Average Car Insurance Rates in North Carolina

Let’s check out what factors insurers use to determine rates for North Carolina auto insurance policies, why prices differ vastly from person to person, and why car insurance costs less in the Tar Heel State than in other states.

North Carolina auto insurance rates vary from person to person based on the individual’s policy, history, and several factors about the policyholder. While drivers are at the whim of their insurer, there are a few telltale signs of the likelihood of a driver being quoted at or above the average cost of premiums in the state.

The average cost of a full coverage policy in the Tar Heel State is about $1,340 annually, or about 20% lower than the national average of about $1,670 annually. Drivers who opt for minimum coverage may see premiums average at about $670 annually, or about half the cost of a full coverage policy. 

Car insurance laws in North Carolina require all drivers to have at least $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident, or 30/60/25 liability coverage. Drivers must also maintain 30/60/25 uninsured motorist (UM) coverage on their minimum coverage policies. Those who lease or finance their vehicles may be required to have comprehensive and collision coverages, too.

No matter the coverage type, premiums vary vastly from person to person. Insurers use unique factors about each driver to determine their premiums, like one’s gender, ZIP code, age, insurance history, or driving record, among several other factors.

The factors insurers use to calculate drivers’ premiums help them assess how likely a driver is to file a claim. Drivers who pose a higher risk of filing a claim, whether because of a history of accidents or because statistics predict their likelihood, generally pay higher premiums. Drivers caught without insurance in the Tar Heel State or with an SR-22 on file are highly likely to have higher-than-average premiums. 

In North Carolina, the car insurance cost is, on average, less than most other states. While the average premium in the state is about 20% lower than the national average, that doesn’t mean every driver is eligible for such a rate. It’s essential to remember that car insurance rates are highly subjective based on each driver.

While insurance rates vary from driver to driver, whether based on their characteristics or statistics that point to the risk of being involved in an accident, the average range of premiums in the Tar Heel State is still less than in many others. Factors about the state as a whole play a big role in determining the average range of premiums.

Generally, a state’s population, population density, and population of uninsured drivers are the main factors that inform average car insurance premiums. Not only does an increased level of just one of these factors indicate a higher likelihood of drivers getting into accidents and filing claims (thus raising the average premiums in the state), but they also contribute to the decision to enact a no-fault law in the state.

North Carolina isn’t a no-fault state but is instead a tort state, which helps keep the average cost of car insurance low. No-fault states generally require drivers to have a first-party medical benefit on their policies, like personal injury protection (PIP), which can be a pricey coverage to carry. Since PIP isn’t required in North Carolina (or even offered), rates hover at or below the national average.

While North Carolina has a large population, it isn’t one of the most densely populated states in America, nor does it have any of the most densely populated cities in America. Similarly, only about 7% of drivers in the Tar Heel State are uninsured, falling below the national average of about 12% of drivers. 

While all drivers are required to have auto insurance in North Carolina, drivers are only required to carry at least 30/60/25 liability and UM coverages. On average, though, drivers carry more coverage than the law requires.

North Carolinians generally carry full coverage policies with a few optional, additional coverage types from an insurer offering base rates below the state average and plenty of discounts. A full coverage policy offers drivers a wider range of coverage, appealing to those who value coverage over cost. 

The average full coverage policy in the Tar Heel State will likely contain higher limits of the legally required coverages, plus collision coverage, comprehensive coverage, underinsured motorist coverage (UIM), an FPMB like medical payments coverage (MedPay), and gap coverage, among others. 

On average, the car insurance cost per month in North Carolina is about $110 for a full coverage policy, or about $1,340 annually. Insurers may offer a discount to those who pay annually or twice annually, leaving the monthly premium a bit more expensive than the annual premium. 

While the cheapest policy in the state may be a minimum coverage policy that costs much less than the average cost of a full coverage policy, such a policy may not be the best fit for every driver.

The best policy in North Carolina will vary from driver to driver, but it will likely be a full coverage policy from an insurer that offers rates below the state average and plenty of discounts. While drivers may value cost over coverage, there are several ways to maintain an affordable policy without sacrificing coverage, like adding discounts.

Car insurance premiums for a new driver may cost more than the average premium in North Carolina, which is about $1,340 annually or about $110 monthly. New drivers often pay higher-than-average premiums because they have yet to prove their good driving skills to their insurer. Car insurance premiums ebb and flow, so while they may be expensive for a while, with consistent good habits behind the wheel, they’ll go down over time.

Whether searching for a policy at or below the average rate or simply curious about North Carolina auto insurance rates you’re eligible for, the best way to find the best policy for your needs and budget is to get and compare quotes online. By gathering and analyzing quotes online, you can see all your potential choices in one place to make the best choice about your policy.

Luckily, you’ve come to the quoting experts. Here at Clovered, we have a free quoting tool you can use to get unique quotes in minutes. If you’d rather chat with an expert, we have those too! You can contact one of our licensed agents at 833-255-4117 or [email protected].