The Cheapest car insurance in North Carolina For May, 2024

If you’re searching for the lowest-cost vehicle insurance in North Carolina, State Farm is an insurer that stands out from the back. Highly regarded for its affordable premiums and reliable service, it offers the best overall value for both minimum and full-coverage plans.

In this extensive guide, we compare different auto insurance options while focusing on cost-effectiveness. With over 10 years of experience in analyzing auto insurance policies, I’ve presented our findings to help you make sense of this complex market. My analysis isn’t surface level. I’ve thoroughly focused on dozens of premier auto insurance companies, assessing these insurers on various metrics to ensure you get the details that matter.

Keep in mind that skimping on auto insurance coverage can be more expensive in the long run, particularly in a state that presents the driving challenges that North Carolina does. My aim is to give you the knowledge to make a good choice that protects both your finances and your peace of mind on the road. So, get ready as Insuranceopedia explains the ins and outs of selecting the right coverage in North Carolina. You can get what you want without overspending.

Cheapest car insurance in North Carolina for minimum coverage

State Farm offers the lowest-cost minimum coverage vehicle insurance, with average monthly premiums of $42.

Minimum coverage in vehicle insurance is the most fundamental level of protection, lining up with the legal requirements established by the state of North Carolina. This basic type of insurance mostly includes two key components: Personal Injury Protection (PIP) and Property Damage Liability (PDL).

PIP covers medical costs and lost salary for you and your passengers, and it doesn’t matter who caused the accident, while PDL addresses the expenses of damage to another person’s property due to an accident you caused. This type of coverage is particularly appealing to drivers who are seeking an insurance solution that is cost-effective and meets the state’s legal requirements.

However, it’s vital to know that choosing liability-only coverage might have its shortcomings, especially in more complicated or serious accident scenarios. While it meets state law requirements and offers a basic safety net, minimum coverage does not cover many situations that comprehensive insurance plans cover.

For instance, it lacks collision or comprehensive insurance, meaning damages to your own car in a fender bender or other incidents like theft and natural disasters will not be covered. That means people must carefully reflect on their individual situation, their risk-tolerance level, and if they might want more coverage above the state’s minimum requirements to get proper protection on the road.

Cheapest car insurance in North Carolina for full coverage

State Farm has the lowest-cost full coverage vehicle insurance in North Carolina. You can get coverage for about $106 a month.

Full coverage vehicle insurance includes a more comprehensive range of protection compared to minimum coverage. That makes it an extensive choice for many people. This kind of policy usually brings together both comprehensive and collision insurance, forming a strong safety net. Comprehensive insurance addresses non-collision related events like vandalism, theft, and natural disasters, while collision insurance covers damages to your care in the event of a collision, regardless of fault.

This multi-layered approach ensures that people are safeguarded in many potential scenarios, from collisions to environmental damages. Comprehensive coverage is especially  recommended for people with newer-model vehicles or high-value cars, as these vehicles usually need more expensive fixes or replacements.

The cost of comprehensive coverage is usually higher than the cost of minimum coverage, but this higher cost comes with greater protection. For people with newer or costlier vehicles, this type of coverage is not just a suggestion but a necessity to protect their investment.

Cheapest car insurance in North Carolina for seniors

Elderly drivers can expect to pay $99 for cheap auto insurance using Erie.

Older drivers in North Carolina have the potential to get affordable premiums for their auto insurance, thanks to the certain things that work to their benefit. Age can be a substantial factor in deciding insurance premiums, with the rule of thumb being that drivers, as they age, lose some of their reflexes and driving skills. But this is not true across the board since many motorists maintain great driving records well into their senior years.

Insurers see this and usually reward such experienced elderly drivers with reduced rates. A good driving record, which features zero to few accidents or traffic infractions, can greatly sway insurance companies to offer better terms. Additionally, some insurance businesses acknowledge the maturity and expertise that come with age, viewing older drivers as responsible and less likely to take part in risky driving habits.

Further enhancing the allure for older motorists, some insurers offer price cuts specifically tailored to this age demographic. These price cuts can be based on different criteria, such as the driver’s age, how often they use their vehicle, and completion of senior driver safety programs. Many insurers want seniors to take defensive driving programs and often provide discounts upon successful completion. These courses are intended to refresh and update driving capabilities and knowledge, ultimately encouraging safer driving habits.

Cheapest car insurance in North Carolina for drivers with poor credit

If you have bad credit, you can get the cheapest auto insurance with Progressive. Premiums are around $110.

Credit score plays a vital role in the pricing of auto insurance rates, serving as a primary indicator for insurance businesses in determining a motor’s risk profile. The underlying understanding is that people with lower credit scores are more likely to file claims, which means these people are high-risk from an insurer’s perspective. A person deemed to be a high-risk person will have to pay higher car insurance rates.

Consequently, people with bad credit scores usually find themselves facing higher insurance expenses compared to drivers with better credit. The credit score is used as a way to figure out a driver’s overall responsibility and dependability, extending beyond their driving history to include their financial wherewithal and management skills.

Despite this trend, people with bad credit histories aren’t left without hope. Some insurers have tailored their options to help drivers in this demographic, offering more competitive premiums that are more lenient than what other insurers offer. These insurers often use a more holistic approach in determining risk, considering things beyond merely a credit score.

This can include a person’s driving history, where someone lives, and the kind of car they drive. For people with bad credit, it’s vital to shop around and compare rates from these specialized insurance providers. They may find that these insurers offer more lenient rates, making auto insurance more accessible and cost-effective despite their credit challenges.

Cheapest car insurance in North Carolina for young drivers in North Carolina

In North Carolina, young people usually benefit from lower auto insurance prices compared to teenagers. This pricing difference is due to the difference in age since young adults engage in less risky behaviors than teenagers behind the wheel. Statistically, young adults file fewer claims with insurance companies than teens, a factor that translates into lower rates of accidents. So, insurers reduce premiums in acknowledgement of the better safety records and reduced likelihood of claims from these more experienced motorists

Cheapest North Carolina car insurance for 16-year-olds

State Farm offers the lowest premiums for 16-year-olds, with an average monthly rate of $263.

Cheapest North Carolina car insurance for 17-year-olds

Nationwide has the lowest-cost rates for 17-year-olds, with an average monthly cost of $201.

Cheapest North Carolina car insurance for 18-year-olds

Nationwide has the lowest-cost rates for 18-year-olds, with an average monthly premium of $185.

Cheapest North Carolina car insurance for 21-year-olds

Erie has the most affordable rates for 21-year-olds, with an average monthly premium of $122.

Cheapest Car Insurance in North Carolina for Good Drivers

Good drivers, people who have exemplary driving records, are usually given lower car insurance rates. Insurance providers determine risk based on a driver’s history, and people without violations or collisions are deemed low risk. This favorable risk profile results from a history of responsible and safe motoring, suggesting a reduced likelihood of filing claims. 

Insurance companies are more open to offering these motorists more enticing premiums, reflecting the lessened financial risk they represent. For people who regularly obey traffic rules, avoid accidents, and practice safe driving behavior, this leads to big savings on their auto insurance premiums over time.

Cheapest Car Insurance In North Carolina For Drivers With Prior Incidents

North Carolina motorists with incidents, such as speeding tickets, collisions, or DUIs, typically face stiffer challenges when seeking affordable auto insurance. These incidents make them out to be high-risk as far as insurance providers are concerned. This high-risk tag is given due to the heightened risk of these motorists filing claims in the future. So, insurers boost rates for such motorists to offset the increased risk of financial payouts.

This is particularly accurate in North Carolina, where the rate of traffic issues can be higher than in other states across the U.S. The reasoning behind this pricing strategy is based on statistical data and risk assessment models, which show that a history of driving infractions correlates with a higher probability of future claims.

Cheapest car insurance in North Carolina for drivers with a speeding ticket

Progressive has average rates of $85, making it the most affordable option for people with a speeding ticket.

Cheapest car insurance in North Carolina for drivers after a DUI

Nationwide has average rates of $121, making it the most affordable option for people with a DUI on their record.

Cheapest car insurance in North Carolina for drivers with an at-fault accident

State Farm has average rates of $96, making it the lowest-cost option for people with an at-fault accident.

Average cost of car insurance in North Carolina

Average cost of car insurance – by city

Average cost in North Carolina – By age

Average cost in North Carolina – By credit tier

Average cost in North Carolina – By gender & marital status

Minimum car insurance requirements in North Carolina

The minimum requirements for auto insurance in North Carolina car insurance coverage are as follows:

• Bodily harm (individual): $30,000
• Bodily harm (multiple people): $60,000
• Property damage: $25,000

 In North Carolina, the law requires that all motorists carry a minimum level of auto insurance to operate a vehicle in the state legally. This requirement is founded on the Financial Responsibility Law and the No-Fault Law, which is intended to ensure that motorists can cover the fees connected with car accidents. Specifically, the law mandates two main types of coverage: Personal Injury Protection (PIP) and Property Damage Liability (PDL).

Personal Injury Protection (PIP) is vital even though North Carolina is not a no-fault state. The insurer of the at-fault driver will bear primary responsibility. The minimum PIP coverage required in North Carolina is $30,000 for one person or $60,000 for two or more people. This coverage also covers lost salary and death benefits, which is intended to offer a financial safety net for the policyholder and their family members.

Property Damage Liability (PDL) is the second required coverage in North Carolina. This insurance covers damages that the policyholder or their household members inflict on the property of others in a vehicle accident. The minimum coverage amount for PDL in North Carolina is also $25,000. PDL does not foot the bill for the policyholder’s care damages. It’s solely for the damages caused to another’s property.

Car insurance discounts in North Carolina

While seeking vehicle insurance, it makes sense to explore insurance companies that present the best discounts tailored to your situation. Additionally, talking to your insurance agent can uncover some price cuts that you might not already be using.

Below is more insight into some discounts offered by premier car insurance companies in North Carolina:

• Multi-policy: Combine multiple insurance policies with the same insurer.
• Homeowners: Homeowners can get this discount.
• Multi-vehicle: Insure multiple vehicles under the same policy or combine auto insurance policies.
• Safe car: Driving a car with the latest safety technology can earn a discount.
• Paperless: Choosing to get correspondence by email rather than by mail can save you money.
• Military: This applies to veterans and active-duty military members.
• Good driver: Maintaining a clean driving record (with zero at-fault collisions, DUI, or traffic infractions in the last three years) can lead to a discount.
• Senior: This is available to policyholders who are at least 55 years old.
• Good student: College, university, and high school students under 25 with a B average academically can get this discount.
• Defensive driving: Taking a qualifying defensive driving program earns a discount.
• Driver training: Taking a driver education training program earns a price cut.
• New car: Drivers who buy new vehicles qualify for a discount.
• Pay-in-full: Save on your auto insurance rate by paying in full up front.