Average cost of car insurance in North Carolina for 2025

How much is car insurance in North Carolina? 

The average cost of car insurance in North Carolina is $1,957 annually for full coverage and $595 annually for state-required minimum coverage. North Carolina car insurance rates are typically well below the national average costs of car insurance, which are $2,678 per year for full coverage and $799 per year for minimum coverage. To break down how much car insurance is in North Carolina, Bankrate’s insurance editorial team, which includes licensed agents, turned to Quadrant Information Services and reviewed average rates for the largest companies in the state by market share.

Key takeaways

• The average cost of full coverage car insurance in North Carolina is $1,957 per year or $163 per month. Minimum coverage is $595 per year or $50 per month.
• On average, North Carolina drivers pay 27 percent less for full coverage car insurance compared to the national average.
• Of all age groups, 16-year-old drivers pay the most for car insurance in NC.
• On average, drivers convicted of a DUI in North Carolina pay 290 percent more for full coverage compared to the state average.

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North Carolina car insurance rates by city

Car insurance rates vary by state; they can also vary by city. This is why figuring out how much car insurance is in North Carolina requires more information than just your vehicle make and model. For example, Fayetteville and Charlotte’s average annual full coverage premiums are slightly higher than the state average. 

Larger cities tend to have higher insurance costs for a few reasons. Higher medical care costs may increase bodily injury liability payouts, and higher costs for vehicle repairs and labor may increase property damage liability, comprehensive coverage and collision coverage payouts. Additionally, larger cities tend to have more traffic, which could lead to a higher likelihood of accidents. In contrast, if you reside in a ZIP code with few vehicle thefts and accident claims, you may be able to take advantage of lower-than-average rates.

Average car insurance costs by age and gender in North Carolina

Car insurance rates vary by age in most states, including North Carolina, with younger drivers usually paying more for coverage due to a higher likelihood of accidents and subsequent claims. Recognizing and responding to sudden road hazards is a learned skill that takes time to develop, which is why teen drivers who lack driving experience typically face the highest insurance rates.

In most cases, young drivers can save money by staying on their parents’ policies as additional drivers for as long as possible. Premiums generally decrease with age but may begin to increase again when drivers reach their senior years. In some states, male drivers see higher average rates than female drivers, but North Carolina car insurance laws do not allow the use of gender as an insurance rating factor.

Cost considerations for young drivers in North Carolina

If a young driver is still living in their parents’ household, it’s usually cheaper to keep that driver listed on their parents’ policy. By staying on their parents’ policy, new drivers get the fiscal benefit of having more experienced drivers on the policy to keep the cost lower. You can see from the rates here that the newest drivers — those who are 16 and 17 years old — pay the highest average rates. Premiums may start to lower after just one year of driving experience, provided the young driver maintains a clean driving record.

How does driving record impact the cost of car insurance in North Carolina?

Car insurance rates in North Carolina by credit

North Carolina car insurance rates by vehicle type

Estimate your car insurance cost in North Carolina

Finding car insurance in NC that fits your needs and budget can be overwhelming. Getting an idea of what you might end up paying is a good place to start. Bankrate created the tool below to help drivers estimate their costs.

How to save on car insurance in North Carolina

Generally, North Carolina car insurance is cheaper than comparable coverage in many other states. However, there are still ways to potentially shave more money off your premium.

• Shop around: Each car insurance company calculates rates in a slightly different way, which is why your insurance premium can vary from company to company. In order to find the lowest possible premium, it may help to request quotes from several companies. Specify the same coverage types, policy limits and deductibles in order to do an apples-to-apples comparison.
• Bundle your policies: Bundling your auto and home insurance with the same company usually makes you eligible for a multi-policy discount. This is generally one of the most significant discounts you can get. Some companies offer a bundling discount for auto and renters, condo, mobile home or life insurance, if you don’t own a home, though the discount may be less.
• Maintain a clean driving record: Drivers with incidents like tickets, at-fault accidents and DUI convictions pay quite a bit more for car insurance coverage, on average. Practicing safe driving habits may help you avoid these costly surcharges. You could save even more by allowing your insurer to track your driving behaviors through a telematics program.
• Look for discounts: In addition to bundling, most car insurance companies offer at least a handful of discount opportunities. Some of the most common include multi-car, paperless billing and claims-free discounts.

Keep in mind that North Carolina prohibits many common discounts, though. One example is the good student discount. The state also doesn’t allow insurers to offer programs that have the potential to raise a policyholder’s premium (like some telematics programs).

To ensure you’re taking advantage of the discounts that are available, talk to your agent or a representative from your company.

Frequently asked questions