Car Insurance in North Carolina
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Introduction: Car Insurance in North Carolina
North Carolina has over 7 million licensed drivers, making it a key state for auto insurance. Whether you’re driving through Charlotte’s busy streets, commuting in Raleigh, or taking a scenic drive along the Blue Ridge Parkway, car insurance in North Carolina is a legal requirement and provides essential financial protection.
North Carolina is known for its moderate car insurance rates compared to the national average. According to the National Association of Insurance Commissioners (NAIC), the average annual cost of full coverage in North Carolina is $1,392, which is lower than the national average of $1,674.
North Carolina Car Insurance Requirements (State Laws & Minimum Coverage)
Minimum Liability Coverage (30/60/25 Rule)
According to the North Carolina Department of Insurance (NCDOI), drivers must carry at least:
✔ $30,000 for bodily injury per person
✔ $60,000 for bodily injury per accident
✔ $25,000 for property damage per accident
✔ Uninsured/Underinsured Motorist Coverage (UM/UIM): Same as liability minimums
Why Minimum Coverage May Not Be Enough:
- Medical expenses after a severe accident can exceed $30,000 per person.
- Vehicle repairs in North Carolina often cost more than $25,000, especially for newer models.
- Uninsured drivers make up around 9% of North Carolina motorists, making UM/UIM coverage crucial.
Recommended Full Coverage for Better Protection
For added security, most drivers opt for full coverage, which includes:
| Coverage Type | What It Covers | Recommended For |
|---|---|---|
| Collision Coverage | Pays for damage to your car in an accident | Drivers with new or financed vehicles |
| Comprehensive Coverage | Covers theft, vandalism, and weather damage | Essential due to NC’s storm risk |
| Uninsured/Underinsured Motorist (UM/UIM) | Covers injuries from uninsured drivers | Important since some NC drivers lack insurance |
| Medical Payments Coverage (MedPay) | Covers medical expenses regardless of fault | Beneficial for drivers without health insurance |
Average Cost of Car Insurance in North Carolina
Car insurance rates in North Carolina vary based on location, driving history, and vehicle type. Below is an average cost breakdown:
North Carolina Car Insurance Cost by Coverage Type
| Coverage Type | Average Annual Cost |
|---|---|
| Minimum Liability | $597 |
| Full Coverage | $1392 |
Car Insurance Costs by Major North Carolina Cities
| City | Minimum Coverage | Full Coverage |
|---|---|---|
| Charlotte | $850 | $1,900 |
| Raleigh | $780 | $1,750 |
| Greensboro | $750 | $1,700 |
| Durham | $770 | $1,750 |
| Winston-Salem | $720 | $1,650 |
| Fayetteville | $730 | $1,680 |
| Cary | $750 | $1,720 |
| Wilmington | $780 | $1,780 |
| Asheville | $700 | $1,620 |
| High Point | $720 | $1,670 |
Car Insurance Costs by Age Group
| Age Group | Minimum Coverage | Full Coverage |
|---|---|---|
| 16-19 Years | $3,800 – $5,800 | $6,500 – $8,500 |
| 20-24 Years | $1,900 – $2,800 | $3,800 – $5,200 |
| 25-34 Years | $1,200 – $1,900 | $2,800 – $3,800 |
| 35-44 Years | $1,000 – $1,700 | $2,500 – $3,500 |
| 45-54 Years | $950 – $1,500 | $2,300 – $3,200 |
| 55+ Years | $900 – $1,400 | $2,000 – $3,000 |
✔ Teen Drivers (16-19 Years): Pay the highest premiums due to inexperience and higher accident risks. Many insurers offer good student discounts to help lower costs.
✔ Young Adults (20-24 Years): Rates decrease as driving experience improves but remain higher than mid-age drivers.
✔ Mid-Age Drivers (25-49 Years): Experience the lowest insurance premiums due to lower accident risks and a longer driving history.
✔ Senior Drivers (70+ Years): Rates increase again as older drivers face higher accident risks due to slower reaction times and medical conditions.
Factors Affecting Car Insurance Rates in North Carolina
Several factors influence car insurance rates in North Carolina, including:
- Driving Record: Accidents, DUIs, and speeding tickets impact premiums significantly.
- Location: Urban areas like Charlotte and Raleigh have higher rates due to congestion and crime.
- Credit Score: North Carolina insurers consider credit history when calculating rates.
- Annual Mileage: More miles driven increases accident risk.
- Vehicle Type: High-performance and luxury cars cost more to insure.
- Weather Conditions: North Carolina’s hurricanes and flooding contribute to higher insurance claims.
- Coverage Level: Full coverage costs more but offers better protection.
Best Car Insurance Companies in North Carolina (2025)
| Company | Best For | Average Annual Cost (Full Coverage) |
|---|---|---|
| GEICO | Cheapest Rates | $1,300 |
| State Farm | Best for Customer Service | $1,400 |
| Progressive | Best for High-Risk Drivers | $1,550 |
| Allstate | Best Full Coverage Options | $1,650 |
| USAA (Military Families) | Lowest Rates for Military | $1,200 |
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FAQs
North Carolina law requires 30/60/25 liability coverage: $30,000 per person for injuries, $60,000 per accident, and $25,000 for property damage.
The average minimum coverage costs around $50 per month, while full coverage averages $116 per month.
Smaller cities like Asheville and High Point tend to have lower rates compared to Charlotte and Raleigh.
Yes, North Carolina requires uninsured motorist coverage at the same limits as liability insurance.
Yes, but high-risk drivers may face higher premiums. Taking defensive driving courses and shopping around can help lower costs.
About the Author
Alex Huber is a content writer for Atoz Insurances and he is a very experienced and well-rounded freelance content writer who specializes in the insurance and finance niches. His writing is engaging and informative, and he has a strong understanding of the industries he writes about.