Best Car Insurance in North Carolina: Car insurance is a crucial part of owning and driving a vehicle in North Carolina. Finding the right policy ensures not only that you’re following the law but also that you’re financially protected in case of an accident.
But with so many options, how do you pick the best car insurance in North Carolina? In this guide, we’ll dive into the types of coverage you need, factors that affect your premiums, and tips for getting a free quote to make the process easier and stress-free.
Why Car Insurance is Mandatory in North Carolina
In North Carolina, driving without insurance isn’t just risky – it’s illegal. The state requires all drivers to carry a minimum level of car insurance to ensure that in case of an accident, there’s enough coverage to handle damages and injuries. The minimum requirements are:
- $30,000 for bodily injury per person.
- $60,000 for total bodily injury per accident.
- $25,000 for property damage.
Failing to meet these requirements can lead to severe penalties, including fines, license suspension, and even vehicle impoundment.
Types of Car Insurance Available in North Carolina
Choosing the best car insurance starts with understanding the different types of coverage available:
Liability Coverage
This is the basic coverage required by law in North Carolina. It covers bodily injuries and property damage that you may cause to others in an accident. However, it doesn’t cover your own vehicle or injuries.
Collision Coverage
Collision coverage protects you if your car is damaged in a collision, regardless of fault. This is particularly useful if you have a newer or more expensive vehicle.
Comprehensive Coverage
Comprehensive insurance covers damage from incidents other than collisions, like theft, vandalism, or natural disasters.
Uninsured/Underinsured Motorist Coverage
With many drivers on the road either uninsured or underinsured, this coverage ensures you’re protected if you’re hit by one of them.
Medical Payments Coverage
This covers medical expenses for you and your passengers after an accident, regardless of who is at fault.
Factors That Affect Car Insurance Rates in North Carolina
The cost of your car insurance in North Carolina depends on several factors:
Driving Record
A clean driving record can save you money, while accidents and tickets can significantly increase your premium.
Age and Gender
Younger drivers, especially teenagers, often pay higher premiums. Gender also plays a role, with men typically paying more.
Location
Urban areas tend to have higher rates due to higher accident risks compared to rural areas.
Vehicle Type
Luxury or sports cars often have higher insurance rates due to the cost of repairs and higher theft rates.
Credit Score
Many insurance companies use credit scores to determine how financially responsible you are. A better credit score often leads to lower premiums.
How to Choose the Best Car Insurance in North Carolina
When it comes to choosing the right insurance, it’s essential to:
Compare Quotes
The best way to ensure you’re getting the best deal is by comparing multiple quotes from different providers. Each company weighs factors differently, which means you can find significant variations in pricing.
Check for Discounts
Most insurance companies offer a range of discounts, from bundling home and auto insurance to safe driving discounts. Be sure to ask about any available discounts when shopping for a policy.
Customer Service and Claims Handling
Don’t just look at the price. A company with great customer service and efficient claims handling can save you time and stress when you need it most.
Getting a Free Quote: How It Works
Getting a free car insurance quote in North Carolina is easy. Most insurance companies offer online tools where you can input your information and get an estimate in minutes. You’ll need to provide:
- Vehicle information (make, model, year).
- Driving history.
- Coverage preferences.
- Personal details like age and location.
The key to finding the best rate is to compare at least three different quotes.
Best Car Insurance Companies in North Carolina
Below are the top-rated car insurance companies providing reliable coverage in the state, along with a summary of their offerings, customer service ratings, and pricing information.
1. State Farm
State Farm is consistently ranked as one of the best car insurance companies in North Carolina due to its affordable rates and excellent customer service. They offer a wide range of coverage options, including liability, collision, comprehensive, and uninsured motorist protection. With multiple discounts for safe driving, bundling policies, and good student discounts, State Farm is a top choice for budget-conscious drivers.
- Customer Service Rating: 4.5/5
- Average Annual Premium: $1,325
2. GEICO
GEICO is known for its competitive pricing and user-friendly digital tools. It offers a variety of coverages, from basic liability to more comprehensive options, making it a versatile choice for North Carolina drivers. GEICO’s mobile app and 24/7 customer support make managing your policy and filing claims easy.
- Customer Service Rating: 4.4/5
- Average Annual Premium: $1,250
3. Nationwide
Nationwide provides a wide range of coverage types, including roadside assistance, accident forgiveness, and vanishing deductible options. The company is known for its flexible policies and commitment to customer satisfaction. Nationwide also offers various discounts for safe driving, multiple vehicles, and bundling home and auto insurance.
- Customer Service Rating: 4.3/5
- Average Annual Premium: $1,400
4. Progressive
Progressive is a well-known insurance provider offering robust coverage options like liability, collision, and comprehensive coverage. Progressive also stands out for its “Name Your Price” tool, which allows you to find policies that match your budget. They provide excellent customer support and have a reputation for fast and easy claims processing.
- Customer Service Rating: 4.2/5
- Average Annual Premium: $1,350
5. Allstate
Allstate is highly rated for its extensive coverage options and top-tier customer service. In addition to standard coverage, Allstate offers add-ons like rental reimbursement and sound system coverage. They also provide accident forgiveness and safe driving discounts. With a strong presence in North Carolina, Allstate is a reliable choice for many drivers.
- Customer Service Rating: 4.3/5
- Average Annual Premium: $1,500
6. North Carolina Farm Bureau
North Carolina Farm Bureau is a regional insurance provider with a strong reputation for personalized service and competitive rates. They offer standard coverage options along with specialized services for members. If you prefer working with a local provider, North Carolina Farm Bureau is a trusted name in the state.
- Customer Service Rating: 4.5/5
- Average Annual Premium: $1,200
7. USAA
For military members and their families, USAA is one of the top insurance providers in North Carolina. Known for outstanding customer service and competitive rates, USAA offers various coverage types, including liability, collision, and comprehensive. Their loyalty programs and extensive discounts for military personnel make them a popular choice for veterans and active-duty service members.
- Customer Service Rating: 4.9/5
- Average Annual Premium: $1,050
Choosing the best car insurance company in North Carolina depends on your specific needs, budget, and driving habits. While companies like State Farm, GEICO, and USAA offer affordable rates and exceptional service, it’s important to compare multiple providers to find the coverage that fits your needs.
Cheap auto insurance in North Carolina for minimum coverage
Those looking for cheap car insurance often lean towards minimum liability coverage. This is simply the lowest amount of coverage that you can carry while remaining legal. While price is an important consideration, it’s not the best option to forego important coverage, as this can leave you and your vehicle at risk. Have a look at the table below to get a sense of where to start if looking for affordable coverage in North Carolina.
Cheapest carriers for Minimum Coverage
| Company | Avg. Annual Premium |
|---|---|
| North Carolina Farm Bureau | $350 |
| State Farm | $365 |
| Erie | $378 |
| GEICO | $434 |
| Progressive | $482 |
| Nationwide | $575 |
| Allstate | $685 |
Cheap auto insurance in North Carolina with bad credit
Credit history is a major factor in determining how much you pay for car insurance, at least in most states. Most carriers equate a poor credit history with high-risk drivers, meaning you could pay more for your policy. On average, North Carolina drivers with poor credit pay around $1,573 per year, 56% more than those with exceptional credit. Have a look at some common rates by credit tier below.
North Carolina Bad Credit Car Insurance Rates
| Company | Avg. Annual Premium |
|---|---|
| Erie | $1,130 |
| Progressive | $1,192 |
| North Carolina Farm Bureau | $1,387 |
| GEICO | $1,401 |
| Nationwide | $1,996 |
| State Farm | $2,112 |
| Allstate | $2,873 |
Cheap auto insurance in North Carolina with an at-fault accident
Driving history plays a big part in how much you pay for insurance coverage. Those with a recent at-fault accident will almost definitely see higher rates, as insurers will see you as being higher risk. On average, an at-fault accident can cause car insurance rates to increase to as much as $1,843 per year.
Safe driver discounts
In addition to having a cheaper premium, some companies offer a safe driving discount. While the amount varies based on your company, it can range between 5 and 10%.
North Carolina At-Fault Rates
| Company | Avg. Annual Premium |
|---|---|
| North Carolina Farm Bureau | $1,302 |
| State Farm | $1,414 |
| Erie | $1,504 |
| Progressive | $1,810 |
| GEICO | $2,008 |
| Nationwide | $2,495 |
| Allstate | $3,634 |
Cheap auto insurance for young drivers in North Carolina
Drivers between the ages of 16 and 25 pay much high car insurance rates generally. However, the highest rates are often paid by those aged 16 to 19. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. In North Carolina, teen drivers pay especially high rates: $2,585 per year — 142% more than the state average.
North Carolina Teen Rates
| Company | Avg. Annual Premium |
|---|---|
| State Farm | $1,550 |
| North Carolina Farm Bureau | $1,834 |
| Erie | $2,050 |
| GEICO | $2,478 |
| Progressive | $2,542 |
| Nationwide | $3,647 |
| Allstate | $3,955 |
North Carolina auto insurance rate by violation
In North Carolina, a bad driving record will cause your rates to skyrocket. If you receive a ticket, your auto insurance premiums may get more expensive. That amount depends on the specific citation, your insurance company’s pricing strategy, and local insurance regulations. That’s why tickets may have a different impact on insurance in your state compared to the national average.
See below average auto insurance rates in North Carolina after some common violations.
North Carolina Violations table
| Accident/Violation | Avg. Annual Premium | % Rate Increase | $ Rate Increase |
|---|---|---|---|
| None | $1,148 | 0% | $0 |
| One Med/PIP claim | $1,148 | 0% | $0 |
| Not-at-fault accident | $1,168 | 2% | $20 |
| One comp claim | $1,191 | 4% | $43 |
| Two Med/PIP claims | $1,191 | 4% | $43 |
| Two comp claims | $1,229 | 7% | $81 |
| Failure to show documents | $1,359 | 18% | $212 |
| Child safety restraint | $1,502 | 31% | $354 |
| Failure to wear a seat belt | $1,502 | 31% | $354 |
| Driving without lights | $1,502 | 31% | $354 |
| Cell phone violation | $1,582 | 38% | $435 |
| Texting while driving | $1,582 | 38% | $435 |
| Speeding 6 – 10 MPH over limit | $1,600 | 39% | $453 |
| Driving with expired registration | $1,602 | 40% | $455 |
| Failure to yield | $1,637 | 43% | $489 |
| Driving too slowly | $1,637 | 43% | $489 |
| Operating a vehicle without permission | $1,637 | 43% | $489 |
| Illegal turn | $1,637 | 43% | $489 |
| Wrong way/wrong lane | $1,637 | 43% | $489 |
| Failure to stop at a red light | $1,637 | 43% | $489 |
| Open container | $1,637 | 43% | $489 |
| Speeding in school zone | $1,645 | 43% | $497 |
| At-fault accident – $1000-$2000 | $1,658 | 45% | $511 |
| At-fault accident – less than $1000 | $1,658 | 45% | $511 |
| In 65 MPH zone | $1,747 | 52% | $599 |
| Speeding 11 – 15 MPH over limit | $1,747 | 52% | $599 |
| Speeding 21 – 25 MPH over limit | $1,754 | 53% | $607 |
| Speeding 16 – 20 MPH over limit | $1,754 | 53% | $607 |
| Improper passing | $1,783 | 55% | $635 |
| Following too closely | $1,797 | 57% | $649 |
| At-fault accident – greater than $2000 | $1,928 | 68% | $781 |
| Passing school bus | $2,195 | 91% | $1,047 |
| Reckless driving | $2,215 | 93% | $1,068 |
| Driving with a suspended license | $3,429 | 199% | $2,281 |
| Leaving scene of an accident/hit and run | $4,819 | 320% | $3,671 |
| Refusal to submit to a chemical test | $4,875 | 325% | $3,727 |
| DUI | $4,888 | 326% | $3,741 |
| Racing | $4,971 | 333% | $3,823 |
North Carolina DUI laws
A DUI offense in North Carolina can increase your annual car insurance premium to an average of $4,888. That’s 102% more than the national average rate hike after a DUI. Finding affordable auto insurance in the wake of a DUI violation isn’t simple. In fact, a DUI often brings about a bigger premium increase than any single road violation — more than an at-fault accident, racing, or reckless driving.
Low-cost car insurance after a DUI in North Carolina
Those with a DUI or DWI violation in North Carolina must consider insurance choices carefully. Auto insurance premiums following a DUI can vary substantially by insurer. For example, the least expensive car insurance company with a DUI in North Carolina, North Carolina Farm Bureau, has an annual average rate that is 27% less than the statewide average insurance rate with a DUI. The second-cheapest insurer for auto insurance after a DUI in North Carolina is State Farm, while the priciest firm is Allstate, with prices 66% above average.
North Carolina Car Insurance Rates with a DUI
| Company | Avg. Annual Premium |
|---|---|
| North Carolina Farm Bureau | $3,571 |
| State Farm | $3,970 |
| Erie | $4,171 |
| Progressive | $5,013 |
| GEICO | $5,256 |
| Nationwide | $6,005 |
| Allstate | $8,107 |
Rates by city
Car insurance companies calculate your rate based on many factors, the location of the vehicle being an important one. The cheapest car insurance is found in Alexander, North Carolina, and the most expensive in Newell, North Carolina.
Have a look at the table below to see average car insurance costs in some of North Carolina’s biggest cities.
North Carolina Biggest Cities car insurance average rates
| City | Avg. Annual Premium |
|---|---|
| Winston-Salem | $1,055 |
| Durham | $1,138 |
| Greensboro | $1,158 |
| Raleigh | $1,159 |
| Charlotte | $1,318 |
Car insurance price trends in North Carolina
In North Carolina, average annual auto insurance costs increased by $56 in the past year. A typical North Carolina driver pays an average of $1,067 per year.
The recent pricing trend in North Carolina leans toward slightly more expensive car insurance costs. Between 2021 and 2018, rates went up by an average of around $25 each year. At the same time, car insurance rates across the United States have jumped in the past few years, jumping from $1,470 in 2018 to $1,529 in 2021.
| Year | Avg. Annual Premium — Texas | Yearly Change — Texas | Avg. Annual Premium — US | Yearly Change — US |
|---|---|---|---|---|
| 2021 | $1,067 | $56 | $1,529 | $46 |
| 2020 | $1,011 | $8 | $1,483 | -$61 |
| 2019 | $1,003 | $35 | $1,544 | $74 |
| 2018 | $968 | -$828 | $1,470 | $32 |
| 2017 | $1,796 | $234 | $1,437 | $69 |
| 2016 | $1,562 | -$323 | $1,368 | $88 |
| 2015 | $1,885 | $216 | $1,280 | $51 |
| 2014 | $1,669 | $155 | $1,229 | $34 |
| 2013 | $1,514 | -$63 | $1,195 | -$80 |
| 2012 | $1,577 | $323 | $1,276 | $82 |
Tips for Lowering Your Car Insurance Premium in North Carolina
If you’re looking for ways on how to lower car insurance in North Carolina, there are several strategies you can use to reduce your premiums and save money. By following these actionable tips, you’ll be able to keep your insurance costs manageable while still getting the coverage you need.
1. Bundle Your Insurance Policies
Many insurance companies offer significant discounts if you bundle multiple types of coverage, such as combining your auto and home insurance. This strategy can help you secure a lower rate on both policies, maximizing savings across the board. Be sure to ask your provider about their bundling options to see how much you can save.
2. Maintain a Clean Driving Record
One of the most effective ways to lower your car insurance premium is by maintaining a clean driving record. Avoiding accidents, traffic tickets, and other violations keeps your insurance risk lower, which often translates to a reduced premium. Safe driving not only keeps you and others safe but also puts more money back in your pocket.
3. Improve Your Credit Score
Your credit score plays a crucial role in determining your car insurance rate. In North Carolina, insurers can consider your credit score when calculating your premium. By improving your credit score through responsible financial habits—such as paying bills on time and reducing debt—you may qualify for a lower premium.
4. Take Advantage of Safe Driving Discounts
Many North Carolina insurers offer discounts for safe drivers. These discounts often reward drivers who go accident-free for a certain number of years. You may also qualify for telematics programs, which use a mobile app or a device in your car to monitor your driving habits. If you maintain safe driving behaviors like smooth braking and staying under the speed limit, you could earn significant savings.
5. Opt for a Higher Deductible
Raising your deductible—the amount you pay out of pocket before your insurance kicks in—can lower your monthly premium. However, ensure that the deductible is an amount you can afford to pay in the event of an accident. This strategy works best for drivers with a history of safe driving who are unlikely to file claims frequently.
6. Look for Multi-Car Discounts
If your household has more than one vehicle, consider insuring all of them under the same policy. Many insurers offer multi-car discounts, which can reduce the overall premium for covering multiple cars. It’s a straightforward way to save, especially if everyone in the household is a safe driver.
7. Enroll in Defensive Driving Courses
Completing a defensive driving course can not only make you a safer driver but also qualify you for a discount. Many insurers in North Carolina offer reduced premiums for drivers who complete approved defensive driving programs. This is an easy way to lower your rate while also honing your driving skills.
8. Consider Usage-Based Insurance
If you don’t drive often, you might benefit from a usage-based insurance plan, sometimes called pay-as-you-go insurance. These policies base your premium on how much and how safely you drive. By driving less, you may significantly reduce your insurance costs, making it a great option for occasional drivers.
9. Ask About Other Discounts
Many North Carolina insurers offer additional discounts that you may not be aware of, such as:
- Good student discounts for young drivers with good grades.
- Military discounts for active or retired service members.
- Loyalty discounts for staying with the same insurer for a long period.
Always ask your insurance provider about any discounts that may apply to you.
Remember to review your policy annually and ask your insurer about available discounts to ensure you’re always getting the best deal.
Comparing Car Insurance Quotes in North Carolina
With various insurance providers offering different plans, comparing car insurance quotes can save you money while ensuring you have adequate protection.
Here’s a step-by-step guide to effectively compare car insurance quotes in North Carolina:
1. Gather Multiple Quotes
The first step is to collect quotes from multiple insurers. This gives you a baseline to compare costs and coverage. Utilize online comparison tools, visit local insurance agents, or check company websites to obtain quotes. Ensure that each quote is for the same coverage limits so you can compare apples to apples.
2. Evaluate Coverage Options
Make sure you’re looking at similar coverage types when comparing quotes. Consider the following:
- Liability Coverage: This is required in North Carolina and covers damages if you’re at fault in an accident. Compare limits to ensure you’re not underinsured.
- Comprehensive and Collision Coverage: These cover damages to your own vehicle. Check if it’s included in the quotes and whether it’s worth the extra cost based on your vehicle’s value.
- Uninsured/Underinsured Motorist Coverage: Since not all drivers carry adequate insurance, this can protect you in case of an accident with an underinsured driver.
3. Check Deductibles
The deductible is the amount you pay out of pocket before your insurance kicks in. Higher deductibles often result in lower premiums, but you should only choose a deductible you can afford to pay in the event of a claim.
4. Review Additional Features
Some car insurance policies offer add-ons that might be valuable, such as:
- Roadside Assistance: Helps cover expenses like towing and tire changes.
- Rental Car Reimbursement: Covers the cost of a rental car while your vehicle is being repaired after an accident.
- Accident Forgiveness: Prevents your rates from increasing after your first at-fault accident.
Car Insurance Comparison Checklist
Use this checklist when evaluating car insurance quotes:
- Compare liability limits: Does the policy meet or exceed North Carolina’s minimum requirements?
- Review comprehensive and collision coverage: Is your vehicle’s value worth the extra premium for this protection?
- Check deductibles: Are you comfortable with the out-of-pocket cost before insurance covers the rest?
- Evaluate optional coverages: Are roadside assistance or rental car reimbursements included or offered at a reasonable rate?
- Discounts: Are there discounts for safe driving, bundling policies, or having a good credit score?
- Company reputation: Have you reviewed the insurer’s customer service, claims process, and reviews?
By following these steps, you can compare car insurance in North Carolina effectively and ensure you get the best deal while still maintaining adequate protection.
FAQs about Best Car Insurance in North Carolina
1. What are the minimum car insurance requirements in North Carolina?
In North Carolina, drivers are required to have a minimum of $30,000 in bodily injury coverage per person, $60,000 per accident, and $25,000 for property damage. Uninsured/underinsured motorist coverage is also mandatory.
2. How much does car insurance cost in North Carolina?
The average cost of car insurance in North Carolina is around $800 to $1,200 per year. However, rates can vary based on factors like your driving history, location, and coverage options.
3. What factors affect car insurance rates in North Carolina?
Key factors include your driving record, age, gender, vehicle type, credit score, and where you live. Discounts for good driving, bundling policies, or being a student can also lower your premium.
4. Can I get cheap car insurance in North Carolina with a clean driving record?
Yes, drivers with clean records are often eligible for lower rates. Many insurers offer good driver discounts, making it easier to find affordable options.
5. What are the best car insurance companies in North Carolina?
Some of the top-rated car insurance providers in North Carolina include State Farm, GEICO, Nationwide, and USAA. Comparing quotes from multiple companies can help you find the best rates and coverage.
6. Does North Carolina offer any special programs for high-risk drivers?
Yes, the North Carolina Reinsurance Facility helps high-risk drivers obtain insurance coverage, though premiums may be higher.
Conclusion
In summary, car insurance in North Carolina is not only a legal requirement but also a crucial safeguard for your financial well-being. We’ve explored the state’s minimum coverage requirements, the types of coverage available, and the factors influencing your car insurance rates. It’s clear that every driver should prioritize getting the right level of protection tailored to their needs.
To ensure you’re not overpaying or underinsured, it’s essential to get a free car insurance quote and compare policies. Staying properly insured in North Carolina protects you from costly fines, potential lawsuits, and unexpected accidents, offering peace of mind on the road. Don’t wait—get a quote today to secure your coverage and safeguard your future!
References
To ensure the accuracy and credibility of the information presented in our article on the Best Car Insurance in North Carolina, we’ve cited reputable sources for further reading. These references provide in-depth analysis, reviews, and data to help you make well-informed decisions about car insurance options in the state. Explore the links below for more detailed insights:
- North Carolina Department of Insurance: For the latest regulations and updates regarding car insurance policies in North Carolina, visit the official website.
- Insurance Information Institute (III): A comprehensive resource offering detailed reports and statistics on car insurance trends and coverage. Learn more here.
- Forbes Advisor: Get expert opinions and reviews on the top car insurance providers in North Carolina. Access the guide here.
- Consumer Reports: Find unbiased ratings and customer satisfaction data for car insurance companies in North Carolina. Check it out here.
These references ensure the reliability of the content and offer you additional resources for more in-depth knowledge.
