Average Cost of Car Insurance in North Carolina for 2024 | Bankrate (2024)

Insurance Disclosure

Updated Nov 29, 2023

The average cost of full coverage car insurance in North Carolina is $1,446 annually, while the average cost of minimum coverage is $432 a year.

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How much is car insurance in North Carolina?

The average cost of car insurance in North Carolina is $1,446 annually for full coverage and $432 annually for state-required minimum coverage. North Carolina car insurance rates are well below the national average costs of car insurance, which are $2,014 per year for full coverage and $622 per year for minimum coverage. To pinpoint how much drivers can expect to pay, Bankrate’s insurance editorial team, which includes licensed agents, turned to Quadrant Information Services and reviewed average rates for the largest companies in the state by market share.

Key takeaways

• The average cost of full coverage car insurance in North Carolina is $1,446 per year or $121 per month. Minimum coverage is $432 per year or $36 per month.
• On average, North Carolina drivers pay 39 percent less for full coverage car insurance compared to the national average.
• Of all age groups,16-year-old drivers pay the most for car insurance in NC.
• Drivers convicted of a DUI in North Carolina face an average full coverage rate increase of 311 percent.

North Carolina car insurance rates by city

Car insurance rates vary by state; they can also vary by city. For example, Fayetteville and Charlotte’s average annual full coverage premiums are slightly higher than the state average. Larger cities tend to have higher insurance costs for a few reasons. Higher medical care costs may increase bodily injury liability coverage premiums, and higher costs for vehicle repairs and labor may increase premiums for property damage liability, comprehensive coverage and collision coverage. Additionally, larger cities tend to have more traffic, which could lead to a higher likelihood of accidents.

Average car insurance costs by age and gender in North Carolina

Car insurance rates vary by age in most states, including North Carolina, with younger drivers usually paying more for coverage due to a higher likelihood of accidents and subsequent claims. Recognizing and responding to sudden road hazards is a learned skill that takes time to develop, and the lack of driving experience is why teen drivers typically face the highest insurance rates.

In most cases, young drivers can save money by staying on their parents’ policies as additional drivers for as long as possible. Premiums generally decrease with age but may begin to increase again when drivers reach their senior years. In some states, male drivers typically see higher average rates than female drivers, but North Carolina car insurance laws do not allow the use of gender as an insurance rating factor.

Bankrate’s take:Insurance rates are based on risk and statistical data. Historically, men tend to have riskier driving behavior than women. In fact, Insurance Institute for Highway Safety data reveal that men are less likely to wear a seat belt and more likely to drive while intoxicated and speed. Males tend to average more miles on the road per year than their female counterparts, as well. However, North Carolina, California, Hawaii, Massachusetts, Michigan and Pennsylvania prohibit the use of gender as a rating factor when pricing policies.

Cost considerations for young drivers in North Carolina

If a young driver is still living in their parents’ household, it’s usually cheaper to keep that driver listed on their parents’ policy. By staying on their parents’ policy, new drivers get the fiscal benefit of having more experienced drivers on the policy to keep the cost lower. You can see from the rates here that the newest drivers — those who are 16 and 17 years old — pay the highest average rates. Premiums may start to lower after just one year of driving experience, provided the young driver maintains a clean driving record.

Estimate your car insurance cost in North Carolina

Finding car insurance in NC that fits your needs and budget can be overwhelming. Getting an idea of what you might end up paying is a good place to start. Bankrate created the tool below to help drivers estimate their costs.

How to save on car insurance in North Carolina

Generally, North Carolina car insurance is cheaper than comparable coverage in many other states. However, there are still ways to potentially shave more money off your premium.

• Shop around: Car insurance companies price policies differently, so one company may extend you a quote that’s significantly cheaper than another. For this reason, comparing quotes from several companies for the same coverage types and policy limits is helpful when searching for the most affordable rates.
• Bundle your policies: Bundling your auto and home insurance just means buying both policies from the same company. This is generally one of the most significant discounts you can get.
• Maintain a clean driving record: Drivers with incidents like tickets, at-fault accidents and DUI convictions pay quite a bit more for car insurance coverage, on average. Practicing safe driving habits may help you avoid these costly surcharges.
• Look for discounts: In addition to bundling, most car insurance companies offer at least a handful of discount opportunities. Some of the most common include multi-policy, paperless billing and claims-free discounts.

Keep in mind that North Carolina prohibits many common discounts, though. One example is the good student discount. To ensure you’re taking advantage of the discounts that are available, talk to your agent or a representative from your company.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit-based insurance scores: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Model: To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Ford F-150, Honda Odyssey, Toyota Prius and Toyota Camry (base).

Age: Rates were calculated by evaluating our base profile with the ages 16-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.

Teens: Rates were determined by adding a 16- or 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy unless otherwise noted.