Auto Insurance Score: North Carolina's Unique Rating System

An auto insurance score is a rating of an individual's creditworthiness, based on information from their credit report. It is used by insurance companies to determine the level of risk associated with an individual and is a key factor in calculating insurance premiums. In North Carolina, the average cost of full-coverage car insurance is $1,741 per year, or $145 per month, while the state minimum coverage costs $476 annually. Factors such as age, driving record, and credit score can influence insurance rates, with younger and high-risk drivers often paying higher premiums.

How does auto insurance in North Carolina compare to other states?

Auto insurance in North Carolina is relatively affordable compared to the national average. The average annual premium for full coverage with a $1,000 deductible in North Carolina is about $1,185 ($99 per month), compared to the national average of $1,317 per year ($110 per month).

When compared to other states, North Carolina's auto insurance rates are quite competitive. For example, Virginia, a neighbouring state, has an average rate of $2,027 for full coverage and $675 for minimum coverage. South Carolina, another neighbouring state, has average rates of $1,797 for full coverage and $567 for minimum coverage.

North Carolina's auto insurance rates are influenced by a variety of factors, including the state's competitive insurance market and efficient state insurance regulatory framework. The state also has fewer uninsured drivers, which helps to keep premiums in check. Additionally, North Carolina requires drivers to carry liability insurance and uninsured motorist coverage, which provides added protection in the event of an accident.

When compared to other states, North Carolina's auto insurance market is quite diverse. The state is home to both large, national insurance providers as well as smaller, regional insurers. This competition helps to keep rates low and provides consumers with a variety of coverage options and discounts to choose from.

Overall, auto insurance in North Carolina is relatively affordable and offers a range of options for consumers. The state's competitive market and efficient regulatory framework contribute to keeping premiums in check, making it a good choice for drivers looking for quality coverage at a reasonable price.

What are the minimum auto insurance requirements in North Carolina?

In North Carolina, drivers are required by law to carry both liability and uninsured/underinsured motorist insurance coverage before registering their vehicles. The minimum coverage requirements in North Carolina are as follows:

• Bodily injury liability coverage: $30,000 per person and $60,000 per accident. This covers the cost of the other party's personal injuries if you are found to be the at-fault driver in a car accident.
• Uninsured motorist bodily injury coverage: $30,000 per person and $60,000 per accident. This protects you if you are injured in an accident caused by an uninsured driver.
• Uninsured/underinsured motorist property damage coverage: $25,000. This covers damages to your property in an accident caused by an uninsured or underinsured driver.
• Property damage liability coverage: $25,000. This covers the cost of damage to another person's property if you are at fault in an accident.

These requirements are set to change in January 2025, with the minimum liability coverage being raised to $50,000 for property damage and $50,000 per person or $100,000 per accident for personal injury. The changes will make North Carolina one of the states with the most expensive minimum auto insurance requirements in the country.

What are the penalties for driving without auto insurance in North Carolina?

Driving without insurance in North Carolina is considered a Class 1 misdemeanour and can result in several penalties. The state has a complicated sentencing system that takes into account the driver's prior criminal record. The penalties increase in severity for each subsequent offence.

For a first offence, drivers will have to pay a $50 civil penalty and a $50 reinstatement fee, and may be placed on probation for 1-45 days. Their registration and license plates could be suspended for 30 days.

If caught a second time, the civil penalty increases to $100, and the judge could sentence the driver to jail or probation for up to 45 days. The other penalties are the same as those for a first offence.

For a third and subsequent offence, the civil penalty increases to $150. All other penalties are the same as for a second offence conviction.

If a driver is involved in an accident while uninsured, they will be held financially responsible for all property damages and medical costs.

What is the average cost of auto insurance in North Carolina?

The average cost of car insurance in North Carolina is $1,275 per year for full coverage, compared to the national average of $1,582. The average cost of state-minimum coverage is $489 per year. However, the cost of car insurance in North Carolina varies depending on several factors, including age, driving history, and credit score.

Average Cost of Car Insurance in North Carolina by Age

Young drivers in their teens pay significantly more for car insurance than other age groups, with an average annual rate of $2,649.93 for 16-year-olds. As drivers get older and gain more experience, rates tend to decrease. For example, the average annual rate for 19-year-olds is $924.79, while 20-29-year-olds pay around $875.07.

Drivers in their 30s and 40s can expect to pay around $858.96 and $849.97, respectively. Rates may increase slightly for drivers in their 50s and 60s, with average annual rates of $842.29 and $857.75, respectively. Seniors aged 70 and above will see a slight increase in their rates, paying around $895.77 per year.

Average Cost of Car Insurance in North Carolina by Driving History

The cost of car insurance in North Carolina is also influenced by a person's driving record. A single speeding ticket can increase premiums by $559, while a DUI conviction will result in a much higher increase of $2,862. On average, drivers with a DUI in North Carolina pay $3,550 per year for full coverage.

Average Cost of Car Insurance in North Carolina by Credit Score

Credit scores can also impact car insurance rates in North Carolina. Drivers with a credit score of 750 or higher benefit from lower premiums, paying an average of $1,114 per year. In contrast, those with poor credit scores pay significantly more, with an average annual premium of $1,006.36.

Cheapest Car Insurance Companies in North Carolina

When it comes to finding the cheapest car insurance in North Carolina, rates vary among providers. Erie Insurance is often the most affordable option, offering minimum coverage for as low as $363 per year and full coverage for around $1,000 per year. Other inexpensive options include State Farm, Progressive, and Nationwide.

Which companies offer the cheapest auto insurance in North Carolina?

The cheapest car insurance in North Carolina is offered by Erie Insurance, Progressive, State Farm, and Nationwide.

According to MarketWatch, the best cheap car insurance providers in North Carolina are Erie Insurance, State Farm, Progressive, and Nationwide. Progressive offers the cheapest full-coverage and minimum liability car insurance in the state. However, State Farm, Nationwide, and Erie Insurance are also worth considering.

WalletHub also lists Erie, Nationwide, and NC Farm Bureau as the cheapest car insurance companies in North Carolina.

Bankrate's analysis found that State Farm and Erie may offer lower-than-average car insurance rates for North Carolina drivers. Progressive is also listed as the cheapest company for full coverage.

NerdWallet's analysis found that Progressive offers the cheapest full coverage in North Carolina, with an average rate of $902 per year. Erie offers the cheapest rates for minimum coverage, at $427 per year.

U.S. News also found that Erie is the cheapest insurer in North Carolina, with a sample rate of $770 annually.

Frequently asked questions