North Carolina is one of the top ten states by population. This means there are many people on the road at any given time. According to the Federal Highway Administration, there were roughly 7.6 million licensed drivers in North Carolina in 2020. You’ll find many of these drivers in the large Charlotte metro area, as well as Raleigh, the state’s capital city.
Just like nearly every other state, North Carolina requires motorists to buy car insurance. On this page, you’ll find the minimum requirements for the state, important laws you should think about, and the best companies. We’ll also give you a good idea of how much, on average, people in the Tar Heel State pay for their premiums.
Table of contents
Average North Carolina Auto Insurance Rates
Looking at average car insurance rates in your state can be a good strategy when you’re shopping for a new policy. This is because it can tell you how much you should pay, relative to what others in your state pay for auto coverage. However, remember that you can end up paying more or less than the average. Certain details about you can affect your rates, like your:
- Driving experience
- Marital status
- Driving record
- Claims history
- Zip code
Luckily, North Carolinians pay less for car insurance than the rest of the country, on average. The table below shows average rates in North Carolina compared to the national average:
|Coverage||North Carolina Average||US Average|
|Price Per Month||$61.81||$89.20|
So, why does North Carolina pay less for auto insurance than the nation’s average? It’s likely because the state is largely rural, except for some major urban centers, such as Charlotte. In general, people pay lower premiums in rural areas than in big cities or metropolitan areas. This is because there are often fewer cars all in one place, leading to fewer accidents and fewer claims.
The North Carolina Office of State Budget and Management (OSBM) revealed that, while the state has become increasingly urban in the last few decades, much of the state is still rural. They provide data from 2019 showing that more than 80% of the people in the state lived in rural unincorporated areas. This can help keep premiums down throughout the state, even if there are some densely populated cities.
North Carolina Auto Insurance Rates Increase
Despite enjoying low premium costs, North Carolina residents will see their car insurance rates going up in 2022. An article by WFMY News 2 out of Greensboro reports that the Insurance Commissioner allowed an average rate increase of 7.9% to take effect in June 2022.
Average Full Coverage Rates
The following graph shows the change in average North Carolina car insurance rates from 2012 to 2019. Rates for full coverage rose from $611 in 2012 to $741 in 2019. This was an increase of $130 or 21%. The gradual rise in rates could be due to inflation across the country. It’s not uncommon for insurers to raise rates every couple of years to meet the markets.
Average Liability Coverage Rates
The graph below shows the change in average North Carolina liability coverage costs from 2012 to 2019. Liability rates increased from $356 in 2012 to $392 in 2019. This was an increase of $36 or 10%. Over the eight years, North Carolina’s liability insurance rates have stayed much lower than the US average.
One reason liability rates are lower here is because of the slightly lower-than-average standard of living. This means that people here make less than those in other states. States with a lower standard of living often have lower costs in general. That’s because people can’t afford to pay more. It also means auto repair and medical treatment costs less.
Average Collision Coverage Rates
The next graph shows the average North Carolina collision coverage costs from 2012 to 2019. Collision rates increased from $248 in 2012 to $344 in 2019. This was an increase of $96 or 38%. Collision insurance rates are below the national average, but they’re closer to it than liability rates. This could be due to the state’s high average car repair costs. In a study done by CarMD in 2019, North Carolina ranked number seven for car repair costs. More expensive collision claims can cause insurers to raise rates.
Average Comprehensive Coverage Rates
The chart below shows the average North Carolina comprehensive coverage costs from 2012 to 2019. Comprehensive rates increased from $115 in 2012 to $138 in 2019. This was an increase of $23 or 20%. Like collision coverage, comprehensive rates are below the country average, but still closer than liability. Comprehensive insurance prices reached a peak in 2016 at nearly $150 and have gone down since, increasing slightly in 2018 before going down again in 2019.
North Carolina Minimum Auto Insurance Requirements
You must have the minimum amount car of insurance if you want to drive in North Carolina. Here are the required types of coverage and their minimum limits:
North Carolina requires minimum liability coverage limits of at least:
- $30,000 of bodily injury liability (BIL) per person
- $60,000 of bodily injury liability (BIL) for two or more people
- $25,000 of property damage liability (PDL) per accident
You will sometimes see liability requirements written in shorthand form on your policy or government websites as “30/60/25.”
These are just the most basic limits required by state law. However, just having the minimum may not be enough to cover every accident or situation. Some car wrecks can result in expensive injury or property damage. Unexpected events like natural disasters or theft can also cause damage to your car. For this reason, it’s smart to buy as much car insurance as you can afford. Higher limits or extra coverage, like collision or comprehensive, could help you avoid expensive repairs.
Find the Best Car Insurance in North Carolina
Compare quotes among leading car insurance companies to get better coverage and lower rates.
Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage
North Carolina also requires drivers to buy uninsured motorist (UM) and underinsured motorist (UIM) coverage. This protects you if you’re in a car accident with someone who either has no insurance or doesn’t have enough. According to the III, about 7.4% of NC drivers don’t have insurance.
Below are the minimum UM/UIM requirements:
- $30,000 of bodily injury liability (BIL) per person and $60,000 per accident
- $25,000 of property damage liability (PDL)
Valid Proof of Insurance
You must carry proof of insurance to drive in North Carolina. You must also send any documents showing valid proof of car insurance to the NCDMV. The following are ways you can prove that you have coverage:
- An insurance policy or ID card showing the issue date and effective date of the policy
- A certificate of insurance (FS-1) that shows your vehicle’s make, model, year, and VIN
- DL-23 form
Exceptions to the Minimum Auto Insurance
There may be some cases where you don’t want to buy a policy from a standard insurer. In these situations, you’d need to prove to the state that you have enough money to cover the costs of an accident if one occurs. This is often known as proving financial responsibility (FR).
You can prove financial responsibility in North Carolina by showing the state that you have at least $85,000 to spare for an emergency. This can come in the form of:
- Surety bonds
- Security deposits
- Real estate bonds
- Self-insurance (you must own 26 or more vehicles to do this)
Penalties for Driving Without Insurance
It’s illegal to drive without car insurance in North Carolina. If you’re caught doing it, you’ll face expensive fines, and you could have a hard time buying auto coverage in the future. You also risk losing your driver’s license.
State law requires you to have auto insurance if you want to drive a vehicle. You must surrender your license plate if you wish to cancel your coverage and not renew with another company. If you go a period without a policy, but still plan to drive, you’ll have a lapse in coverage. The NCDMV requires that providers inform them if they cancel your policy. The DMV will also notify you, and you’ll have ten days to respond. You must pay the following fines if you don’t respond:
- $50 if it’s your first insurance lapse
- $100 if it’s your second lapse
Auto insurance carriers will raise your rates if you go a period without coverage. This is because it makes you look like a risky driver.
Best Car Insurance Companies in North Carolina
Before buying car insurance, it’s smart to take a look at the best companies in your state. But what makes up the top companies? Normally, these are the insurers that give you great value for your hard-earned money. They provide:
- Excellent customer service
- An easy claims process
- A wide range of discounts you can qualify for
- Great rates
One smart way to find the right company is by comparing insurers side by side. For example, you can compare quotes between well-known providers. This could help you find a good deal and, potentially, the best value. You can also look at things like market share, customer satisfaction, and customer benefits. Our article on the best car insurance companies ranks each one based on these factors.
Top Companies by Market Share
As mentioned, it’s good to look at how much market share each insurance company has. While this may not necessarily tell you how cheap a company is, it can tell you which insurer people prefer working with. Chances are, if a company has a lot of customers, it’s because they’re doing something right.
Below is a list from 2020 of the top ten car insurance companies by market share in North Carolina:
|Rank||Company||Direct Premiums Written||Market Share|
|2||North Carolina Farm Bureau||$666,481,539||10.0%|
Top Companies by J.D. Power Rating
Another great way to find the top companies in your area is with J.D. Power’s customer satisfaction ratings. Every year, J.D. Power releases a list of the best auto insurance companies in specific regions. Checking it out can show you what other people think about different providers.
Below were the top car insurance companies in the Southeast in 2021 by J.D. Power rating (note: USAA didn’t fit the criteria of the study and isn’t on this list):
|Rank||Company||Customer Satisfaction Score (Out of 1,000)|
|1||Farm Bureau Insurance – Tennessee||883|
|3||Kentucky Farm Bureau||866|
|9||North Carolina Farm Bureau||836|
Best Companies Based in North Carolina
There are several insurance companies based locally in North Carolina. Working with a state-based company could be good for those who want to support local businesses. You may also get unique benefits that you can’t find with the more mainstream insurers. Here are the state’s top insurers (in no order):
- North Carolina Farm Bureau
- National General
- The Members Insurance Company
North Carolina Auto Insurance Laws
North Carolina, like other states, has unique laws and requirements. Below are some of the most important car insurance laws to pay attention to in North Carolina:
No-Fault or Fault?
No-fault states require you to buy insurance that’ll cover you regardless of fault in a car accident. This type of coverage is typically personal injury protection (PIP). PIP covers injury and medical costs for you and your passengers after an accident.
North Carolina is not a no-fault car insurance state. Rather, it’s a fault state. This means that you’re responsible for covering the costs of other drivers or passengers if you cause an incident.
Though the state doesn’t require PIP, it might still be a good idea to add it to your policy if you can afford it. Accidents happen, and it’s nice to know you have coverage for costly medical bills in all cases.
Your car is declared a total loss if it’s taken so much damage, that the cost to repair it would cost more than it’s worth. In many states, your car’s repairs must cost at least some percentage of its actual cash value (ACV) before insurers can declare it a total loss.
In North Carolina, your insurance company can total your car if its repairs match or exceed 75% of its ACV. If this happens, your insurer should give you a payout equal to your car’s ACV before the accident occurred.
Salvage and Rebuilt Titles
A salvage title car is a vehicle that an insurance company has deemed a total loss. You might also hear them called branded titles. This is because salvaged vehicles must carry a brand showing the reason it was totaled.
Salvage motor vehicles are illegal to drive on public roads and highways in North Carolina. And, because of their damage, most car insurance companies also won’t insure vehicles with salvage titles. This essentially renders a salvage useless unless you want to use it for parts or sell it. To take your salvage car out on the roads again, you must repair and “rebuild” it so it’s safe to drive. Once you do that, you can get it a rebuilt title.
How to Get a Rebuilt Salvage Title in North Carolina
Below are the steps to convert your salvage title to a rebuilt title:
- Repair your vehicle completely
- Send your driver’s license to the NCDMV
- Be ready to provide receipts for every part you used to repair your car
- Undergo a thorough safety inspection for a fee of $13.60
- Undergo a routine emissions inspection for a fee of $30.00
- Fill out a title application form (MVR-1) and send it to the NCDMV
- Fill out an odometer disclosure statement (MVR-180) and send it to the NCDMV (not applicable if your car is more than ten years old)
Insuring Cars with Rebuilt Titles
Once you’ve repaired a salvage car and obtained a rebuilt title, it must be insured. Luckily, you should have no difficulty getting rebuilt title insurance. Most major North Carolina insurers provide this coverage. But many won’t offer full coverage options like collision or comprehensive. You often can only get the state’s minimum required liability insurance. But that’s enough since that’s what you need to legally drive your rebuilt car.
Insuring a car with a rebuilt salvage title car tends to be more expensive than insuring one with a clean title. This is because rebuilt cars used to carry a salvage brand. And these are normally more risky or costly to repair. Each provider varies, however. So, it’s a good idea to double-check with your insurer on what kinds of insurance are available to rebuilt vehicles and at what cost.
Full Windshield Replacement
Some states, such as Florida, require insurers to replace your windshield without a deductible by offering full glass coverage. North Carolina doesn’t have any such laws. Instead, your comprehensive coverage will step in to repair windshield damage. In this case, you’ll have to pay a deductible of a varying amount depending on your carrier and how high you set it.
You’ll likely need to file a claim with your auto insurance company after an accident. Most providers make filing a claim easy on customers. You can usually do it over the phone and many allow you to file online.
How Long Does It Take to Settle a Claim?
Once you file a claim in North Carolina, you can expect an adjuster to figure out who or what was at fault in the accident. They’ll also assess the damages to your car. Then, by law, your insurance company has 30 days to tell you whether they’ll accept or deny your claim.
Your insurer must send you payment within ten business days if they accept your claim. If they don’t approve your claim, they must clearly explain why per state law or the specifics of your policy.
Providers use many factors when they’re deciding your premiums. This can include things like the type of car you drive or your driving experience. Another common rate factor that companies look at is your credit score. They believe that this can reveal something about your reliability as a customer or overall risk as a driver.
Some states, like California, have banned the practice of using your credit history to determine how much you pay for insurance. North Carolina, however, allows insurers to use your credit or FICO score to raise or lower your rates. Companies may also use it to cancel or deny you coverage if they give you written notice, but it can’t be the only reason for doing so.
Policy Cancellation and Non-Renewal
- 15 days if cancellation is for failure to pay your rates
- 60 days if cancellation is for any other valid reason
- 10 days for any coverage other than liability, medical payments (MedPay), and UM/UIM
Insurers must also give you at least 60 days of written notice if they wish to non-renew your policy for liability, MedPay, and UM/UIM coverages. With any other coverage, they only need to give you notice ten days before your policy period ends.
Keep in mind that if you don’t pay your rates, it’s still possible to keep your policy. You’ll need to contact your insurer and request a reinstatement. This requires you to pay your rates as soon as you can. If you don’t, you’ll have a lapse, making it extremely difficult to get coverage.
Safe Driver Discounts Not Approved
Many of the most well-known car insurance companies offer safe driver discounts and programs aimed at safe drivers. These often allow you to use an app or telematics device to track your driving habits such as braking, speed, and more. Then, you’ll receive a discount if you can drive safely consistently.
However, some states don’t approve of every company’s program. For instance, not all of the major insurers’ programs are eligible in North Carolina. A 2022 article from the Asheville Citizen-Times reports that programs such as Progressive’s Snapshot and Liberty Mutual’s Right Track aren’t approved in North Carolina.
North Carolina Drunk Driving Laws
Driving under the influence of drugs and alcohol is always a bad idea. It can put yourself and others in harm and can land you in some serious legal trouble. A driving while impaired (DWI) conviction will lead to expensive fines and jail time. You can get a DWI if you get caught driving with a blood alcohol content (BAC) of 0.08.
A DWI will also make it extremely difficult to buy insurance. With the new label of a high-risk driver, your current insurer is likely to cancel or not renew your policy. Other companies may also deny you coverage. Because of this, you typically must find a non-standard insurance company to insure you or enroll in a state-assigned risk pool. Note that policies from non-standard companies or state programs are normally much more expensive than coverage from standard providers.
North Carolina Drunk Driving Penalties
There are five levels of penalties for a DWI in the State of North Carolina, with level I being the most severe. Below is a breakdown of the penalties for getting a DWI conviction:
- Fine of $200
- 24 hours in jail, with a maximum sentence of 60 days
- If a judge suspends the sentence, the offender must spend 24 hours in jail, do a total of 24 hours of community service, or not drive any vehicle for 30 days
- Fine of $500
- 48 hours in jail, with a maximum sentence of 120 days
- If a judge suspends the sentence, the offender must spend 48 hours in jail, do a total of 48 hours of community service, or not drive any vehicle for 60 days
- Fine of $1,000
- 72 hours in jail, with a maximum sentence of six months
- If a judge suspends the sentence, the offender must spend 72 hours in jail, do a total of 72 hours of community service, or not drive any vehicle for 90 days
- Fine of $2,000
- Seven days in jail, with a maximum sentence of one year
- Fine of $4,000
- 30 days in jail, with a maximum sentence of two years
- If a judge suspends the sentence, the offender must spend 24 hours in jail, do a total of 24 hours of community service, or not drive any vehicle for 30 days
According to the state Department of Public Safety, your driver’s license will be suspended for one year after your first DWI offense. After that, you’ll lose your license for four years if you get a second DWI violation within three years of your first one.
Do I Need an SR-22 After a DWI in North Carolina?
North Carolina doesn’t require drivers to maintain an SR-22 after a DWI. An SR-22 is a form often required by certain states after a DUI/DWI traffic violation. It certifies that you have your state’s minimum required amount of auto insurance.
North Carolina Driver’s License Points System
North Carolina uses a driver’s license points system to keep track of moving violations. Each violation gives you a certain number of points on your driving record. If you get too many, you could have your license suspended.
You’ll lose your license if you collect 12 points on your record within three years. You’ll face another suspension if you rack up eight points in the three years after you get your license back. Your first license suspension will be for a length of 60 days, your second will be for six months, and any further ones will be for one year.
Most Popular Cars in North Carolina
These were the Old North State’s most-sold cars in 2021. The most popular cars in the state are the most sought after by customers and, at times, thieves. Your insurer could raise your rates if you own one of these vehicles.
- Ford F-Series
- Chevrolet Silverado
- Honda CR-V
- Ram 1500/2500/3500
- Toyota RAV4
Most Stolen Cars in North Carolina
The type of car you drive is one of many factors that companies look at when they decide your rates. Owning one of the most stolen cars in the state could make you look at risk to file insurance claims for vandalism or theft. Because of this, you could see a bump in your rates. These were the most stolen vehicles in 2021:
- 1997 Honda Accord
- 2006 Ford Pick-Up (Full Size)
- 2020 Chevrolet Pick-Up (Full Size)
- 1998 Honda Civic
- 2019 Toyota Camry
- 2020/2015 Nissan Altima
- 2020 Toyota Corolla
- 2019 Jeep Cherokee/Grand Cherokee
- 2019 Nissan Sentra
- 2020 Chevrolet Malibu