Best Cheap Car Insurance In North Carolina (2023)
The cheapest car insurance in North Carolina comes from Erie Insurance at $26 per month on average.
Find out if you’re paying too much for auto insurance here.
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With rising car insurance costs, it’s a good idea for North Carolina drivers to compare policy options to find the most affordable coverage. Our reviews team has researched the best car insurance companies nationwide, taking a close look at each provider’s reputation, customer satisfaction, coverage options, and average premiums.
In this review, we’ll explain the best ways to save on coverage and where you can find the cheapest car insurance in North Carolina based on your driving profile.
Key Points
- Erie Insurance is the cheapest car insurance company in North Carolina overall, with an average rate of $26 per month for minimum coverage and $88 per month for full coverage.
- North Carolina Farm Bureau and State Farm also offer affordable car insurance rates for many driver profiles.
- Drivers will see higher-than-average car insurance rates if they’re under 25 or have traffic violations on their record.
- You can save on car insurance by opting for minimum coverage, looking for discounts, increasing your deductible, and bundling your auto insurance with other policies.
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Car insurance companies all look at driver profiles a little differently, so the cheapest provider for one driver may not be the cheapest for you. As an example, here’s a snapshot of the cheapest auto insurance providers and their rates for different driver profiles in North Carolina:
| Cheapest Car Insurance
Company | Average
Monthly Cost | Average
Annual Cost | |
|---|---|---|---|
| Minimum coverage | Erie Insurance | $26 | $311 |
| Full coverage | Erie Insurance | $88 | $1,056 |
| 16-year-olds | State Farm | $59 | $703 |
| 45-year-olds | Erie Insurance | $25 | $296 |
| High-risk drivers | National General | $61 | $738 |
| After a speeding ticket | Erie Insurance | $41 | $495 |
| After an accident | Erie Insurance | $41 | $495 |
| After a DUI | National General | $59 | $706 |
| Poor credit drivers | Erie Insurance | $37 | $446 |
*Unless stated otherwise, average costs are minimum-coverage rates for single male drivers between the ages of 25 and 35 with good credit and a clean driving history.
What Is The Cheapest Car Insurance Company In North Carolina?
Overall, we found that Erie Insurance offers the cheapest car insurance in North Carolina across most driving profiles. The following sections will cover the average monthly costs of both minimum- and full-coverage car insurance from the cheapest companies in the Tar Heel State.
These rates are for North Carolina drivers of different ages, locations, and driving backgrounds. The cheapest companies are organized by minimum coverage costs.
Cheapest Minimum Coverage In North Carolina: Erie Insurance
Drivers looking for the most affordable coverage that just meets North Carolina state minimum requirements may find it at Erie Insurance for about $26 per month or $311 per year on average.
| Cheapest Car Insurance
in North Carolina | Average
Monthly Cost | Average
Annual Cost |
|---|---|---|
| Erie Insurance | $26 | $311 |
| North Carolina Farm Bureau | $34 | $403 |
| Nationwide | $35 | $423 |
| State Farm | $35 | $424 |
| National General | $38 | $459 |
| Penn National | $39 | $464 |
| Geico | $40 | $483 |
| Farmers | $42 | $500 |
| Progressive | $42 | $500 |
| Allstate | $74 | $887 |
Cheapest Full Coverage In North Carolina: Erie Insurance
If you’re looking for more thorough coverage at the best price, Erie Insurance still takes the top spot. The provider offers full-coverage insurance for an average of $88 per month.
Full-coverage insurance policies in North Carolina generally include liability insurance, uninsured/underinsured motorist coverage, collision coverage, and comprehensive insurance.
| Cheapest Car Insurance
in North Carolina | Average
Monthly Cost | Average
Annual Cost |
|---|---|---|
| Erie Insurance | $88 | $1,056 |
| North Carolina Farm Bureau | $116 | $1,389 |
| Geico | $118 | $1,412 |
| State Farm | $127 | $1,529 |
| Penn National | $135 | $1,621 |
| Nationwide | $136 | $1,635 |
| National General | $140 | $1,684 |
| Farmers | $147 | $1,758 |
| Progressive | $147 | $1,758 |
| Allstate | $245 | $2,935 |
Cheapest Car Insurance In North Carolina: Age
Below, you’ll find average insurance costs for North Carolina drivers ages 16 to 55 as well as the top five cheapest car insurance companies for each age group. It’s common for drivers between the ages of 30 and 55 to get the best auto insurance rates because they have more experience on the road. They’re also statistically less likely to get into car accidents than younger drivers.
Average Car Insurance Rates By Age
| Age | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| 16 | $125 | $364 |
| 25 | $42 | $144 |
| 35 | $39 | $136 |
| 45 | $38 | $132 |
| 55 | $37 | $126 |
Cheapest North Carolina Car Insurance: Young Drivers
As mentioned, drivers in their teens and early 20s typically pay the most expensive car insurance rates. That’s largely because these drivers have less experience behind the wheel and are more prone to disobeying traffic regulations and getting into car accidents.
In fact, the fatal crash rate per mile driven for teen drivers was nearly three times the rate for drivers 20 years old and older in 2021, according to the Insurance Institute for Highway Safety.
Cheapest North Carolina Car Insurance For 16-Year-Olds: State Farm
If you’re a teen driver or the parent of one, State Farm may be your best bet for finding the most affordable car insurance in North Carolina.
The company’s cheapest average rates for 16-year-old drivers are $59 per month or $703 per year, which is relatively affordable compared to other states. If you’re looking for full coverage, the average is $190 per month or $2,280 per year from State Farm.
| Cheapest Car Insurance
in North Carolina | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| State Farm | $59 | $190 |
| Erie Insurance | $83 | $238 |
| Nationwide | $98 | $313 |
| National General | $118 | $379 |
| North Carolina Farm Bureau | $120 | $346 |
Cheapest North Carolina Car Insurance For 25-Year-Olds: Erie Insurance
Compared to what teen drivers pay, car insurance rates drop significantly for young drivers in their 20s. However, rates for this age group can still be hefty depending on the company you choose.
Erie Insurance provides the cheapest car insurance costs on average at $26 per month or $314 per year for minimum coverage and $89 per month or $1,069 per year for full coverage.
| Cheapest Car Insurance
in North Carolina | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| Erie Insurance | $26 | $89 |
| North Carolina Farm Bureau | $35 | $120 |
| Geico | $38 | $109 |
| Nationwide | $39 | $146 |
| Penn National | $39 | $135 |
Cheapest North Carolina Car Insurance: Adult Drivers
Drivers in their 40s tend to pay the lowest rates for auto insurance. You can compare average rates of drivers in their 30s, 40s, and 50s from the top five cheapest companies for each age group below.
Cheapest North Carolina Car Insurance For 35-Year-Olds: Erie Insurance
Like 25-year-olds, drivers in their mid-30s may insure their cars at the cheapest cost by getting a minimum- or full-coverage car insurance policy from Erie Insurance. The company offers average minimum-coverage costs of $26 per month or $307 per year. For full coverage, the provider’s rates average $87 monthly or $1,043 annually.
| Cheapest Car Insurance
in North Carolina | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| Erie Insurance | $26 | $87 |
| State Farm | $30 | $107 |
| North Carolina Farm Bureau | $32 | $112 |
| Nationwide | $32 | $127 |
| National General | $37 | $139 |
Cheapest North Carolina Car Insurance For 45-Year-Olds: Erie Insurance
Forty-five-year-old drivers may find the most affordable minimum coverage from Erie Insurance, with average rates of $25 per month or $296 per year. The cheapest full coverage also comes from Erie at $84 per month or $1,002 per year.
| Cheapest Car Insurance
in North Carolina | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| Erie Insurance | $25 | $84 |
| State Farm | $28 | $97 |
| North Carolina Farm Bureau | $30 | $101 |
| Nationwide | $31 | $119 |
| National General | $38 | $140 |
Cheapest North Carolina Car Insurance For 55-Year-Olds: Erie Insurance
Drivers in their 50s can typically find the best car insurance rates in North Carolina from Erie Insurance. The insurer’s average premiums are $24 monthly or $284 annually for minimum coverage and $80 monthly or $957 annually for full coverage.
| Cheapest Car Insurance
in North Carolina | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| Erie Insurance | $24 | $80 |
| State Farm | $26 | $91 |
| Nationwide | $30 | $112 |
| North Carolina Farm Bureau | $30 | $101 |
| National General | $39 | $142 |
Cheapest Car Insurance In North Carolina: High-Risk Drivers
In addition to coverage type and age, how safely you drive plays a huge part in what you’ll pay for car insurance. Auto insurers typically determine if you’re a high-risk driver by looking at how many infractions are on your driving record, including speeding tickets, at-fault accidents, and DUI convictions.
Average Car Insurance Rates For High-Risk Drivers
High-risk drivers pay higher-than-average car insurance rates due to the multiple violations on their records. On average, North Carolina motorists who are deemed high-risk may find the most affordable rates from National General for minimum coverage or Erie Insurance for full coverage.
| Car Insurance Company | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| National General | $61 | $293 |
| Erie Insurance | $63 | $219 |
| North Carolina Farm Bureau | $75 | $261 |
| Nationwide | $83 | $323 |
| State Farm | $83 | $302 |
| Penn National | $88 | $306 |
| Farmers | $95 | $333 |
| Progressive | $95 | $333 |
| Geico | $112 | $355 |
| Allstate | $195 | $643 |
Cheapest North Carolina Car Insurance For Drivers With A Speeding Ticket: Erie Insurance
Drivers with a speeding citation on their record can generally find the most affordable coverage from Erie Insurance, with average rates of $41 per month or $495 per year for minimum coverage and $142 per month or $1,704 per year for full coverage.
| Cheapest Car Insurance
in North Carolina | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| Erie Insurance | $41 | $142 |
| North Carolina Farm Bureau | $49 | $169 |
| Nationwide | $51 | $198 |
| State Farm | $53 | $192 |
| National General | $57 | $207 |
Cheapest North Carolina Car Insurance For Drivers With An At-Fault Accident: Erie Insurance
Causing a car accident in North Carolina can also increase your car insurance rates. Erie Insurance tends to offer the most affordable rates on average at about $41 per month or $495 per year for minimum coverage and $142 per month or $1,704 per year for full coverage.
| Cheapest Car Insurance
in North Carolina | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| Erie Insurance | $41 | $142 |
| North Carolina Farm Bureau | $49 | $169 |
| State Farm | $53 | $192 |
| Penn National | $57 | $198 |
| Farmers | $61 | $215 |
Cheapest North Carolina Car Insurance For Drivers With A DUI: National General
If you’re a motorist with a DUI conviction, you may find the cheapest minimum car insurance in North Carolina from National General for $59 per month or $706 per year on average. However, Erie tends to be the cheapest option for full coverage, with average rates of $374 monthly or $4,487 annually.
| Cheapest Car Insurance
in North Carolina | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| National General | $59 | $453 |
| Erie Insurance | $108 | $374 |
| North Carolina Farm Bureau | $128 | $445 |
| Nationwide | $135 | $520 |
| State Farm | $143 | $523 |
Cheapest North Carolina Car Insurance For Drivers With Poor Credit: Erie Insurance
Drivers with poor credit pay higher car insurance costs. Those who don’t have the best credit history may want to check out Erie Insurance, which has an average minimum-coverage rate of $37 per month or $446 per year and an average full-coverage rate of $129 per month or $1,554 per year.
| Cheapest Car Insurance
in North Carolina | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| Erie Insurance | $37 | $129 |
| Farmers | $42 | $147 |
| Penn National | $42 | $147 |
| Progressive | $42 | $147 |
| Nationwide | $43 | $166 |
Average Cost Of Car Insurance In 20 North Carolina Cities
Where you live in North Carolina is another factor in how much you pay for car insurance. Auto insurance companies consider drivers riskier to cover in areas with:
- Bigger populations
- More cars on the road
- Higher rates of car accidents
- Higher rates of traffic violations
- More incidents of car theft and auto vandalism
- Severe weather patterns
Some risk factors are more likely to affect car owners in larger cities, which is why drivers in Charlotte pay the highest average cost of car insurance for minimum coverage in the state. Drivers in rural areas with less crime and a smaller population are more likely to see cheaper rates.
| City | Minimum-Coverage
Average Monthly Cost | Full-Coverage
Average Monthly Cost |
|---|---|---|
| Charlotte | $56 | $161 |
| Raleigh | $47 | $139 |
| Greensboro | $45 | $138 |
| Winston-Salem | $39 | $122 |
| Durham | $45 | $140 |
| Fayetteville | $54 | $162 |
| Gastonia | $55 | $159 |
| Asheville | $35 | $121 |
| Wilmington | $47 | $130 |
| Wake Forest | $45 | $135 |
| Shelby | $43 | $141 |
| Thomasville | $41 | $130 |
| Jacksonville | $44 | $140 |
| Chapel Hill | $37 | $122 |
| Concord | $50 | $144 |
| Wilson | $48 | $154 |
| Kernersville | $40 | $122 |
| Hickory | $41 | $134 |
| Goldsboro | $43 | $139 |
| Huntersville | $44 | $136 |
Top 5 Car Insurance Companies In North Carolina
In addition to cost, we’ve analyzed over 40 insurance companies based on their coverage, service, and reliability to find the top five insurers for North Carolina residents. Based on our research, we found Erie Insurance to be the best provider for most drivers in the Tar Heel State. Below are our overall ratings for our recommended choices.
| Overall
Rating | Cost | Coverage | Reliability | Service | |
|---|---|---|---|---|---|
| #1 Erie Insurance | 4.5 | 4.3 | 5.0 | 4.5 | 4.5 |
| #2 State Farm | 4.7 | 4.3 | 4.6 | 5.0 | 4.5 |
| #3 USAA | 4.5 | 4.7 | 4.8 | 4.5 | 4.9 |
| #4 Geico | 4.5 | 4.2 | 4.2 | 4.9 | 4.3 |
| #5 North Carolina Farm Bureau | 4.1 | 4.0 | 4.6 | 4.4 | 4.0 |
*The overall and category ratings above are based on nationwide factors. The provider rankings are based on our recommendations specifically for North Carolina car insurance.
#1 Erie Insurance: Best For High-Risk Drivers
Erie Insurance is our No. 1 pick for drivers looking for car insurance in North Carolina. The insurer provides the cheapest car insurance on average across most driving profiles in the state and has a great reputation with the Better Business Bureau (BBB). Erie also holds an A+ rating from AM Best, meaning it’s financially strong and able to pay out claims.
One thing that makes Erie stand out is its Rate Lock® feature, which keeps your car insurance premiums the same even after you file a claim–as long as you don’t make policy adjustments. Erie also offers savings opportunities like first accident forgiveness, a diminishing deductible option, and a vehicle storage discount.
Erie Insurance Customer Satisfaction
In our research, we found that Erie Insurance has high levels of customer satisfaction. In our team’s 2022 survey of nearly 7,000 car insurance policyholders, Erie received the second-highest score for customer satisfaction (4.4 out of 5.0 stars). The company also holds the second-highest customer satisfaction score for midsize insurers in the J.D. Power 2023 U.S. Insurance Shopping Study℠.
Keep reading: Erie Insurance review
#2 State Farm: Best Overall Provider
State Farm is second on our list of the best car insurance companies for North Carolina drivers, and it’s our team’s top recommended provider nationwide. That’s because State Farm offers a comprehensive list of coverage options and is highly accessible through its thousands of local agents across the U.S.
State Farm’s savings opportunities are almost unparalleled. The company has two different usage-based insurance programs (Drive Safe & Save™ and Steer Clear®) that monitor car owners’ driving behaviors and award discounts based on safe driving habits. State Farm also has one of the best good student discounts in the country, helping drivers take up to 25 percent off their premiums.
State Farm Customer Satisfaction
Our team found that customers are relatively happy with State Farm. In the J.D. Power Insurance Shopping Study, the company ranked first in overall customer satisfaction for large insurers, scoring 877 out of 1,000 points.
In our consumer survey, 19 percent of respondents had an auto insurance policy with State Farm, and they gave the provider an overall satisfaction rating of 4.2 out of 5.0 stars. State Farm was also the No. 1 most-used car insurance company in the U.S. in 2022, according to the National Association of Insurance Commissioners (NAIC). The company had 16.78 percent market share that year.
#3 USAA: Best For Military Members
USAA typically offers some of the cheapest car insurance rates in North Carolina and throughout the U.S. However, only military members, veterans, and their immediate families qualify for coverage.
Those who qualify can take advantage of USAA’s many discounts, including savings for good students, drivers who insure new cars, drivers who garage their vehicles on military installations, and more. USAA’s SafePilot™ program is another great savings option that awards up to 30 percent off premiums based on how safely a policyholder drives.
USAA Customer Satisfaction
In our consumer survey, USAA received the third-highest score for customer satisfaction behind Erie and American Family. However, USAA had a bigger pool of policyholders than the prior two providers, lending more significance to its 4.2 rating out of 5.0. The company also received excellent overall ratings for its claims and agent services.
USAA scored the second-highest in customer satisfaction for large insurers in the J.D. Power Insurance Shopping Study, though it didn’t rank with the other providers because of its stricter eligibility requirements.
Keep reading: USAA insurance review
#4 Geico: Best Basic Coverage
Geico makes our top five for its relatively affordable rates and many discount opportunities. This car insurance provider offers 16 different discounts that policyholders may qualify for, like a good student discount, a federal employee discount, and an added safety features discount.
Geico’s popularity is evidenced by its 13.76 percent market share in auto insurance, according to the NAIC. In 2022, Geico was the third-largest car insurance company in the nation and paid $38.1 billion in premiums.
On top of that, the company holds an A++ rating from AM Best, which shows that it has supreme financial strength and is able to pay out claims. In our consumer survey, Geico scored high in claims service, receiving 4.0 out of 5.0 stars.
Geico Customer Satisfaction
In the J.D. Power Insurance Shopping Study, Geico’s customer satisfaction score fell below the industry average. However, Geico did very well in our survey, with 16 percent of respondents having a policy through the company. Geico scored 4.1 stars out of 5.0 in customer satisfaction and 4.0 out of 5.0 for its customer service from agents.
#5 North Carolina Farm Bureau: Best Local Coverage
If you’re looking for a straightforward policy without many add-ons, North Carolina Farm Bureau offers quality local coverage for drivers in the state. The insurer has affordable rates on average and offers many member benefits with its auto insurance coverage.
North Carolina Farm Bureau policyholders can get discounts on products and services, from theme park tickets to hotel stays. However, to get auto insurance through North Carolina Farm Bureau, you’ll need to become a member, which requires a $25 annual fee.
North Carolina Farm Bureau Customer Satisfaction
In our research, we found that North Carolina Farm Bureau has a positive customer satisfaction reputation. In the J.D. Power 2023 U.S. Auto Insurance Study℠, NCFB scored above the industry average for the Southeast region of the U.S. with 842 out of 1,000 points.
How To Get The Cheapest Car Insurance In North Carolina
There are several ways you can lower your car insurance costs in the state of North Carolina. These include:
- Opting for minimum coverage: Getting only the minimum coverage required by your state will get you the cheapest car insurance possible.
- Seeking out discounts: Most insurance companies have multiple discounts that can help cut down on premium costs, from military and good student discounts to discounts for drivers that remain accident free for five years.
- Raising your deductible: A higher deductible will lower your premium costs, but you’ll have to pay more out of pocket if you file a claim.
- Bundling your auto insurance: You can often bundle your auto insurance with a homeowners insurance policy or other type of coverage to earn a discount.
- Comparing quotes: Getting quotes from multiple companies can help you get a sense of which provider will offer the best deal.
Usage-based insurance programs are another great savings option offered by many insurers. These programs use telematics to monitor your driving habits–from your speed and braking to the time of day you drive. If you’re a safe driver, you could get a serious discount, but some programs will raise your rates if you exhibit risky driving behaviors.
Some companies also offer diminishing deductibles and accident forgiveness. A diminishing deductible option decreases your deductible amount each time you renew your policy. Accident forgiveness ensures that your rates won’t increase after your first accident with the company.
What Does North Carolina Require For Car Insurance?
Drivers in North Carolina must meet minimum insurance requirements as outlined by state law, which include basic liability insurance and uninsured/underinsured motorist (UM/UIM) coverage:
- $30,000 bodily injury liability coverage per person
- $60,000 bodily injury liability coverage per accident
- $25,000 property damage liability coverage per accident
- $30,000 UM/UIM bodily injury coverage per person
- $60,000 UM/UIM bodily injury coverage per accident
- $25,000 UM/UIM property damage coverage per person
Liability coverage only takes care of other parties’ injuries and property damages in an accident that you cause. UM/UIM covers your injuries and property damages, but only in the case that the at-fault driver has little to no auto insurance.
Getting comprehensive insurance will ensure that your car is covered if stolen, vandalized, or damaged by floods, fire, animals, or other natural disasters. Collision insurance covers your car repairs after an accident.
Our Take: Best Cheap Car Insurance In North Carolina
When it comes to both minimum and full coverage, Erie Insurance is the best and cheapest car insurance company for most drivers in the Tar Heel State. While the above costs can give you an idea of what you’d pay for car insurance in North Carolina, getting a personalized quote will help give you a more accurate picture of what you’ll pay.
Most companies have fast and free online quote tools you can use, or you can call an insurance agent or representative at the company directly. After collecting car insurance quotes from three or more providers, compare your options to find your best match.
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Best Cheap Car Insurance In North Carolina: FAQ
Here are some frequently asked questions about car insurance in North Carolina:
How much is car insurance per month in North Carolina?
The average cost of minimum-coverage car insurance in North Carolina is $41 per month or $485 per year. For full coverage, the average is $140 per month or $1,678 per year.
Is North Carolina car insurance cheaper?
North Carolina auto insurance is typically cheaper than the national average. Nationwide, the average cost of minimum-coverage insurance is $681 per year, while the average in North Carolina is $485 per year. For full coverage, North Carolinans pay about $1,678 per year on average, which is significantly less than the national average of $2,190 per year.
What does North Carolina car insurance cover?
For both liability coverage and uninsured/underinsured motorist coverage, North Carolina requires its drivers to have $30,000 bodily injury protection per person, $60,000 bodily injury protection per accident, and $25,000 property damage coverage per accident.
How We Rate Insurers
Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:
- Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
- Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
- Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
- Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.
*Data accurate at time of publication.
