North Carolina drivers pay less than the national average rate for car insurance, according to Reviews.com. We analyzed the largest car insurance companies by market share in the Tar Heel State and considered affordability, customer support, coverage options, customer satisfaction scores, and online resources to determine which companies to feature. Some of the companies that stand out in North Carolina are also included in our national list of the best car insurance providers.
The 4 Best Auto Insurance Companies in North Carolina
Based on our analysis of average annual premiums obtained from Bankrate.com, coverage options, discounts, and third-party scores, we choose the following four companies as among the best in the state:
- Geico: Best for Low Rates
- Erie: Best for Customer Satisfaction
- North Carolina Farm Bureau: Best for Local Service
- Progressive: Best for Discounts
Compare the Top Car Insurance Companies in North Carolina
Based on our investigation, we chose Geico, Erie, North Carolina Farm Bureau, and Progressive as some of the best carriers in North Carolina. However, the best company for you will depend on your unique wants, needs, and circumstances.
| AVERAGE ANNUAL PREMIUM FOR MINIMUM COVERAGE* | AVERAGE ANNUAL PREMIUM FOR FULL COVERAGE* | AM BEST FINANCIAL STRENGTH RATING AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. POWER OVERALL CUSTOMER SATISFACTION** (Southeast region) J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin Geico | $260 | $835 | A++ | 843 | |
| Pin ERIE | $365 | $1,125 | A+ | 874 | |
| Pin North Carolina Farm Bureau | $374 | $1,107 | A | 836 | |
| Pin Progressive | $527 | $1,630 | A+ | 828 |
Information accurate as of January 2022
*Data provided by Bankrate.com
**J.D. Power 2021 Auto Insurance Satisfaction Study rating for the Southeast region. Based on a 1,000-point scale.
Best for Low Rates
WHY WE CHOSE IT
Why we chose it
Pros
- Low average annual premiums
- Numerous discounts available
- Robust mobile app
Cons
- No gap coverage
- Few endorsements available
- Few local agents
OTHER POLICIES OFFERED
- Homeowners
- Renters
- Motorcycle/ATV
- Boat
STANDOUT DISCOUNTS AVAILABLE
- Emergency deployment
- Federal employee
- Membership & employee
- Military
Best for Customer Satisfaction
WHY WE CHOSE IT
Why we chose it
Pros
- Highly-rated customer satisfaction
- Erie Rate Lock may help keep premiums steady
- Diminishing deductible option
Cons
- Limited online capabilities
- Student discounts offered are unavailable in the state
- Fewer online and mobile tools than some other carriers
OTHER POLICIES OFFERED
- Collector and classic car
- Homeowners
- Flood
- Business
STANDOUT DISCOUNTS AVAILABLE
- Reduced usage
- Safe driving
- Annual payment plan
Best for Local Service
WHY WE CHOSE IT
Why we chose it
Pros
- Local agents available
- Average premiums are lower than the state average
- Online claims filing
Cons
- Website functionality is limited
- Lowest financial strength rating on our list
- Only available to Farm Bureau members
OTHER POLICIES OFFERED
- Homeowners
- Renters
- Farm
- Life
STANDOUT DISCOUNTS AVAILABLE
- Not listed on website
Best for Discounts
WHY WE CHOSE IT
Why we chose it
Pros
- Numerous discounts available
- Highly-rated digital tools
- Coverage for high-risk drivers may be available
Cons
- Average premiums are higher than the state average
- Lowest J.D. Power score on our list
- Higher-than-average NAIC complaint index
OTHER POLICIES OFFERED
- Condo
- Snowmobile
- Segue
- Golf cart
STANDOUT DISCOUNTS AVAILABLE
- Continuous insurance
- Snapshot
- PerkShare discounts
- Sign online
* Data provided by Bankrate.com.
** J.D. Power 2021 Auto Insurance Satisfaction Study rating for the Southeast region. Based on a 1,000-point scale.
The Average Cost of Car Insurance in North Carolina
According to 2021 data from Bankrate.com, the average cost of car insurance in North Carolina is $413 per year for minimum coverage and $1,325 per year for full coverage. For comparison, the national average costs are $565 per year for minimum coverage and $1,674 per year for full coverage. While the price was considered in choosing our top companies, we also analyzed coverage options, discounts, policy features, and third-party scores.
Top 3 Cheapest Car Insurance Companies in North Carolina
| Company | Average Annual Full Coverage Premium* |
| Geico | $835 |
| State Farm | $958 |
| North Carolina Farm Bureau | $1,107 |
* Data provided by Bankrate.com
Top 3 Most Expensive Car Insurance Companies in North Carolina
| Company | Average Annual Full Coverage Premium* |
| Allstate | $1,633 |
| Progressive | $1,630 |
| Nationwide | $1,374 |
* Data provided by Bankrate.com
Top 3 Cheapest Cities for Car Insurance in North Carolina
| City | Average Annual Full Coverage Premium* |
| Weaverville | $1,130 |
| Alexander | $1,132 |
| Swannanoa | $1,133 |
* Data provided by Bankrate.com
Top 3 Most Expensive Cities for Car Insurance in North Carolina
| City | Average Annual Full Coverage Premium* |
| Evergreen | $1,572 |
| Tar Heel | $1,567 |
| Tabor City | $1,567 |
* Data provided by Bankrate.com
Key Things to Know About Car Insurance in North Carolina
North Carolina requires all drivers with a valid in-state registration to carry auto insurance from a company licensed in the state. Out-of-state policies don’t fulfill this requirement. Insurance companies must report canceled policies or coverage lapses to the state’s Division of Motor Vehicles, at which time a driver must provide proof of new insurance. Failure to carry the proper insurance can result in fees and revocation of vehicle license plates.
North Carolina Car Insurance Requirements
North Carolina law requires all drivers to carry both bodily injury and property damage liability insurance, as well as uninsured and underinsured motorist coverage.
The state minimum coverage in North Carolina is:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
- $30,000 uninsured motorist bodily injury per person
- $60,000 uninsured motorist bodily injury per accident
- $25,000 uninsured motorist property damage per accident
- $30,000 underinsured motorist bodily injury per person
- $60,000 underinsured motorist bodily injury per accident
To drive legally, you must have a policy with at least these limits. Most insurance agents recommend that you buy higher liability limits for more financial protection.
Car Insurance Coverage Options
In addition to the standard coverage offerings, there are a few optional coverages that you might want to consider adding to your policy:
- Roadside assistance: Roadside assistance is an optional coverage add-on that most companies offer. It provides on-demand service for tire changes, tow services, and more.
- Gap coverage: Many people have a loan or lease on their vehicle. Gap coverage may be available from some insurers for newer model vehicles and protects you in case you total your car and the amount left on the loan or lease exceeds what the car is worth.
- Rental reimbursement: This optional coverage pays for the cost of a rental car, up to your policy limits, when your vehicle is damaged in a covered accident.
- Accident forgiveness: Insurance premiums typically increase after an accident, but optional accident forgiveness coverage helps prevent your rate from increasing after your first accident.
Frequently Asked Questions
Methodology
Reviews.com reviews products, services and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company to determine top providers.
As for average pricing, we used Bankrate.com’s data of car insurance in North Carolina, based on the profiles of a 40-year male and female. For full coverage, the details used were the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week, and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
About the Authors
Cate Deventer is a writer and licensed insurance agent. She has a Bachelor’s degree in theatre and is currently pursuing a degree in English with a concentration in professional and technical writing from Indiana University East. Her work has been featured on Reviews.com and Bankrate.com, and she’s passionate about helping people take charge of their finances. In her free time, she likes to read thrillers and sci-fi novels, garden, and toss tennis balls for her dog.
