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Cheapest Car Insurance in North Carolina
Erie offers the cheapest car insurance in North Carolina, with average rates of $25 a month for liability insurance and $86 a month for full coverage.
Discover if you are overpaying for car insurance below.
Daniel Robinson is a writer based in Greenville, N.C. with expertise in auto insurance, loans, warranty options and more. Away from the keyboard, Daniel spends time with his wife and son, plays guitar and obsesses over the Beatles and Baltimore Orioles.
RaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on things including travel, entertainment and household services.
Senior Editor
Key Takeaways:
Erie, State Farm, North Carolina Farm Bureau, Nationwide and Penn National are the cheapest car insurance companies for most drivers in North Carolina, according to our research.
Full-coverage car insurance in North Carolina costs $1,627 per year or $136 per month on average, according to our most recent analysis of data from Quadrant Information Services.
The state minimum coverage in North Carolina is $469 per year or $39 per month on average, ultimately making the state 25% cheaper than the national average of $627 per year.
We at the MarketWatch Guides team took an in-depth look at the best car insurance companies in the country, including national and regional North Carolina providers. We compared their coverage options, reputation and customer service, as well as whether they offer cheap car insurance in the Tar Heel State. Here’s what we discovered.
Here’s a breakdown of how we reviewed and rated the top auto insurance providers
130
Providers ReviewedOur team looked at over 100 of the top auto insurance providers in the U.S., from national providers like USAA, Travelers and State Farm to regional providers like Erie Insurance.
8,500
Data Points AnalyzedTo properly score each auto insurance provider, we looked at cost data, claims processes, customer review scores, industry standing, available discounts, coverages and add-ons.
800
Research HoursOur team put in the time so you don’t have to, evaluating cost data, reading customer reviews and researching companies to determine the most reliable options for coverage.
12,500
Customers SurveyedWe asked thousands of customers to describe their experience with their auto insurance provider to understand how real customers feel about their insurers.
Who Has The Cheapest Car Insurance in North Carolina?
According to our rate data, Erie offers both the cheapest full-coverage and minimum liability car insurance in North Carolina. However, State Farm, North Carolina Farm Bureau, Nationwide and Penn National are all worth considering.
Best North Carolina Car Insurance Rates
Car insurance rates vary due to several factors, like your age, driving history and credit score. The cheapest rates for you will vary depending on your situation. We’ve listed the lowest rates for each category of coverage and driver profile we researched.
Unless specified otherwise, rates are based on a 35-year-old driver with a clean driving history and good credit, since this profile excludes several rate-raising factors.
You can click on any of the providers above to learn more, or keep reading to see the state’s cheapest car insurance companies by size.
Cheapest Large Insurance Companies in North Carolina
Among large auto insurance companies in North Carolina, State Farm, Nationwide, Geico, Farmers and Progressive are the cheapest. Large insurers are ones that have written $4.5 billion or more in direct premiums for personal auto, according to J.D. Power. You’ll find the lowest rates on average from these companies in the Tar Heel state.
*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in North Carolina.
We reached out to Progressive and Farmers about their lower cost ratings and did not receive a response.
Cheapest Midsize Insurance Companies in North Carolina
The cheapest midsize car insurance companies in North Carolina are Erie Insurance, North Carolina Farm Bureau and Penn National. J.D. Power defines midsize insurers as those that have written between $1 and $4.499 billion in direct premiums for personal auto. You can compare their average premiums and our cost ratings for each company below.
Coverage level has a major impact on how much you will pay for car insurance. Many quotes from providers include estimates for minimum liability and full-coverage car insurance.
Car insurance typically costs less in the Tar Heel state than the national average, which is $2,008 per year for full coverage and $627 per year for minimum liability.
Below are the cheapest auto insurance options in North Carolina for both coverage types.
Cheap Minimum Liability Car Insurance in North Carolina
The cheapest liability car insurance for drivers in North Carolina is from Erie for $26 per month or $307 per year.
Compare average rates for North Carolina drivers between 16 and 55 years old.
Age
Average Monthly Rate
Average Annual Rate
16
$364
$4,373
25
$144
$1,728
35
$136
$1,627
45
$132
$1,590
55
$126
$1,510
Cheapest Car Insurance for Young Drivers in North Carolina
Young drivers typically pay much more for car insurance than adults, and this stands true for the Tar Heel state. The tables below show the cheapest full-coverage car insurance for young drivers aged 16 through 25 in North Carolina as well as estimated monthly and annual costs.
Cheapest Car Insurance in North Carolina for Seniors
Nationwide provides the cheapest car insurance in North Carolina for seniors with average annual rates of $948 for a full-coverage policy. The sections below break down costs for car insurance in the state for 65 to 75-year-old drivers.
Cheapest Car Insurance in North Carolina for 65-Year-Olds
Nationwide offers the cheapest rates for North Carolina drivers in their mid-60s at an average of $78 per month.
Company
Average Monthly Rate
Average Annual Rate
Nationwide
$78
$886
Erie
$76
$918
Geico
$89
$1,062
North Carolina Farm Bureau
$89
$1,071
State Farm
$90
$1,077
Note:Costs were taken from 2022 information.
Cheapest Car Insurance in North Carolina for 75-Year-Olds
75-year-old drivers in North Carolina can find affordable car insurance premiums throughNationwide, which costs an average of $84 per month.
Company
Average Monthly Rate
Average Annual Rate
Nationwide
$84
$1,010
Erie
$92
$1,108
North Carolina Farm Bureau
$96
$1,147
Geico
$102
$1,224
State Farm
$108
$1,297
Note:Costs were taken from 2022 information.
Cheapest Car Insurance in North Carolina for High-Risk Drivers
If you have poor credit or a speeding ticket, car accident or DUI on your record, insurers may view you as high risk and charge you more for coverage. On average, Erie provides the cheapest overall car insurance rates for those with bad driving records or credit scores in the state of North Carolina. The sections below provide monthly and annual average full-coverage rates for drivers who fall into one of these categories.
There are a few ways drivers can save on car insurance in North Carolina. First, know what factors impact your rates. Then, take advantage of any discounts you’re eligible for.
The table below compares some of the car insurance deals and discounts available from our top providers in the Tar Heel state, which we’ll discuss in further detail below.
North Carolina Car Insurance Discounts
Erie
State Farm
North Carolina Farm Bureau
Nationwide
Penn National
Multi-policy
✔
✔
✔
✔
✔
Multi-vehicle
✔
✔
✔
✔
Safe driver
✔
✔
✔
✔
Student
✔
✔
✔
Defensive driving
✔
✔
Driver training
✔
✔
✔
New vehicle
✔
Car safety equipment
✔
✔
✔
✔
*These are the standard car insurance discounts offered by each company. Discount availability can vary by state, so you’ll need to speak with an insurance agent to find out which car insurance discounts you may qualify for.
Here are more details about the standard auto insurance discounts:
Multi-policy: Bundle two or more insurance policies with the same company, such as home and auto insurance.
Multi-vehicle: Insure multiple cars with the same provider.
Military: Whether you’re an active military member or veteran, you can save money.
Senior: Policyholders who are 55 and older are eligible for these discounts.
Homeowners: Those who own a home may qualify for this discount.
Good student: College and high school students under 25 who maintain a B average in their courses are eligible for savings.
Good driver: Drivers with a clean driving record (no at-fault accidents, DUIs or speeding tickets in the last three years) can save money.
Defensive driving: Those who take a defensive driving course tend to qualify for this discount.
Driver training: Taking a driver education training course may qualify you for discounts.
New car: Drivers who purchase a new car (typically three model years or newer) can save on premiums.
Safe car: If your vehicle has safety features like anti-theft technology then you may be eligible for discounts.
Paperless: Opt to receive your documents through email for savings.
Pay-in-full: If you pay off your policy in full upfront, you may save money.
The cheapest car insurance companies in North Carolina are Erie, State Farm, North Carolina Farm Bureau, Nationwide and Penn National, according to our research. Below, we go into further detail on each company’s offerings, reputation, customer ratings and history.
#1 Erie Insurance: Best for Basic Insurance Coverage
9.4/10
Erie Overview
In our nationwide review of the best car insurance companies, we gave Erie a perfect 10 for coverage and a 9.9 for its cost and available discounts. Erie has been in business for about a century and, and even though it’s only available in 12 states, it’s one of the top 15 largest auto insurers in the U.S. according to the National Association of Insurance Commissioners (NAIC).
Erie Insurance Cost and Coverage in North Carolina
Full-coverage auto insurance from Erie costs an average of $87 per month or $1,043 per year. This makes Erie around 36% cheaper than the state average of $1,627.
Erie doesn’t just offer standard car insurance coverage. The provider also offers add-ons including:
Auto glass repair
Locksmith services
Personal item coverage
Top Erie Car Insurance Discounts in North Carolina
Erie Rate Lock®: This policy endorsement freezes the cost of your auto premium, even if you file a claim
First accident forgiveness: If you’ve been with Erie for more than three years, you won’t be surcharged when you get in an accident for the first time.
Vehicle storage: If you plan on storing your vehicle for more than 90 days, then Erie will offer reduced usage discounts.
Cheapest car insurance rate in North Carolina: $30 per month
Cheapest coverage in North Carolina for: 16-year-olds
Number of discounts: 16
As the largest auto insurer in the nation according to the NAIC, State Farm is known for its high customer satisfaction ratings and affordability. It’s also a great option for North Carolina drivers.
State Farm Insurance Cost and Coverage in North Carolina
State Farm offers full-coverage auto insurance in North Carolina at an average of $107 per month or $1,287 per year. This is about 21% cheaper than the state average.
Rental car reimbursement and travel expense coverage
Top State Farm Insurance Discounts in North Carolina
State Farm offers a number of discounts for students and young drivers. Here’s a look at the North Carolina car insurance discounts offered by the company:
Accident-free discount: If you’ve been at State Farm for more than three years without an accident, then you can save money.
Air bag discount: Vehicles with air bags equipped may qualify you for discounts.
Good driving discount: If all of the drivers in your household haven’t been considered at-fault for an accident and haven’t received a moving violation in the past three years, then you can save money on your premiums.
#3 North Carolina Farm Bureau: Best Local Insurance Provider
9/10
North Carolina Farm Bureau Overview
Cheapest car insurance rate in North Carolina: $32 per month
Cheapest coverage in North Carolina for: 19-year-olds
Number of discounts: 5
North Carolina Farm Bureau was originally founded as a non-profit general farm organization to provide a voice for the farming community. Now they are one of the cheapest car insurance providers in the state of North Carolina. North Carolina Farm Bureau offers member benefits from entertainment discounts to competitive loan services.
North Carolina Farm Bureau Insurance Cost and Coverage in North Carolina
North Carolina Farm Bureau’s full-coverage car insurance policy in North Carolina costs an average of $112 per month or $1,340 per year. This is roughly 18% cheaper than the state average.
The local insurance provider offers other insurance products aside from personal auto coverage, including:
Homeowners insurance
Renters insurance
Life insurance
Health insurance
Farm insurance
Business insurance
Top North Carolina Farm Bureau Insurance Discounts in North Carolina
North Carolina Farm Bureau offers a variety of agriculturally related discounts for their members. They also offer common discounts such as:
Good student discounts
Safe driver discounts
Multi-policy discounts
We ultimately recommend reaching out to a local North Carolina Farm Bureau agent for more information on discounts, specifically targeted to you and your area.
#4 Nationwide: Best for Usage-Based Insurance
8.7/10
Nationwide Overview
Cheapest car insurance rate in North Carolina: $32 per month
Cheapest coverage in North Carolina for: 17, 18, 65, and 75-year-olds
Number of discounts: 10
Nationwide is one of the cheapest providers in North Carolina for both young drivers and senior drivers. The insurance titan even offers usage-based insurance, SmartMiles®. SmartMiles is a great option for those who don’t commute or drive frequently, as it allows you to pay per mile on top of a base rate.
Nationwide Insurance Cost and Coverage in North Carolina
Nationwide offers a full-coverage plan in North Carolina for an average cost of $127 per month or $1,518 per year. This makes Nationwide about 7% less expensive than the state average for North Carolina.
In addition to standard policies, Nationwide also offers several optional auto insurance coverages, including:
Cheapest car insurance rate in North Carolina: $39 per month
Cheapest coverage in North Carolina For: N/A
Number of discounts: 7
Founded by a group of Pennsylvania farmers in 1919, Penn National is now a competitively priced multi-state insurance provider. It’s available in 10 other states outside of North Carolina.
Penn National Insurance Cost and Coverage in North Carolina
A full-coverage plan from Penn National in North Carolina costs an average of $135 per month or $1,621 per year. That makes it on par with state average costs.
Besides standard auto insurance coverage, Penn National also offers optional add-ons such as:
Auto loan/lease coverage
Replacement cost auto coverage
Towing and labor
Auto PennPac®, which includes pet coverage, death benefits, seat belt and restraint benefits. If you have a full-coverage policy, it also includes airbag replacement, sound equipment coverage, deductible waivers and more.
Top Penn National Insurance Discounts in North Carolina
Multi-vehicle: If you insure multiple vehicles with Penn National, you can qualify for this discount.
Driver education: If you’ve passed a driver’s education course, you’re eligible to save money on your premiums.
Good student: Students with good grades (B average or higher) on your policy make you eligible for discounts.
Average Cost of Car Insurance in North Carolina
The average cost of full-coverage car insurance in North Carolina is $136 per month or $1,627 per year, according to our data. This makes North Carolina car insurance 19% cheaper than the national average of $2,008.
While insurance rates vary state-to-state, they also vary within states. Regions of North Carolina have differing population density, climate and more. For example,someone living in Asheville may pay different rates than their friend living in Greensboro, even if all other factors are the same.
The table below shows the average car insurance rates for different cities in North Carolina.
Note: Costs were taken from 2022 information. *Average rates above apply to the top three companies in each city.
Cheap Auto Insurance Quotes in North Carolina by ZIP
Typically, more densely populated areas will have higher insurance costs than rural areas due to the increased chance of accidents, theft and vandalism. Below, you can get personalized cheap auto insurance quotes for your location in North Carolina.
Compare Car Insurance Rates
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North Carolina Car Insurance Rates vs. Other States
It’s typically cheaper to get car insurance in North Carolina than in many other states. Below, you can compare average annual rates for North Carolina vs. other states.
North Carolina law requires drivers to carry liability car insurance. This covers other drivers and their cars in accidents you cause. North Carolina drivers need to purchase the following state minimum required coverage and coverage limits:
Bodily injury liability: $30,000 per person and $60,000 per accident
Property damage liability: $25,000 per accident
Uninsured/underinsured motorist bodily injury coverage: $30,000 per person and $60,000 per accident
Uninsured/underinsured motorist property damage coverage: $25,000 per accident
North Carolina Commercial Auto Insurance Requirements
If you own a business vehicle, you’re required to have commercial auto insurance. Coverage limits depend on the weight of the vehicle and its use.
For passenger vehicles:
Transports 1-15 people: $1.5 million combined single limit (CSL)
Transports 15 or more people: $5 million CSL
School buses: $1 million to $1.5 million CSL
Taxis: 100/300/50
For vehicles carrying household goods:
26,000 pounds or less: 100/300/50
Over 26,000 pounds: $750,000 CSL
Cheapest Auto Insurance in North Carolina: The Bottom Line
In this article, we reviewed the auto insurance companies with the cheapest coverage in the Tar Heel state. We also looked at the average cost of car insurance and coverage requirements in North Carolina. North Carolina’s rates are lower than the national average, and Erie is the best cheap car insurance company in the state.
Whether you’re shopping around for first-time car insurance coverage or looking to change your provider, the best thing you can do is compare car insurance quotes. Each provider weighs factors differently, so you’ll likely find varying rates depending on the company.
Compare Car Insurance Rates
Get matched with a top provider and compare instant quotes in just a few clicks
Below are some frequently asked questions about cheap car insurance in North Carolina:
The cheapest car insurance quotes in North Carolina are offered by Erie, State Farm, North Carolina Farm Bureau, Nationwide and Penn National. However, your age, driving history and more may affect your overall cost.
Car insurance in North Carolina generally costs around $136 per month for full coverage. That’s less than the national average, which sits at $167 per month.
No, car insurance is not very expensive in North Carolina. While drivers in the Tar Heel State pay $1,627 per year for full coverage, the national average is much higher at $2,008 annually.
North Carolina drivers must carry at least $30,000 per person and $60,000 per accident in bodily injury liability insurance and in uninsured/underinsured motorist coverage. Additionally, you’ll need $25,000 per accident in property damage liability coverage and uninsured/underinsured motorist coverage.
Insurance follows the car in North Carolina, as in most states. In other words, your policy will cover damages after an accident caused by your car even if you weren’t driving it at the time.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
Industry standing (20% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
Cost and discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
800 hours researched
45 companies reviewed
8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
