| GEICO | $48 |
| Travelers | $53 |
| Allstate | $57 |
| Progressive | $58 |
| Direct Auto | $60 |
| Dairyland | $61 |
| Safeco | $62 |
| National General | $64 |
| Liberty Mutual | $68 |
| State Farm | $69 |
Erie is the cheapest car insurance company in North Carolina, with monthly prices averaging just $42.
But your perfect match depends on factors like your age and driving record. Let’s dig into which companies offer the best deals for different kinds of drivers.
The rates from our top five companies give you a good idea of costs. But your actual premium can vary widely, since it’s based on factors such as your age, location, and driving record.
Here’s a closer look at North Carolina insurers offering the lowest rates for different types of drivers and coverage levels, according to Compare.com data.
Driver/Coverage Type | Cheapest Insurer | Insurer’s Average Monthly Premium |
|---|---|---|
| State-minimum coverage | Erie | $42 |
| Full coverage | Erie | $61 |
| Teens | Erie | $74 |
| Seniors | Nationwide | $31 |
| Drivers with a speeding ticket | Nationwide | $59 |
| Drivers with an at-fault accident | Nationwide | $62 |
| Drivers with a DUI | Nationwide | $72 |
| Drivers with excellent credit | Erie | $35 |
| Drivers with poor credit | Nationwide | $50 |
To get the best deal, get quotes from at least three insurance companies. Insurance comparison sites make getting quotes quick and painless, allowing you to see personalized rates from different companies side by side.
Compare personalized quotes from North Carolina’s top insurers.
Your address plays a huge role in your insurance costs, even within the same state. Living in downtown Raleigh comes with different risks than New Bern, for example. More cars on the road means more chances for car accidents. Plus, cars parked in areas with frequent storm damage or higher crime rates typically cost more to insure.
The table below shows the cheapest insurance companies and average rates for North Carolina’s largest cities, according to Compare.com.
City | Citywide Average Monthly Premium | Cheapest Insurer | Insurer’s Average Monthly Premium |
|---|---|---|---|
| Charlotte | $95 | Erie | $53 |
| Raleigh | $80 | Erie | $45 |
| Greensboro | $78 | Erie | $44 |
| Durham | $76 | Erie | $43 |
| Fayetteville | $88 | Erie | $49 |
| Cary | $66 | Erie | $37 |
| Wilmington | $78 | Erie | $44 |
| High Point | $77 | Erie | $43 |
| Gastonia | $88 | Erie | $49 |
| Asheville | $63 | Erie | $35 |
Erie has the lowest rates in Charlotte (the state’s largest city), with premiums averaging $53 per month.
Again, it pays to spend a few minutes comparing quotes on an insurance comparison to see if you can get a cheaper rate with another insurance company.
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You won’t find one best car insurance company that suits every driver. Finding your perfect insurance match in North Carolina is a lot like picking a barbecue joint — what works for someone in Lexington might not work in the eastern half of the state.
We researched dozens of insurance companies to help you find the best coverage for your needs. The three companies below stand out for a combination of average rates, available discounts, customer ratings and reviews, and coverages offered in North Carolina.
Dedicated agents for in-person support
Rideshare coverage available
Claims payouts within 48 hours
No military discount
Accident forgiveness not available
Gap insurance not available
State Farm stands out for its customer service. With local agents in 160 North Carolina cities, the company knows the state inside and out. The insurer also took second place for customer satisfaction in the J.D. Power 2024 U.S. Auto Insurance Study.[4] State Farm also has a remarkably low complaint index, according to the National Association of Insurance Commissioners (NAIC).[5]
Deductible savings bank
PerkShare offers deals on everyday purchases
Loyalty rewards for longtime customers
No military discount
No new car replacement coverage
Low customer service satisfaction
Progressive lets you build a policy that matches your life. As the best North Carolina car insurance company for custom coverage, you can choose from policy options like loan/lease payoff and custom parts and equipment value coverage. It even helps cover vet bills if your pet is hurt in an accident. Progressive also has lots of discounts, including the Snapshot safe driver discount.
User-friendly digital tools
Quick claims resolution
Excellent ratings for customer service
Basic coverage options only
Limited local agent network
Gap insurance not available
GEICO knows how to make car insurance easy and affordable in North Carolina. The company has discounts galore and works with more than 800 groups to offer savings for members and employees. Beyond the usual safe driver and payment discounts, you’ll find perks like military discounts and unique add-ons like mechanical breakdown insurance.
Compare quotes side by side and lock in cheaper rates.
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The easiest way to save a few bucks on your bill is through car insurance discounts. But discount availability varies by state and insurance company.
That said, North Carolina requires insurers to offer the following discounts:
Inexperienced safe driver discount: The discount rewards less-experienced drivers for maintaining a clean driving record. You may qualify for the discount after three full years of driving without accidents or violations.
Credit-based discounts: Insurers can’t use your credit score to cancel coverage, but having a good credit history can qualify you for car insurance discounts.[6]
Car insurance discounts aren’t the only way to keep more cash in your pocket. Let’s look at some smart moves that could help you save even more on your North Carolina car insurance.
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Besides discounts, here are four additional ways to keep your car insurance rates in check:
Pick your car wisely: Your choice of vehicle affects your car insurance rates. Family-friendly vehicles with solid safety ratings often cost much less to insure.
Increase your deductible: Choosing a higher deductible can mean a lower monthly bill. Just make sure you have enough cash to cover expenses if you need to file a claim.
Think about location: If you’re planning a move, ask your agent about rates. Insurance prices can vary by hundreds between neighborhoods — even in the same city.
Shop around often: Compare quotes to make sure you’re not overpaying. What worked last year might not be your best deal now.
Compare personalized quotes and get cheaper rates in minutes.
Before shopping for car insurance in North Carolina, read answers to the most common questions to help you find the best rates in the state.
Erie has the lowest average auto insurance rates in North Carolina, at $42 per month, according to our research. Keep in mind your actual premiums might be different depending on your age, driving history, and location.
North Carolina drivers pay an average of $76 per month for car insurance, according to our data. State-minimum coverage runs about $59 per month, while full coverage costs around $94.
North Carolina car insurance rates are expensive thanks to higher minimum coverage requirements in 2025, car accidents,[7] and rising repair costs.[8]
Nationwide offers the lowest average rates to North Carolina seniors, at just $31 per month, according to our data.
But remember, there’s no one best insurance for every senior driver. The company for you depends on your unique driver profile.
North Carolina’s cheapest car insurance is basic liability coverage, which averages $59 per month, according to our data. It meets the state’s minimum coverage requirements but only protects other drivers — not your own car or medical bills.
It depends. North Carolina’s state average is $76 per month, according to our data. But driving history, vehicle choice, location, and coverage needs all affect how much you pay. For example, a new driver in Charlotte with a new car might pay more than an experienced driver in a smaller town.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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