How to Find Cheap Auto Insurance in North Carolina

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Whether you’re a Tar Heel going to school in Chapel Hill, heading to the Great Smoky Mountains National Park for a weekend adventure, or one of the 870,000 people who live in Charlotte, there are plenty of places to go in the Tar Heel State if you have enough gas in your tank. 

Many drivers strive to save on their North Carolina auto insurance policies so they have enough money left over to spend on the fun experiences the state has to offer. Luckily, finding an auto insurance policy in the Tar Heel State that doesn’t break the bank isn’t as hard as you may think. Let’s check out who has the cheapest policies in the state, how you can maximize your policy savings and other creative ways to save on your car insurance. 

How to Find Cheap Auto Insurance in North Carolina

The cheapest car insurance in North Carolina will vary from driver to driver, insurer to insurer, and policy to policy, as the cost of auto insurance premiums is highly subjective. Generally, the cheapest policy drivers can bind is a minimum coverage one that meets the state’s coverage requirements but doesn’t exceed them. 

North Carolina laws about car insurance require 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 (30/60/25 liability coverage). The law also requires drivers to have at least 30/60/25 uninsured motorist coverage (UM) on their policies. Drivers who lease or finance their vehicles may also be required to have collision and comprehensive coverages on their auto insurance policies.

The average full coverage premium in the Tar Heel State costs about $1,340 annually, or about 20% less than the national average of $1,670 annually. That said, the cheapest full coverage car insurance in North Carolina will always be more expensive than a minimum coverage policy since such a policy contains more coverage than the state’s minimum limits require.

A minimum coverage policy will generally have about half the amount of coverage as the average full coverage policy, and premiums will be about half the cost. Since the average full coverage policy in North Carolina costs about $1,340, the average minimum coverage policy will be in the ballpark of about $670 annually. While a minimum coverage policy will certainly be the cheapest, it may not be the best policy for every driver.

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Who Has the Cheapest Car Insurance in North Carolina?

When hunting for cheap car insurance in North Carolina, drivers will undoubtedly notice State Farm has some of the lowest rates, especially with just a minimum coverage policy. Base rates for a full coverage policy with this insurer average at about $840 annually, meaning the average minimum coverage policy may be as low as $420 annually.

However, one must remember that while base rates from this insurer are much lower than the average rate in the state, premiums always vary depending on various factors.

Drivers can be quoted at vastly different premiums for the same policy from the same insurer, even within the same ZIP code. Insurers use several subjective facts about each driver to determine their rates, so while your rates may hover around the state average, your neighbor’s may be much higher or lower. Insurers tend to use factors like one’s insurance history, driving record, gender, age, and ZIP code, among other factors, to calculate premiums. 

The factors insurers use to determine one’s rates inform the insurer of the driver’s risk of filing a claim. If a driver is at a higher-than-average risk of filing a claim, they may receive a quote for higher-than-average premiums. Nonetheless, binding a policy with one of the top insurers in the state, like State Farm, may help drivers ensure they’re getting the lowest rates available. 

What’s the Best Cheap Car Insurance in North Carolina?

Regardless of whether you’re on the hunt for low income car insurance in North Carolina or just in the market for a deal, the best way to lower your premiums in the Tar Heel State is to bind a minimum coverage policy with an insurer that offers lower-than-average base rates and plenty of stackable discounts.

Many of the top insurers in the state, like State Farm, Progressive, and Geico, offer rates lower than the state average and several discounts policyholders can use to save on their premiums. 

What’s the Cheapest Insurance in North Carolina?

In North Carolina, car insurance premiums may dip below the state average of $1,340 annually for a full coverage policy, depending on the driver’s characteristics and history. However, the cheapest car insurance in the Tar Heel State is a policy with 30/60/25 liability and uninsured motorist coverage (UM) and nothing more.

While minimum coverage policies certainly get the job done, they may not offer as much peace of mind as a full coverage policy. In fact, many North Carolinians prefer to bind a full coverage policy over a minimum coverage one for the added protection. Although a full coverage policy will always be more expensive than a minimum coverage one by nature of what it offers, there are several ways drivers can lower their premiums without sacrificing coverage. 

Many insurers, especially those with a large national presence, offer discounts policyholders can combine to lower their premiums. Generally, discounts fall into two categories: criteria-based and enrollment-based.

Criteria-based discounts require the policyholder to meet criteria, like being a certain age or an active or past military member. Enrollment-based discounts, however, require policyholders to take an active part in their savings and complete a task before they receive their discount.

Some common criteria-based discounts are a student discount for those who get good grades in school, a bundling discount for those who purchase multiple insurance products from the same provider, or a multi-car discount for those with multiple cars on a policy. 

Enrollment-based discounts are often related to a driver’s behavior on the road. Some common enrollment-based discounts require policyholders to enroll in a usage-based program, in which drivers use a telematics device to track their driving habits and send their data to their insurer.

Along the same vein, some insurers may offer a good driver program in which drivers enroll in a course where, upon passing an exam or completing course materials, the driver may earn some money off their premiums, helping take a step towards cheap insurance in North Carolina.

Applying and combining discounts is the safest way drivers can reduce their premiums since discounts don’t require drivers to sacrifice their coverage in the name of savings. While the savings may be more significant when reducing one’s coverage from full to minimum, one may be able to save up to 25% on their full coverage policy with discounts applied. 

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How To Get Cheap Liability Car Insurance in North Carolina

The most affordable car insurance in North Carolina will always be a minimum coverage policy. A minimum coverage policy in the Tar Heel State will have 30/60/25 liability and UM coverage. A policy with anything less is considered insufficient, and the driver would be considered uninsured.

Generally, a minimum coverage policy in North Carolina will cost about $670 annually, or half the price of the average full coverage premium in the state ($1,340). Drivers may also lower their premiums by stacking discounts offered by their insurer. Discounts may lower one’s premiums by up to 25%.

While auto insurance premiums can get pricey and forgoing coverage altogether can be tempting, it’s essential to remember that driving without coverage in the Tar Heel State is illegal. Those caught without a policy or lacking adequate coverage may be subject to fines, fees, license and registration suspension, or even jail time. 

Drivers who fail to maintain adequate coverage may also require an SR-22 form to be filed on their behalf. The form, otherwise known as a DL-123 in North Carolina, signifies to insurers and to the state that a driver is prone to making risky decisions behind the wheel. Those with the form on their record must maintain a minimum coverage policy lest they face more severe legal trouble. High-risk drivers generally pay higher premiums, even on a minimum coverage policy.

Is Car Insurance Cheaper in North Carolina?

Not every driver will be eligible for low-cost auto insurance in North Carolina, but the average premium on a full coverage policy in the state costs less than the national average. In fact, North Carolina is one of the cheapest states for auto insurance. From our calculations, North Carolina is the 13th cheapest state for auto insurance. 

Since North Carolina isn’t a no-fault state but a tort state, the average cost of a full coverage policy is naturally lower than in other states. No-fault states typically require drivers to carry personal injury protection, or PIP, which can cause auto insurance rates to increase significantly. However, drivers can’t get PIP in the Tar Heel State, so the rates remain lower than average.

How To Get North Carolina Car Insurance Quotes

It can be difficult to sort through all the cheap car insurance companies in North Carolina to find the best policy for your needs, especially considering the Tar Heel State has some of the lowest car insurance premiums in the country.

The best way to find a policy that suits your needs (and your budget) is to gather and compare quotes online. Getting and comparing quotes online allows drivers to see all the rates they qualify for so they can make the most informed decision about their policy.

Lucky for you, you’ve come to the quoting experts. Here at Clovered, we even have a free quoting tool you can use to access your quotes and start saving in minutes. If you’d rather chat with a pro, you can contact one of our licensed agents at 833-255-4117 or

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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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