North Carolina car insurance

North Carolina car insurance costs an average of $50 per month for minimum coverage and $146 per month for full coverage.

Your actual rate can vary based on factors like your coverage needs, age, driving history, vehicle, and years of driving experience. Comparing quotes regularly and keeping a clean record is the best way to save on North Carolina auto insurance.

The average cost of car insurance in North Carolina in 2026 is $50 per month for minimum coverage and $146 per month for full coverage. That equals average annual premiums of $595 and $1,754, respectively.

North Carolina requires drivers to carry a minimum of 50/100/50 liability coverage and uninsured/underinsured motorist coverage.¹ 

Liability insurance covers injuries and property damage you cause to others in an accident. Uninsured/underinsured motorist coverage (UM/UIM) helps pay for your injuries and vehicle damage if the at-fault driver doesn’t have enough liability coverage or is driving uninsured. 

What changed for North Carolina car insurance in July 2025?

North Carolina increased its minimum liability limit in 2025 from 30/60/25 to 50/100/50.³ The state also changed its underinsured motorist (UIM) coverage requirements and made several changes that can affect how insurers calculate premiums.

North Carolina UIM coverage requirements and how it works

Insurers must now include UIM coverage in auto insurance policies, not just UM coverage. The new law also: 

• Requires insurers to use the injured person’s total injury expenses, not just the at-fault driver’s liability limits.This change allows the injured party to collect for their total damages, up to their UIM limits. 

• Eliminates the setoff or credit rule, which used to reduce how much you could recover under UIM by other coverages. For example, if you have medical payments (MedPay) coverage of $10,000 on your policy and used $5,000 to cover your medical expenses, it would reduce your possible UIM payout by $5,000. 

• Stacking UIM across multiple policies. So if you have two auto policies, each with $50,000 UIM coverage, you can potentially claim up to $100,000 in UIM coverage for medical bills from injuries sustained by an underinsured motorist.

North Carolina extended insurance surcharge and lookback periods

Some drivers may also see their rates change based on new surcharges and lookback period increases: 

• Longer inexperienced driver surcharge. New drivers with fewer than three years of driving experience can now receive an inexperienced operator surcharge for eight years. 

• Longer surcharge period. Drivers who receive four or more points under the Safe Driver Incentive Plan (SDIP) can now receive a surcharge for five years instead of three.

• Longer lookback period for certain violations. The lookback period for drivers convicted of speeding 10 mph or less, or who receive a Prayer for Judgment Continued (PJC) ruling for a moving violation, is now extended from three to five years. That means insurers can use the last five years of your driving record to price new or renewal policies. 

Is North Carolina a no-fault or at-fault state?

North Carolina is an at-fault state, meaning the driver responsible for an accident generally pays for the damage they cause.

If you’re found even partially responsible for an accident, North Carolina’s contributory negligence law could prevent you from collecting anything against the other person’s liability insurance, even if they’re also partially responsible. Disputes over fault can ultimately require a court to decide.⁴

The following table shows the cheapest car insurance companies in North Carolina for the average driver. Your cheapest option may differ because insurers evaluate drivers differently, and rates depend on your individual profile.

Your driving record, age, vehicle, coverage, driving experience, ZIP code, and other characteristics can affect what you pay for car insurance in North Carolina. Here are some of the factors:

• Driving record: Tickets, at-fault accidents, and serious violations like DUIs can raise your premium.

• Age: Younger drivers cause more accidents than other age groups, which usually leads to higher rates.

• Vehicle: Your car’s value, repair costs, safety features, and theft risk can affect its insurance cost.

• Coverage choices: Higher liability limits and optional coverages typically cost more.

• Deductibles: A higher deductible can reduce your premium, but you’ll pay more out of pocket after a covered claim.

• Driving experience: How long you’ve been driving can affect your rate in North Carolina.

• Credit: Insurers in North Carolina can use your credit history as a rating factor. North Carolina drivers with good credit pay $146 per month on average, while drivers with poor credit pay $258 on average.

How do violations affect North Carolina car insurance rates?

Driving violations can make North Carolina car insurance substantially more expensive. The state created the Safe Driver Incentive Plan (SDIP) to financially incentivize drivers to practice safe driving habits.⁵

According to Luva’s research, more than one in four car insurance shoppers reports at least one violation on their driving record.⁶

Have a violation on your record? Compare car insurance quotes with Luva to see how much you could save.

How does location affect North Carolina car insurance rates?

Insurers consider local accident rates, population density, vehicle theft, repair costs, and other factors based on your ZIP code.

A standard state-minimum car insurance policy doesn’t cover damage to your vehicle from hurricanes, flooding, or other events. Coastal North Carolinians should consider adding comprehensive coverage, also called “Other Than Collision” coverage, which covers hurricane and flood damage.⁷

A full coverage policy typically includes liability, comprehensive, and collision coverage. In North Carolina, it’ll also include UM/UIM coverage. 

Comprehensive and collision protect your vehicle from different types of damage:

You can choose to add just comprehensive coverage, just collision, or both. If you finance or lease your vehicle, your lender usually requires both. 

If you file a collision or comprehensive claim, you’ll generally pay the deductible amount out of pocket, and your insurer will cover the remaining eligible damage. Consider how much you can afford to pay if a hurricane or flood damages your vehicle. 

Choosing higher deductibles can lower your premium. According to the Insurance Information Institute (III), you could save up to 30% on comprehensive and collision coverage by raising your deductible from $200 to $500.⁸

If you live near the coast, review your policy before hurricane season. Don’t assume your policy will automatically protect your vehicle from storm damage.

Comprehensive coverage is generally affordable in North Carolina, costing around 13% less than the national average, according to the most recent data from the National Association of Insurance Commissioners (NAIC).⁹

North Carolina’s rates are already among the cheapest in the country, but that doesn’t mean you’re getting the best deal.¹⁰ Here are some ways you might be able to find even cheaper car insurance in North Carolina:

1. Compare several insurers. Pricing can vary for the same driver and coverages. Comparing quotes from multiple companies can help you find the lowest rate for your coverage needs.

2. Match your coverage. Compare quotes using the same coverage types, liability limits, deductibles, and optional coverages so you’re getting a true price comparison.

3. Check for discounts. Ask your insurer which discounts are available to ensure you’re getting all the savings you qualify for. Discounts vary by company, but may include savings for safe driving, multiple policies and vehicles, going paperless, paying in full, and having good grades.

4. Keep your driving record clean. North Carolina penalizes at-fault accidents and violations heavily.

5. Review your policy at each renewal. Your coverage needs may change based on your vehicle, household, or mileage, which can affect what you should carry and your premiums.

Luva can help simplify the comparison process by showing rates from multiple companies side by side. Worried about possible coverage gaps? Chat with Lu, your personal insurance guide, to make sure your policy meets your needs.