In most states, car insurance rates vary dramatically among insurers. Differences are smaller in the Tar Heel State because of certain laws, but drivers looking for cheap auto insurance in North Carolina can still save quite a bit by shopping around and comparing rates.
To help, NerdWallet looked at car insurance quotes from the five largest insurance companies in North Carolina and found the three cheapest options for these distinct driver types:
Cheapest for good drivers
For drivers with no at-fault accidents, DUIs or moving violations; range of average prices: $687 to $1,037 a year
The average annual premium for good drivers among the three cheapest companies was $884. Auto insurance companies love safe drivers. If you have no at-fault accidents or moving violations, you’ll usually get pretty competitive rates, but you’ll still have to shop around for the top deal. We found a range of almost $400 between the lowest and highest quotes in this category. Good drivers also might qualify for safe-driver discounts, which vary by company.
Cheapest for young drivers
For drivers in their early 20s; range of average prices: $355 to $411 a year
Drivers in their early 20s can often get by with less coverage than older motorists, who may have families and pricy assets to worry about, and as a result can find very cheap auto insurance in North Carolina. The state also bans insurers from basing rates solely on age, which helps, too. It’s hard for young drivers to go wrong with any of the three cheapest companies from our test; they all notched sample premiums under $35 a month. In fact, overall this category only had about $50 difference between lowest and highest estimates, an extremely small gap.
Cheapest for families with one teen driver
For middle-aged couples with one teen driver; range of average prices: $2,506 to $2,753 a year
Teens bring heightened accident risk to their parents’ policy, and typically heightened car insurance rates to boot. The three lowest rates for this category were about $1,500 to $2,000 per year more than the three lowest for good drivers on a solo policy. Parents should look for discounts their teens can bring to the table to help keep costs down — such as those for scoring good grades or attending school away from home.
Cheapest for drivers with poor credit
For drivers placed in the lowest credit tier as determined by the industry; range of average prices: $978 to $1,046 a year
Insurers see credit-based insurance scores as strong indicators of future claims, and may charge more from drivers with poor credit. In our study, the lowest average quote for a good driver went up by about $300 because of credit issues. But again, North Carolinians can benefit from a lower price variance that most drivers around the country. Less than $70 separated the lowest and highest estimates, meaning drivers can shop with confidence knowing they should be able to avoid outlandishly high quotes.
Cheapest for retired drivers
For drivers in their mid- to late 60s who no longer use their car for commuting; range of average prices: $687 to $1,037 a year
Again, North Carolina doesn’t allow insurers to base premiums on age. Also in retirees’ favor is the fact that they generally travel fewer annual miles than other groups. It all adds up to pretty attractive car insurance rates. In fact, the lowest average quote we found for retired drivers was identical to the lowest for good drivers half their age. Older motorists should also look to cut costs with a mature driver discount, generally starting at age 55, available from certain companies.
Minimum car insurance requirements in North Carolina
North Carolina law requires drivers to carry liability insurance, uninsured motorist bodily injury coverage (UMBI) and uninsured motorist property damage coverage (UMPD) in the following amounts:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
- $30,000 UMBI per person
- $60,000 UMBI per accident
- $25,000 UMPD per accident
While this will satisfy legal driving requirements, the bare minimum may not provide the soundest financial protection. A severe crash with someone driving a luxury car brand, for instance, could easily leave you owing more than $25,000 in vehicle repairs. And if you carry only the minimum limits, any extra costs would be up to you to pay.
Check out NerdWallet’s guide to state car insurance requirements for more details on how your coverages work and what options might make sense for your North Carolina policy.
Alternative car insurance in North Carolina
Drivers who are denied car insurance on the voluntary market — because of poor credit, DUIs or other factors — can shop for coverage and get quotes through North Carolina’s assigned and high-risk plans.
Budget-conscious shoppers can also use NerdWallet as their go-to source for the most competitive car insurance quotes in North Carolina. Our comparison tool lets you view estimates from leading companies side-by-side so you can easily get the coverage you need at the best price.
METHODOLOGY
For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits, 100/300 uninsured motorist bodily injury coverage limits and $50,000 uninsured motorist property damage coverage. We used a 2012 Toyota Camry in all cases.
To test rates for families with teen drivers, we requested quotes for a 46-year-old female and 47-year-old male with a 16-year-old son. Our sample retired driver was 67 and drove 50% fewer annual miles than other groups. Our sample young driver was 22 and carried the minimum required coverage. These are sample rates generated through Quadrant Information Services. Your own rates will be different.
Alex Glenn is a staff writer for NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com.
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