Mark Vallet
Mark is a freelance journalist and analyst with over 15 years of experience covering the insurance industry.
Reviewed by John McCormick
John McCormick
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Expert insight from Chong Gao
Chong Gao
Director of product management R&D at Mercury Insurance.
Updated on : April 4, 2024Why you can trust Insure.com
At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry.
Erie Insurance is the best insurer in North Carolina, based on Insure.com research of state rates and third-party rankings. Erie Insurance received 4.17 out of 5 stars.
In North Carolina, the average premium for car insurance is $1,741 a year or $145 a month, which is the 33 rd highest in the country; Louisiana was number one.
For drivers looking for cheap car insurance in North Carolina, Erie Insurance, State Farm, Nationwide, Geico and others on our list are great options, offering plenty of coverage options at affordable rates.
Insure.com research found Erie Insurance offers low rates when compared to its competitors and received high marks when we look at other factors including J.D Power customer satisfaction scores, financial strength rankings and complaint data. Erie Insurance was Insure.com’s top scorer and was awarded 4.17 out of 5 stars.
State Farm finished second in our rankings with a score of 3.56 stars and Nationwide was third at 3.17 stars.
As noted, the rates above are for full coverage car insurance. Full coverage car insurance adds collision and comprehensive to your liability insurance coverage, so your vehicle is repaired or replaced after an incident.
Full coverage insurance includes collision and comprehensive which will pay to repair your vehicle. Collision covers damage caused by a collision with another vehicle or object while comprehensive repairs damage done by perils such as fire, theft, flooding, vandalism, and more.
Learn more about liability, collision and comprehensive coverage here.
Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.
“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”
But make sure you are comparing like coverage levels and deductibles.
“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age/income and profession, I would quote higher limits to protect their net worth and earnings potential.”
Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.
Statistics show that young drivers, because they are inexperienced and tend to take more risks, have more accidents and claims, all of which lead to higher premiums for younger drivers.
“Data indicates that teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”
Erie Insurance is the cheapest insurer in North Carolina for teens.
Age factors into a premium as the data clearly shows. Teens pay the highest rates by far with the lowest premium coming in at $2,240 which is 92% more expensive than the most affordable coverage for seniors at $1,165 and 79% more than young drivers’ best rate of $1,251.
Rates start to drop, assuming their driving record stays clean as teens move into their young adult years and tend to stay stable until a driver gets into their 70s when rates will go up a bit.
Seniors pay more for car insurance than other drivers, excluding teens. Erie Insurance is the best choice for seniors in North Carolina, according to our data, with an average premium of $1,165 annually, which translates to $97 a month.
State Farm was the second most affordable at $1,262 and Nationwide was next with a premium of $1,435.
“Seniors tend to have slower reaction times and may suffer from vision or hearing impairments, which can impair their driving ability. This makes them more prone to accidents and thus considered high-risk by insurance companies,” says Tariro Goronga, CEO of DriveSafe driving schools in Colorado.
| Company | Average annual premium | Average monthly premium |
|---|---|---|
| Erie Insurance | $1,165 | $97 |
| State Farm | $1,262 | $105 |
| Nationwide | $1,435 | $120 |
| Geico | $1,620 | $135 |
| Progressive | $2,028 | $169 |
| Farmers | $2,028 | $169 |
| Allstate | $2,647 | $221 |
Young drivers (21-25) have seen their premiums drop from their teen years, but they still pay more than more experienced drivers. In North Carolina, Erie Insurance is the cheapest option for young adults with a yearly premium of $1,251 or $104 a month.
Geico is the next most affordable with an average rate of $1,689 followed by State Farm at $1,860.
Young drivers, if they keep their driving record clean will see their rates drop even further as they move into their late 20s.
The table below shows the best insurers for young drivers in North Carolina:
| Company | Average annual premium | Average monthly premium |
|---|---|---|
| Erie Insurance | $1,251 | $104 |
| Geico | $1,689 | $141 |
| State Farm | $1,860 | $155 |
| Progressive | $2,028 | $169 |
| Farmers | $2,028 | $169 |
| Nationwide | $2,098 | $175 |
| Allstate | $4,053 | $338 |
Although teen drivers always pay much higher premiums than other driver groups, Erie Insurance offers teens the cheapest rate at $2,240. Teen drivers are inexperienced and are big risk takers which results in more accidents and claims, pushing up the cost of coverage.
“Teenagers are more likely to be involved in accidents than older drivers because of their lack of experience. This increased risk results in higher insurance rates because insurance companies regard them as high-risk drivers,” says Goronga. “Teenagers are also more likely to engage in risky driving behaviors, such as distracted driving or speeding, increasing their chances of being involved in an accident.”
State Farm has the second most affordable premium at $2,659 a year followed by Nationwide at $3,316 annually.
Our data clearly shows how dramatic premium differences can be for teens and how important shopping your coverage is when trying to find the best rate for your specific risk factors. While Erie Insurance was the most affordable at $2,240, Allstate was the most expensive with an annual premium of $6,888.
There are a few ways to save some money when insuring a teen. Ask your insurer for a good student discount if they are carrying a B average or better. Putting your teen in an older vehicle that you wouldn’t repair after an accident can help save some money by dropping collision and comprehensive.
The chart below shows average premiums for teens in North Carolina:
| Company | Average annual premium | Average monthly premium |
|---|---|---|
| Erie Insurance | $2,240 | $187 |
| State Farm | $2,659 | $222 |
| Nationwide | $3,316 | $276 |
| Progressive | $3,963 | $330 |
| Farmers | $3,963 | $330 |
| Geico | $4,641 | $387 |
| Allstate | $6,888 | $574 |
North Carolina is the 33 rd most expensive state (Louisiana is number one) when it comes to car insurance with an average premium of $1,741.
The table below shows the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.
| Average annual premium | Average monthly premium |
|---|---|
| $1,741 | $145 |
Insurers consider the ZIP code where your car is parked when setting a premium. High crime rates or frequent severe weather will result in a higher premium.
According to our analysis, the following ZIP codes are the most expensive in North Carolina for car insurance. Newell tops the charts at $2,136 a year.
Here are the most expensive ZIP codes in North Carolina for car insurance:
| City | Average annual Premium |
|---|---|
| Newell | $2,136 |
| Dublin | $2,119 |
| Tar Heel | $2,094 |
| Bladenboro | $2,094 |
| Elizabethtown | $2,091 |
| Mc Farlan | $2,036 |
| Wise | $2,014 |
| Ridgeway | $2,014 |
| Vaughan | $2,012 |
| Blanch | $2,008 |
Rural areas are almost always cheaper than urban areas when it comes to car insurance. Fewer people and cars on the road mean fewer accidents and claims. The cheapest zip code for car insurance in North Carolina is in Lake Junaluska with an annual premium of $1,477.
| City | Average annual Premium |
|---|---|
| Lake Junaluska | $1,477 |
| Marble | $1,488 |
| Marshall | $1,489 |
| Cherokee | $1,490 |
| Highlands | $1,494 |
| Tuckasegee | $1,494 |
| Robbinsville | $1,497 |
| Franklin | $1,498 |
| Hayesville | $1,499 |
| Otto | $1,499 |
Drivers with a speeding ticket, DUI or at-fault accident on their record are often considered high-risk drivers and end up paying more for coverage. The increase can range from reasonable for a speeding ticket to a big leap in costs for a DUI.
The data showed that a speeding ticket will result in a 58% increase, pushing the average rate to $2,211. Speeding tickets will typically impact your premium for at least three years.
An at-fault accident will raise your rates by 78% to an average of $2,484. A DUI will result in the biggest increase, sending your premium up 315% to an average of $5,799.
The table below shows the average increase for drivers with an incident on their record:
| Profile Groups | Average annual premium | Rates after Incident | Rates increase after incident ($) | Rates increase after incident (%) |
|---|---|---|---|---|
| At-Fault Accident | $1,396 | $2,484 | $1,087 | 78% |
| Bad Credit | $1,396 | $2,069 | $673 | 48% |
| DUI | $1,396 | $5,799 | $4,402 | 315% |
| Speeding | $1,396 | $2,211 | $815 | 58% |
North Carolina law requires drivers to carry Null in personal injury protection (PIP) and a minimum of $25k in property damage liability (PDL), which helps pay for damage you do with your car to other people’s property.
“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates. North Carolina, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”
