Average Cost of Car Insurance in North Carolina for 2025

How Are Car Insurance Costs Trending?

If it seems your North Carolina car insurance rates are rising, you're not alone. The cost of car insurance rates has risen nationwide in the past few years for a variety of reasons. Higher costs of vehicles, parts and repairs are one factor. Increasingly serious accidents leading to higher insurance claim payouts are another. In addition, severe weather events are growing more frequent, pushing insurers' costs (and rates) higher.

As the chart below shows, since March 2023, the average cost of full coverage car insurance in the U.S. has risen by 30.46%. While the jump isn't as pronounced, the cost of minimum coverage auto insurance has also increased, rising by 15.45% nationwide.

Average Annual Auto Insurance Premiums, 2023-2025

In North Carolina, your car insurance costs may soon rise further thanks to new requirements for minimum liability coverage. Starting July 1, 2025, North Carolina will require drivers to carry minimum bodily injury liability insurance of $50,000 per person and $100,000 per accident and minimum property damage liability coverage of $50,000 per accident. These are some of the highest minimums in the U.S., Insurance Journal reports.

Think you're paying too much for car insurance in North Carolina? Taking some time to compare auto insurance quotes from other insurance carriers might help you find the same coverage for less. Experian's free car insurance comparison tool offers an easy way to gather quotes from multiple top insurance carriers at once.

Average North Carolina Car Insurance Rates by City

Your location within North Carolina is another factor that affects how much you'll pay for auto insurance. Different parts of North Carolina may have different risks for drivers. Busy urban areas may have higher auto theft rates, for instance, or longer average commutes and heavier traffic. All of these conditions can make it more likely that you'll need to file a car insurance claim.

Medical care and automotive repairs also cost more in some North Carolina cities than others, which can impact your car insurance costs. As the chart below shows, the average cost of car insurance in some of North Carolina's most populous cities can vary widely depending on where you live.

Source: Experian data as of January 2025
Note: Top cities are ranked by those with highest policy count

Average North Carolina Car Insurance Rates by Age and Gender

Many states, including North Carolina, allow insurance companies to consider your gender when setting your car insurance premiums. Because women are statistically less likely to be involved in serious auto accidents or get DUIs, they may pay less for car insurance, according to the Insurance Information Institute. That's true in North Carolina, as the chart below shows.

Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies

North Carolina women on average pay only slightly less than men for car insurance. However, the difference between the genders is more pronounced when age is factored in. In general, younger drivers, particularly men, pay more than older drivers because their rate of car accidents is statistically higher.

Nationwide, as the chart below shows, men under age 20 pay significantly more for auto insurance than women of the same age. Regardless of your gender, however, your auto insurance rates typically drop as you get older. Once you reach your mid-70s, auto insurance premiums tend to rise again.

Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies

How Your Driving Record Impacts Your Insurance Costs in North Carolina

Practicing safe driving habits can help reduce your risk of getting a traffic citation or being involved in a car accident. This can pay off in lower insurance premiums for those with a "clean" driving record that shows no incidents or violations. On average, North Carolina drivers with clean records (no incidents or violations) pay $1,605 annually for auto insurance. However, just one moving violation in North Carolina can cause your auto insurance premiums to skyrocket to an average cost of $3,253 per year.

Should your driving record show a history of moving violations or accidents (even those where you weren't at fault), insurance companies may consider you a high-risk driver and increase your car insurance rates accordingly. The chart below shows how the number and severity of infractions could impact the cost of car insurance in North Carolina. Incidents include things like traffic accidents or insurance claims; violations include moving violations, such as speeding tickets.

Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies

Cheapest Car Insurance in North Carolina

Although things like your driving record, vehicle and location can play big roles in the price you pay for auto insurance, they aren't the only factors that can impact your premiums. The insurance company you choose also has a big effect on the cost of your car insurance. That's because each insurance carrier uses its own formula when determining auto insurance rates.

Shopping around and comparing quotes from a variety of insurance companies can help you find the most affordable auto insurance for your needs. The table below shows the cheapest full coverage auto insurance among the insurance carriers that sell the most policies in North Carolina.

Source: Experian data as of January 2025
Note: Costs above represent insurance quotes, not policy premiums

We can't know exactly how each insurance company sets its rates. However, factors such as the carrier's risk tolerance, projected operating costs, estimated claims payouts and profitability goals typically come into play. An insurance provider with higher overhead expenses might charge more than one with lower overhead expenses, for instance.

How to Save on Car Insurance in North Carolina

Your North Carolina car insurance premiums may be above average, below average or somewhere in between, but chances are they're still higher than you'd like. Here are some things you can do to save on car insurance.

Increase Your Deductible

The deductible is the amount of money you're responsible for paying out of pocket when you file an auto insurance claim. Most auto insurance companies let you choose a deductible that can range from $250 to $2,000. Increasing your deductible typically reduces your premiums because you're shouldering more of the financial risk of a claim.

Before raising your deductible, though, you should be confident you could afford the higher amount if you filed a claim. Calculate the state of your emergency fund and other financial resources, and ask your insurance carrier to show you how various deductibles would impact your premiums.

Look for Discounts

You may not be using all the discounts your current auto insurance provider has available; check with them to see. Then visit other insurance companies' websites to see what kinds of discounts they offer. Common ways to qualify for car insurance discounts include bundling home and auto insurance, paying your entire premium upfront, opting out of paper bills or setting up automatic payments.

You may even get discounts for getting insurance quotes online or signing documents online. A high school or college student could earn a discount for maintaining good grades or attending school more than 100 miles away without a car. You can also check to see if your job or any membership organizations you're a part of offer discounts on auto insurance.

Get Rid of Unnecessary Coverage

You can usually cut the cost of car insurance by trimming any coverage that's nice to have but not essential. Examples include rental car reimbursement, windshield replacement or roadside assistance coverage. Evaluate whether you really need the extra coverage or if there are cheaper alternatives. For instance, if you already have roadside assistance through an auto club, you don't need to buy a second assistance plan through your car insurance.

If you have a vehicle that's not worth very much, you could also think about dropping collision and comprehensive coverage. Collision and comprehensive insurance won't pay out more than the vehicle's value, so a car that's only worth a few thousand dollars may not be worth the expense of the premiums. However, it's important to make sure you could afford to replace or repair your vehicle if it were totaled.

Reduce Your Annual Mileage

Statistically speaking, the more you drive, the more likely you are to be involved in an accident at some point. That's why many car insurance providers offer low-mileage auto insurance discounts if you drive 12,000 or fewer miles annually. Finding ways to drive less could save you money. Figure out whether you can walk, take public transportation, carpool or work from home instead of driving.

Low-mileage auto insurance typically requires monitoring your mileage, either by self-reporting or using a third-party odometer reading or device installed in your car. You might also explore pay-per-mile car insurance, which charges a monthly base rate plus a per-mile charge for each additional mile.

Keep Your Driving Record Clean

Drivers without any citations or accidents on their driving records are considered lower risk for auto insurance companies, so they typically pay lower rates for car insurance. Practicing safe driving habits can help you avoid accidents or moving violations and maintain a clean driving record. North Carolina uses a point system to track a driver's traffic violations; however, you may be able to remove points from your record by completing an approved driver improvement course.

Improve Your Credit

North Carolina law allows insurance companies to use your credit-based insurance score when setting your car insurance premiums. If you have a poor score, you might end up paying higher rates for auto insurance. However, taking action to improve your consumer credit score could have a positive effect on your credit-based insurance score too—potentially saving you money on auto insurance.

Shop Around

It's easy to get complacent with your car insurance, but sticking with the status quo year after year could be costing you. Make it a habit to compare quotes from several different insurance carriers at least once a year. Who knows? You just might uncover a better rate for the same coverage.

You can get auto insurance quotes by visiting insurance providers' websites or by contacting insurance companies directly. For a more convenient way to explore your options, try using Experian's free car insurance comparison tool. Provide your information once to gather car insurance quotes from multiple top insurance companies in North Carolina. It's an easy way to see if there's a better deal available.