North Carolina car insurance quick facts
Minimum liability requirements
30/60/25
Average annual car insurance cost according to the NAIC
$870.87
At-fault state
In at fault states, the driver who caused the accident pays for damages.
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Compare car insurance in North Carolina
Get the cheapest car insurance in North Carolina for 2021
North Carolina drivers pay an average of $870.87 per year for car insurance according to the National Association of Insurance Commissioners (NAIC), that’s about $72.57 per month. North Carolina drivers pay about 27% less than the countrywide national average of $1,189.64.
The NAIC takes into account all car insurance policies within the state such as drivers who select only state minimum coverage, as well as policies that include various levels of comprehensive and collision coverage. Because car insurance rates are influenced by personal factors, you could find yourself paying significantly less.
North Carolina state minimum car insurance requirements
Drivers in North Carolina are required to carry a minimum amount of liability coverage to legally drive. You may see it written as 30/60/25, but we’ll break down what that means.
North Carolina bodily injury liability
- $30,000 bodily injury liability per person
- $60,000 bodily injury per accident
North Carolina requires $30,000 in bodily injury liability per person and $60,000 of bodily injury per accident. That’s a tad higher than most states’ minimum requirement for this coverage of 25/50.
This means $30,000 is the most your insurer will pay for a single person injured by you in an at-fault accident. And $60,000 is the maximum amount your insurer will pay if there is more than one person injured by you in an at-fault accident. Any costs outside of your bodily injury limit are required to come out of your pocket.
North Carolina property damage liability
- $25,000 property damage liability
North Carolina requires drivers to carry $25,000 of property damage liability to legally drive. This is the highest required property damage limit across the US, but it’s common among states.
This means $25,000 is the maximum amount your car insurance company will pay towards damages you cause to another person’s car or property, such as repairs to a car, fence or building. You’ll have to pay out of pocket for any costs beyond your property damage liability limit.
North Carolina uninsured or underinsured motorist
- $30,000 uninsured and underinsured motorist bodily injury per person
- $60,000 uninsured and underinsured motorist bodily injury per accident
- $25,000 uninsured and underinsured motorist property damage
North Carolina requires all drivers to carry $30,000 of uninsured motorist bodily injury per person, $60,000 uninsured motorist bodily injury per accident and $25,000 in uninsured motorist property damage to legally drive. Near half of the states across the US require some sort of uninsured motorist coverage, though some other states let you opt-out.
This coverage protects you if you get hit by an uninsured or underinsured driver. It pays for your car’s damage or medical bills to you and your passengers.
Finder tip: North Carolina state minimum coverage isn’t enough
These state-mandated requirements are the lowest amount of coverage you need to legally drive in North Carolina, but may fall short if you’re in a major accident. To avoid high out-of-pocket costs after an accident, consider raising your liability limits by balancing coverage, your budget and what you can afford to pay out of pocket for certain damage.
7 factors that affect car insurance rates in North Carolina
Factors are characteristics specific to you that car insurance companies use to set how much you’ll pay for car insurance. The less risky each of your factors is the less you pay, the riskier you are the more you’ll pay. We’ll break down North Carolinian’s rating factors to keep in mind.
| Factor | How it affects your rates |
|---|---|
 Age | How old you are is a top factor in determining your car insurance rates. With each passing year, you earn more experience on the road. More experience can equal cheaper rates. Teen drivers pay the most, but rates begin to level off around your 20’s with drivers over 50 paying the least. |
 Gender | North Carolina is one of seven states that bans the use of gender in calculating car insurance premiums. Insurers rely on factors such as age, location, driving record and what type of car you drive. |
 Location | Where you live affects your rates, including where you park your car. High theft rates, high traffic and a high number of uninsured drivers could mean higher rates. North Carolina vehicle theft rates stand at 193.6 vehicle thefts per 100,000 inhabitants, according to the FBI’s most recent report on vehicle theft rates. That’s well below the national average of 246 vehicle thefts per 100,000 inhabitants. As for uninsured drivers, 7.4% of Pennsylvanians on the road are uninsured. That’s on the lower end for vehicle theft according to Insurance Information Institute, with the national average standing at 12.6%. |
 Driving Record | The better your driving record, the lower your premium. If you’re in an at-fault accident you could see rates increases from 20% to 50%. And DUI’s in North Carolina can increase your rate by around 112%, that’s one of the highest increases we’ve seen across the US. These types of violations typically stay on your record for about three years. |
 Vehicle and mileage | Your car’s make, model and trim directly affect how much you’ll pay for car insurance. Things like its cost, safety ratings, the likelihood of theft and sportiness all help insurers determine its cost to insure. Safer and cheaper vehicles score the lowest rates, with luxury vehicles with higher repair costs resulting in higher premiums. And, the more you’re on the road, the more at-risk you are to get in an accident, which means higher premiums. However, according to the Bureau of Transportation, Pennsylvanians drive an average of 36.4 miles per day, that’s slightly above the average across the US of 36.1 miles per day. |
 Credit score | Your credit score is included in your credit-based insurance score which insurers use to help calculate rates. According to the Insurance Information Institute, there is a strong correlation between your insurance score and claims filings. A good credit-based insurance score could mean lower rates. North Carolinians have protections under state laws that regulate the use of your credit history when issuing car insurance policies. Credit score can be used to set your initial rates and to lower your rates at renewal. However, they can’t be used as a sole reason to terminate your policy or increase your rates higher than rates approved by the North Carolina Department of Insurance. |
 Coverage | The more coverage you get and the higher limits you choose, the more protection you’ll have and the more you’ll pay in monthly premiums. And, if you opt for full coverage car insurance that includes comprehensive and collision, the amount of your deductible weighs into your costs too, higher deductibles mean lower monthly premiums. |
Most popular North Carolina auto insurance companies list
| Company | Direct premiums written (billions) | Market share |
|---|---|---|
| State Farm | $946,301 | 14.9% |
| Geico | $780,564 | 12.3% |
| Nationwide | $689,089 | 10.8% |
| National General | $645,503 | 10.1% |
| North Carolina Farm Bureau | $612,305 | 9.6% |
| Allstate | $518,374 | 8.1% |
| USAA | $479,938 | 7.5% |
| Progressive | $402,262 | 6.3% |
| Erie | $249,828 | 3.9% |
| Liberty Mutual | $179,360 | 2.8% |
Car insurance guides by city
Compare rates, requirements and driving tips with car insurance guides for your city.
Which city has the cheapest car insurance in North Carolina?
Of North Carolina’s largest cities, Greensboro has the cheapest rates and Fayetteville has the most expensive car insurance rates. Fayetteville drivers could face rates 3 times more than Greensboro drivers.
Car insurance quotes in Charlotte
| Company | Annual car insurance rate |
|---|---|
| Allstate | $1119 |
| Metromile | $597 |
| Progressive | $506 |
| National general | $1024 |
| Geico | $826 |
Car insurance quotes in Raleigh
| Company | Annual car insurance rate |
|---|---|
| Allstate | $1477 |
| Metromile | $765 |
| Progressive | $647 |
| National general | $1167 |
| Geico | $830 |
Car insurance quotes in Concord
| Company | Annual car insurance rate |
|---|---|
| Allstate | $1235 |
| Metromile | $669 |
| Progressive | $576 |
| National general | $1153 |
| Geico | $918 |
Car insurance quotes in Greensboro
| Company | Annual car insurance rate |
|---|---|
| Allstate | $979 |
| Metromile | $536 |
| Progressive | $453 |
| National general | $977 |
| Geico | $806 |
Car insurance quotes in Fayetteville
| Company | Annual car insurance rate |
|---|---|
| Allstate | $1512 |
| Metromile | $803 |
| Progressive | $667 |
| National general | $1497 |
| Geico | $924 |
Compare car insurance providers in North Carolina
Temporary car insurance in North Carolina
You can buy temporary auto insurance in this state. However, you might run into issues finding temporary coverage from standard providers. So if you need this kind of coverage, you should be open to alternative options like going with a lesser-known provider or having some unconventional policy terms.
SR-22 insurance in North Carolina
You are not required to file an SR-22 form if you’re a DWI offender in North Carolina. If you move to North Carolina with an SR-22 from another state, you’ll probably need to maintain your SR-22 requirements.
Bottom line
With annual insurance costs typically falling below the national average and laws that make it very difficult and risky to drive without liability coverage, North Carolina is a place where you’ll most likely want to have a conventional car insurance policy.
To learn more about this topic, from rules and regulations to discounts on premiums, visit our comprehensive guide to car insurance.
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