Auto Insurance Costs In North Carolina: What To Expect

The cost of car insurance in North Carolina depends on several factors, including age, gender, driving record, location, and the level of coverage. The average cost of full coverage car insurance in the state is $1,077 per year, while the average cost of minimum coverage is $520 per year. The cheapest car insurance company in North Carolina is Erie, with an average rate of $770 annually. The most expensive insurer is Allstate, with an average annual rate of $2,129.

The average cost of car insurance in North Carolina

The cost of car insurance in North Carolina is dependent on several factors, including age, gender, location, and driving history. For example, younger and less experienced drivers tend to pay higher insurance premiums, with 16-year-olds paying an average annual rate of $2,649.93 and 17-year-olds paying $2,062.91. On the other hand, seniors aged 60 and older can expect to pay an average of $857.75 annually.

Location also plays a role in determining insurance rates, with some cities in North Carolina being more expensive for car insurance than others. Newell, Charlotte, Fort Bragg, and Pope Army Airfield are among the most expensive cities, while Alexander, Leicester, Candler, and Weaverville are among the cheapest.

When it comes to insurance providers, Erie, State Farm, North Carolina Farm Bureau, Nationwide, and Penn National are considered the cheapest options in North Carolina. The average cost of full coverage with Erie is $1,043 per year, while State Farm offers full coverage for an average of $1,287 per year.

It is worth noting that insurance rates in North Carolina have been increasing, with a 4.5% increase in 2023 and another 4.5% increase expected in 2024.

Factors that affect insurance costs

Several factors influence the cost of auto insurance in North Carolina. Here are some key considerations:

Age and Driving Experience:

Age is a significant factor in determining insurance rates, especially for young drivers. Teen drivers are considered high-risk and tend to pay the highest premiums. Insurance costs decrease as drivers gain more experience and age, with the lowest rates typically for those in their mid-50s. In North Carolina, the average annual rate for 16-year-old drivers is $2649.93, while for 20-29-year-olds, it drops to $875.07.

Driving Record:

A history of traffic violations, accidents, or DUI/DWI convictions significantly impacts insurance rates. Insurance companies view these as indicators of risky driving behaviour and charge higher premiums to cover potential claims. In North Carolina, an at-fault accident can increase rates by an average of $311.77 annually, while a DUI can result in an average increase of $792.25 per year.

Location:

The cost of auto insurance varies across North Carolina. Cities like Newell, Charlotte, Fort Bragg, and Pope Army Airfield tend to have higher insurance rates due to factors such as higher traffic, accident rates, and vehicle repair costs. On the other hand, cities like Alexander, Leicester, Candler, and Weaverville are known for having lower insurance premiums.

Credit History:

Insurance companies use credit scores to assess the reliability of drivers. Those with good to excellent credit ratings tend to be considered lower-risk and are rewarded with lower insurance rates. In North Carolina, drivers with excellent credit can save up to $171.49 annually on their insurance premiums compared to those with poor credit.

Vehicle Type:

The make, model, and age of your vehicle also impact insurance rates. Luxury vehicles, newer models, and sports cars tend to be more expensive to insure due to higher repair or replacement costs. Insurance companies consider the average cost of claims for different vehicles when setting rates.

Marital Status:

Marital status can also influence insurance rates, with married drivers often paying slightly less than single drivers. Insurance companies perceive married individuals as more financially stable and less likely to take risks, resulting in lower premiums.

Gender:

In North Carolina, gender plays a minor role in determining insurance rates. On average, men pay slightly less than women, with an annual difference of around $4. However, gender can have a more significant impact on insurance rates for young drivers, with male teen drivers typically paying higher premiums than their female counterparts.

Insurance History:

Insurance companies view continuous coverage as a positive indicator when setting rates. Gaps in insurance coverage or a lack of insurance history may result in higher premiums, as insurers perceive these as signs of higher risk.

Coverage Selections:

The type and amount of insurance coverage you choose will also impact your rates. While minimum coverage may be cheaper, it's important to ensure you have adequate protection. Collision and comprehensive coverage, medical expense coverage, and uninsured motorist insurance are additional options to consider, depending on your needs.

Discount Options:

Insurance companies offer various discounts that can help lower your insurance costs. These may include good driver discounts, good student discounts, multi-policy discounts, and more. It's worth reviewing the available discounts with your insurance provider to see if you're eligible for any savings.

Car insurance for young drivers

There are a few reasons why car insurance is more expensive for young drivers. Firstly, insurance companies consider teens a higher risk because inexperienced drivers are more likely to get into accidents. In fact, according to the Centers for Disease Control and Prevention, the risk of motor vehicle crashes is higher among 16- to 19-year-olds than among any other age group. Secondly, young drivers have less driving experience, which is a factor that influences insurance premiums.

There are a few things that young drivers in North Carolina can do to get cheaper car insurance. One way is to shop around and compare quotes from different insurance companies, as prices can vary. Another way is to take advantage of discounts offered by insurance companies. For example, many companies offer good student discounts for students who maintain a B average in their courses. Additionally, young drivers can choose to buy a safer and more reliable car, as the make, model, and year of the vehicle can also impact insurance premiums.

It's important to note that in North Carolina, you are required to have auto liability coverage to drive legally. Driving without insurance can result in fines, suspension of your vehicle registration, and even impoundment of your vehicle.

Car insurance for high-risk drivers

The average cost of car insurance in North Carolina is $2,040 annually for full coverage and $609 annually for state-required minimum coverage. However, if you are a high-risk driver, you will likely pay more than the average driver.

High-risk drivers are those with a history of traffic citations, accidents, speeding tickets, DUI/DWI convictions, or lapses in insurance coverage. Young or inexperienced drivers, as well as those with poor credit, are also considered high-risk. Insurance companies view these drivers as more likely to file claims and, therefore, charge higher rates or even refuse to provide coverage.

• Compare quotes from multiple insurance companies, including Geico, State Farm, Erie, and Progressive. These companies offer competitive rates for high-risk drivers, with Geico consistently offering the cheapest high-risk car insurance.
• Improve your credit score, as this can help lower your insurance premium.
• Take a defensive driving course to demonstrate your commitment to safe driving.
• Consider bundling your car insurance with other policies, such as home or renters insurance.
• If you are a military member or veteran, USAA offers competitive rates and discounts.
• If you are unable to find coverage through standard insurance companies, consider non-standard insurance companies like The General, Safe Auto, or National General, or look into state-sponsored auto insurance plans.

Cheapest car insurance companies in North Carolina

The cost of car insurance in North Carolina varies depending on several factors, including age, gender, marital status, driving record, and location. The average cost of car insurance in the state is $1,165 per year, which is lower than the national average.

Erie

Erie is the cheapest insurer in North Carolina, with an average annual rate of $770, or about $64 per month. They also offer the lowest rates for married 35-year-old drivers, good drivers, drivers with an accident on their record, and drivers with a speeding ticket.

State Farm

State Farm offers the cheapest car insurance for 17-year-old drivers, young adults, and new drivers with a speeding ticket or accident. Their rates for these groups are significantly lower than the state average.

National General

National General has the cheapest rates for drivers with a DUI on their record and those with poor credit. Their rates for these groups are significantly lower than the state average.

Progressive

Progressive offers the cheapest rates for full coverage car insurance in North Carolina, at $61 per month. They also have the cheapest rates for drivers with poor credit and those with a speeding ticket.

USAA

USAA provides affordable insurance for active-duty military members, veterans, and their families in North Carolina.

Frequently asked questions