The Cheapest Auto Insurance in North Carolina in 2023

North Carolina’s car insurance market combines affordability with unique features to meet drivers’ needs across the Tar Heel State. With an average monthly rate of just $81, NC is the sixth-cheapest in the nation for car insurance, according to Compare.com data.

Our research reveals that the best deal typically comes from Erie, with an incredibly low average premium of $50 per month.

The state requires drivers to carry 30/60/25 liability insurance (more on this later) plus uninsured/underinsured motorist coverage. In this guide, we’ll explore rates for different age groups, driving records, and coverage levels to help you find cheap car insurance in North Carolina.

Key Takeaways:

• North Carolina’s top five cheapest insurers have rates well below the state average, with Erie leading the way.
• Young drivers in North Carolina can find coverage starting at $67 per month.
• North Carolina drivers pay up to three times more for their insurance coverage after a DWI.

North Carolina’s Cheapest Car Insurance Companies

The average monthly car insurance rate in the Tar Heel State is an affordable $81. Understanding how insurers set rates can help you save even more.

The table below highlights the top five cheapest car insurance companies in North Carolina, sorted by the cheapest average premium.

At $50 per month, Erie is the cheapest car insurance company in the state when looking at statewide average rates. But keep in mind that the most affordable option may not always be the best car insurance company for your unique situation or coverage needs.

We’ll explore average car insurance rates for different driver demographics in the following sections.

The Average Cost for North Carolina Car Insurance

North Carolina is the sixth-cheapest state for car insurance. As the table below shows, it costs significantly less than neighboring states, Georgia, South Carolina, Tennessee, and Virginia.

The state has a lower population density than other states and fewer urban areas, which contributes to the low rates. Next, you’ll see how rates can vary based on factors like age, driving history, and coverage levels.

Cheapest Car Insurance Rates for State-Minimum Insurance: Erie

Your coverage level plays a big role in how much you pay for car insurance. The cheapest option will typically be a basic liability policy that provides minimum protection for other drivers if you cause an accident. But each state is different when it comes to minimum required limits.

We’ll touch more on exactly how much coverage is required in North Carolina a little later; but first, let’s look at the cheapest companies for state-minimum coverage in North Carolina.

Erie is the most affordable option for basic coverage in North Carolina, with an average monthly premium of just $30. Allied, State Farm, National General, and North Carolina Farm Bureau follow closely behind. Erie policies come with perks, such as first accident forgiveness, windshield repair, pet injury coverage, and roadside assistance.

Cheapest Car Insurance Rates for Full-Coverage Insurance: Erie

Full coverage typically provides liability, comprehensive, and collision coverage under one policy. It covers accidents, theft, and other damages, but that extra layer of protection means it costs quite a bit more than state-minimum liability policies.

Let’s take a look at which companies offer the cheapest full-coverage rates in the Tar Heel State.

For full coverage, Erie is once again the cheapest choice. But State Farm, North Carolina Farm Bureau, Travelers, and GEICO also boast affordable average rates.

Besides offering astonishingly low prices, Erie allows you to add new car replacement and rental car coverage to your policy for maximum protection.

Compare North Carolina Auto Insurance Rates by Age

Age is a crucial factor in determining your car insurance rates. Younger drivers often pay higher premiums since they don’t have much driving experience and are statistically more likely to get into accidents.

To better understand how age impacts insurance costs, let’s dive into specific age brackets and look at the cheapest options for each group.

Cheapest car insurance for North Carolina teens: Erie

Young drivers are the most expensive group to insure for a few reasons.

“Less experienced drivers are considered riskier to insure, while experienced drivers are less likely to have accident claims,” says Jasmine Walker, owner of Brightway Insurance Agency in Charlotte, North Carolina.

But she adds, “Car insurance decreases incrementally for each year of driving experience up to age 25, assuming the driving history is good.”

Let’s see which companies have the best prices for NC teens, based on data for 18-year-old drivers.

We found that Erie has the lowest quotes, but it’s worth noting the company doesn’t offer a college student discount for North Carolina drivers. State Farm charges just $6 more per month for coverage, making it another excellent choice for cheap car insurance for teen drivers.

Cheapest car insurance for North Carolina seniors: Erie

Age and experience can pay off when it comes to auto insurance. After all, you’ll enjoy some of the most affordable car insurance rates as you approach retirement age. Plus, you can qualify for even lower premiums if you don’t drive as much as you used to.

The average rates in the table below show what a 65-year-old driver might pay for coverage in North Carolina.

Senior drivers in North Carolina — like many of the groups we already mentioned — tend to find the best rates with Erie. The company offers a discount for reduced mileage and a bundling discount if you insure more than one vehicle or get your homeowners insurance from Erie.

Compare North Carolina Auto Insurance Rates by Driving Record

Your driving record is undeniably one of the most critical factors that affect your auto insurance rates. Insurance providers look at your past driving history to assess your risk level as a driver.

Depending on your record, you may either benefit from lower rates or face higher premiums.

Let’s explore how different driving records can impact North Carolina auto insurance rates.

Cheapest car insurance for good drivers in North Carolina: Erie

If you can avoid accidents and tickets, you’ll have access to some of the best car insurance rates around. However, even good drivers can see different quotes depending on the insurance company.

The table below shows the five cheapest companies for North Carolina drivers with clean records.

Erie is yet again a top choice if you have a driving record free of accidents and tickets. It’s a great option because it offers first-accident forgiveness — you won’t see your rates go up the first time you have a mishap on the road.

State Farm is another solid option, especially for full-coverage policies. The best way to find the cheapest company for you is to compare auto insurance quotes from as many companies as possible.

Cheapest car insurance in North Carolina after a ticket: Erie

A ticket can have a big impact on how much you pay for car insurance. Your rates could jump anywhere from 29% to 57% on average, so shopping around and comparing rates is important.

The table below shows the cheapest car insurance companies for drivers with one speeding ticket.

Erie is the most affordable option if you have a ticket, whether you’re looking for minimum protection or full coverage — and Erie Rate Lock can help keep your prices stable. Plus, even if you have a ticket, you can take advantage of the company’s diminishing deductible option and save up to $500 if you don’t file a claim.

Cheapest car insurance in North Carolina after an accident: Erie

You’ll likely see a higher car insurance bill after an accident. A single car accident can raise your premiums as much as 70%, according to Compare.com data.

Below are the cheapest insurance rates for North Carolina drivers with one at-fault accident.

If your driving history includes an at-fault accident, your cheapest option might be Erie. You can take advantage of first-accident forgiveness and keep your lower rate if you’ve had a policy with Erie for at least three years.

Cheapest car insurance in North Carolina after a DWI: National General

Driving while impaired (DWI) is a severe offense in North Carolina. The state can require you to complete a DWI Substance Use Assessment before you can get your license back. You’ll also see higher insurance rates — some insurers charge three times more for coverage after a DWI.

But that doesn’t mean you’re stuck with sky-high rates. Let’s take a look at the cheapest companies in North Carolina for drivers with a DWI on their record.

Auto insurance companies can cancel your policy, even if you’re a first-time DWI offender. But whether you need a new policy or want to shop around for the best rate, National General can help. It has the cheapest average quotes in North Carolina for drivers with a DWI on their record.

The Cheapest Cities for Car Insurance in North Carolina

Car insurance costs vary by city and ZIP code. Rates depend on factors like population, crime rates, and traffic statistics. Generally, larger cities tend to have higher insurance prices because more traffic on the road increases the risk of accidents.

Here’s what drivers pay for coverage in cities all across North Carolina.

Asheville, Burlington, Elizabeth City, and Thomasville have the cheapest auto insurance, with monthly rates around the $40 mark. Charlotte — the state’s largest city — has rates that are 69% more than Asheville. Drivers in Raleigh (the second-largest city) pay 44% more, while drivers in the third-largest city of Greensboro pay 59% more than those in North Carolina’s cheapest areas, according to Compare.com data.

5 Ways to Get Cheap Car Insurance in North Carolina

Lowering your car insurance costs is easier than you might think. Here are five tips to help you keep more money in your pocket.

• Decrease your coverage: Review your policy to see if you’re paying for coverage you don’t need. For example, you might be able to drop roadside assistance if you get it through an auto club or your cell phone company.
• Raise your deductible: Higher deductibles mean you’ll pay more out of pocket in case of an accident, but it can lead to lower monthly premiums, saving you money in the long run (if you remain accident-free).
• Bundle policies: If you have multiple insurance policies — such as homeowners or renters insurance — consider bundling them with one company to qualify for a discount.
• Keep your driving record clean: A good driving history with no accidents or traffic violations can make you eligible for discounts and lower insurance rates.
• Compare quotes: Car insurance rates can change over time, so it’s essential to shop around. Using the best car insurance comparison sites can help even if you’re already insured.

North Carolina Auto Insurance Requirements

The North Carolina Division of Motor Vehicles requires drivers to have liability and uninsured/underinsured motorist coverage from an in-state auto insurance company. You’ll need to buy 30/60/25 coverage, which includes $30,000 in bodily injury liability per person, $60,000 in bodily injury per accident, and $25,000 in property damage liability.

Penalties for driving without auto insurance in North Carolina

“Driving without insurance in North Carolina is considered a misdemeanor, punishable with fines and potential jail time,” says Walker. “The state may suspend your driver’s license, charge fines ranging from $50 to $150, and impose jail time.”

You must also pay a $50 restoration fee to reestablish your vehicle registration.

SR-22 auto insurance in North Carolina

SR-22 auto insurance isn’t a policy type you can buy. Instead, SR-22 refers to the form number of a certificate of financial responsibility that some states require high-risk drivers to file. However, North Carolina doesn’t require an SR-22 certificate from drivers.

If you’re moving to North Carolina from another state and need SR-22 coverage, check with your insurance agent to make sure you fulfill your legal obligations.

North Carolina Auto Insurance FAQs

We’ve compiled answers to some of the most commonly asked questions by North Carolina drivers like you.

Who is the cheapest auto insurance company in North Carolina?

Erie is the cheapest auto insurance company in North Carolina, with an average monthly premium of $50. Insurers personalize rates based on many factors, so the company with the lowest average cost might not be your cheapest option.

How much is car insurance in North Carolina?

The average monthly car insurance rate in North Carolina is $81. It’s the sixth-cheapest state in the U.S., with average quotes that fall 37% below the national average.

Which city has the cheapest car insurance in North Carolina?

Asheville drivers pay the least for car insurance of all the cities in the Tar Heel State, with an average liability premium of $39 per month. Burlington, Elizabeth City, and Thomasville average just over $40 per month for auto insurance.

How much car insurance is required in North Carolina?

North Carolina requires drivers to have liability coverage with limits of 30/60/25, meaning $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, and $25,000 in property damage liability. Your policy must also include uninsured/underinsured motorist coverage.

What happens if you get caught driving without insurance in North Carolina?

Driving without insurance in North Carolina is a Class 3 misdemeanor, according to North Carolina statute § 20-313. If you’re convicted, penalties may include fines, jail time, and a license suspension. You’ll also need to pay a $50 fee to reinstate your vehicle registration.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes 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 quotes listed in this article have been gathered 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 drivers with insight into how auto insurance companies determine their premiums.

Sources

1. U.S. Census Bureau, “Population Density of the 50 States, the District of Columbia, and Puerto Rico: 1910 to 2020,” Accessed July 24, 2023
2. Iowa State University, “Urban Percentage of the Population for States, Historical,” Accessed July 24, 2023
3. Centers for Disease Control and Prevention, “Teen Drivers and Passengers, Get the Facts,” Accessed July 24, 2023
4. North Carolina Division of Motor Vehicles, “Insurance Requirements,” Accessed July 26, 2023