Whether you’re moving to North Carolina or already live in this state, you might be wondering about the area’s car insurance rates. Residents can choose from tons of providers to find an affordable rate that meets their needs. Check out this guide to learn about North Carolina car insurance rates and view tips for securing the best deal.
How Much Is Car Insurance in North Carolina?
According to U.S. News, the average car insurance rate in North Carolina is $1,018 per year. This rate is the seventh-lowest in the country and about $300 lower than the national average. Providers are able to offer lower rates because of the state’s relatively mild weather conditions and few legal requirements for insurance.
What Is the Cheapest Car Insurance Provider in North Carolina?
Different formulas result in different rates between providers, but the cheapest provider in North Carolina tends to be GEICO. The average rate is $673 per year or about $56 per month. A provider that tends to drive up North Carolina’s average rate is Allstate, which provides an average rate of $1,710 per year or about $142 per month. Companies like State Farm and Progressive have averages of $963 and $1,216 per year, respectively, making them a more accurate representation of the statewide average.
What Type of Car Insurance Does North Carolina Require?
North Carolina requires drivers to have the following types of insurance:
- Bodily injury liability: This type of insurance covers someone else’s medical bills if they get injured in an accident you cause. The state minimums for bodily injury liability are $30,000 per person and $60,000 per accident.
- Property damage liability: The minimum requirement for property damage liability coverage is $25,000. This insurance helps pay for any damage you cause to another person’s vehicle or property.
- Uninsured motorist bodily injury: This coverage pays for your medical bills if you’re involved in a hit-and-run accident or if the at-fault driver doesn’t have insurance. Like with bodily injury liability, the minimum requirements are $30,000 per person and $60,000 per accident.
- Uninsured/underinsured motorist property damage: North Carolina drivers must have an uninsured/underinsured motorist property damage policy that covers at least $25,000. This insurance pays for an underinsured driver’s damages to your vehicle.
What Coverage Is Optional for North Carolina Drivers?
Many North Carolina drivers try to save on their monthly premiums by only obtaining the state’s required insurance. However, you may want to get peace of mind by adding coverage to your policy. For instance, many drivers opt for comprehensive coverage that provides protection in the event of non-collision incidents like theft or fire.
Collision coverage helps pay for repairs when your vehicle collides with another vehicle or object. There are also provider-specific policies like roadside assistance which allows you to take advantage of fuel delivery and lockout services. While this additional coverage will increase your monthly premiums, it can help you protect yourself, your vehicle, and your family.
What Factors Affect Car Insurance Rates in North Carolina?
Here are some key factors that affect car insurance rates in North Carolina:
Your city can have a significant impact on the cost of your car insurance. Larger cities tend to have higher rates because of increased medical care and vehicle repair costs. A big city may also have more traffic which can lead to an increase in accidents. If you live in a big city like Charlotte, Raleigh, or Greensboro, your rates may be higher than if you live in a smaller city like Asheville or High Point.
Insurance companies classify younger drivers as high-risk, meaning rates tend to be higher for teenagers. This demographic can save money by sharing their parents’ insurance instead of purchasing their own policies. While rates remain somewhat high in your early 20s, they tend to decrease as you get older and gain more driving experience.
Your Driving Record
Insurance providers favor clients with clean driving records by offering them lower rates. Incidents like DUIs, reckless driving citations, speeding tickets, and open container infractions can significantly raise your monthly premiums. You may also face an increased rate if you’ve been in an accident that was your fault.
Your Credit Score
Insurance companies also favor clients who have higher credit scores, as they’ve proven their ability to make payments on time and are less likely to file expensive claims. An “exceptional” or “very good” credit score can help you secure an affordable rate. Some providers are willing to work with drivers who have poor credit and offer them more affordable rates than they would be able to get elsewhere.
How Can You Secure Affordable Car Insurance in North Carolina?
Here are some tips for securing affordable car insurance in North Carolina:
- Consider regional providers. While national providers are widespread in North Carolina, you might be able to obtain a cheaper rate by going through a regional provider like Erie Insurance or North Carolina Farm Bureau.
- Maintain coverage. Even if you don’t own a car during a gap period, lapses in insurance often cause rates to increase for North Carolina drivers.
- Be selective with your coverage. You can save big by only obtaining the state’s required coverage and forgoing optional insurance like collision and comprehensive coverage, especially if you own an older vehicle.
- Search for discounts. Many North Carolina providers offer discounts for being a student, homeowner, veteran, or even a client who chooses to go paperless.
As this guide has demonstrated, North Carolina is one of the most affordable states to insure a car. Remember that state laws require you to obtain minimum coverage, though higher premiums allow you to expand your policy and take advantage of additional protection. As you compare rates from providers, keep in mind that factors like your city and driving record affect the deal you can get.
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.