Finding cheap car insurance in North Carolina that still complies with state requirements for minimum or full coverage is doable with many companies located throughout the state. When purchasing affordable insurance, the rate is based on a number of factors specific to each company. Getting a quote from different insurers and comparing them can narrow down the choices, which can help make the choosing the right insurance company easier.
Image via Flickr by franchiseopportunitiesphotos
What is Minimum Coverage Car Insurance?
North Carolina requires minimum insurance car coverage which is the lowest amount of coverage allowed in any given state. For North Carolina, this includes bodily injury coverage as well as coverage for property damage.
Cheap car insurance coverage ranges from $344 to $730, using seven companies for analysis for 2022. When purchased, the policy helps protect your assets and covers the amount due to the driver involved in an accident that you caused. While you’ll be in compliance having the required $30,000 or $60,000 for bodily injury, and $25,000 coverage for property damage, it may not be enough to cover all costs, which may be covered with full coverage. The insurance companies with the cheapest rates in North Carolina are as follows:
- Erie – $344 annual rate – $29 monthly rate
- Farm Bureau – $380 annual rate – $32 monthly rate
- State Farm – $435 annual rate – $36 monthly rate
- GEICO – $480 annual rate – $40 monthly rate
- Progressive – $488 annual rate – $41 monthly rate
- Nationwide – $586 annual rate – $49 monthly rate
- Allstate – $730 annual rate – $61 monthly rate
Erie’s $344 annual rate is the cheapest quote for vehicle insurance that complies with the minimum coverage requirements for the state. Their cost for insurance is 32 percent cheaper than the average for the entire state.
What is Full Coverage Car Insurance?
In North Carolina, full coverage insurance is double, or more, of the cost of minimum coverage. The policy is designed to exceed what minimum coverage takes care of such as medical payments. Full coverage also includes the option of adding collision and comprehensive insurance, which covers replacement and repairs to your vehicle, which minimum coverage does not. Collision and comprehensive may be required by the lender for leased vehicles or by the financial institution. The average cost of full coverage insurance is $1,291 annually, which is $799 more than a minimum coverage policy. This range for the full coverage cost for the seven insurance companies to be $880 to $2,015 annually. The companies and cost breakdown are as follows:
- Erie – $880 annual rate – $73 monthly rate
- Farm Bureau – $902 annual rate – $75 monthly rate
- State Farm – $1,015 annual rate – $85 monthly rate
- GEICO $1,211 annual rate – $101 monthly rate
- Progressive – $1,218 annual rate – $101 monthly rate
- Nationwide – $1,797 annual rate – $150 monthly rate
- Allstate – $2,015 annual rate – $168 monthly rate
Why is Minimum Coverage Cheaper Than Full Coverage Car Insurance?
When choosing minimum coverage insurance required by the state, drivers incur a lower cost because the policy does not include comprehensive and collision coverage. Also, the liability coverage limits are low for minimum insurance coverage, which puts the driver at risk of not having adequate protection in the event of an accident.
Cheapest Insurance for Drivers With a History
Depending on the type of incident a driver has been involved with affects the cost of insurance with higher rates. This can be a significant increase. While an at-fault accident on a driver’s record can increase the cost of insurance by over 50 percent, there are still companies in North Carolina offering cheap insurance.
Several situations that can raise the cost of insurance but still be affordable include accidents, speeding tickets, driving under the influence, or driving while intoxicated, and poor credit.
Of the four, driving under the influence or driving while intoxicated has a triple effect on the cost of insurance that averages an increase of $5,090.
- Farm Bureau – $3,445 annual rate – $287 monthly rate
- Erie – $3,604 annual rate – $300 monthly rate
- Progressive – $4729 annual rate – $394 monthly rate
- GEICO – $4976 annual rate – $415 monthly rate
- Nationwide – $5,204 annual rate – $434 monthly rate
- Allstate – $8,583 annual rate – $715 monthly rate
Comparing Quotes for North Carolina Cheap Car Insurance
Comparing quotes from different insurers is an important step in getting the lowest rate. Keep in mind, each insurance company has its own criteria and rating system, so it is to your advantage to get as many quotes as possible to compare. Some of the categories insurance rates are based on include the following:
- Good drivers
- Drivers with speeding tickets
- At-fault accidents
- Full coverage
- Old drivers
- Young drivers
- Poor credit
A list of the cheapest insurers for 2022 providing minimum coverage in North Carolina has six of the seven insurance companies also analyzed by other sites, but , as noted, there will be differences between the quotes. This is due to factors such as age, where you live within the state, the type of vehicle being insured, credit rating, and driving history.
For more comparisons, check additional information for affordable insurance that notes GEICO, Erie, NC Farm Bureau, State Farm, and Auto Owners as being the insurance companies with the cheapest rates. It is also noted that in a national study on cheap car insurance, North Carolina ranked in 13th place due to the many rural areas where North Carolina residents live, which brings down the cost of insurance. This is because the rural areas see less crime and less traffic since there aren’t as many vehicles on the streets and highways.
Auto Insurance Laws for North Carolina
Like every state, there are certain insurance requirements that must be maintained in order to drive legally. In North Carolina, drivers must have the minimum or more of the following levels:
Liability
- $30,000 per person for bodily injury
- $60,000 per accident for bodily injury
- $25,000 per accident for property damage
Uninsured and Underinsured Motorist
- $30,000 per person for bodily injury
- $60,000 per accident for bodily injury
- $25,000 per accident for property damage
Drivers also have the option of adding additional coverage offered by insurance companies. Not all companies offer all the options:
- Collision
- Comprehensive
- Lease payoff
- Loan payoff
- Medical payments
- Reimbursement for a rental car
- Roadside assistance
Car Insurance Companies in North Carolina
Along with the insurance companies already listed, there are a few more to consider when searching for cheap car insurance in North Carolina:
- Metropolitan
- Penn National
- Safeco
- Travelers
North Carolina Cheap Car Insurance
With multiple companies offering affordable car insurance, drivers have plenty of choices in getting quotes for the cheapest vehicle insurance in North Carolina.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
