North Carolina Car Insurance

Everything You Need to Know About Auto Insurance in North Carolina

North Carolina is said to have earned its nickname as the “Tar Heel State” from its former days as the largest producer of substances such as tar, pitch, and turpentine. Today, you can take part in a variety of activities in this great state, like spending an exciting evening watching NASCAR and monster truck shows at the Charlotte Motor Speedway. The Rockingham Dragway (also known as “the Rock”) in the NC Sandhills is another great venue for NASCAR or street-legal drag races.

For outdoor lovers, visit the state’s 320 miles of shorelines from the Outer Banks to Bald Head Island, travel the Blue Ridge Parkway with over 252 miles of scenic landscapes, or take a day hike on the Appalachian Trail. If sports are your thing, stop by Pinehurst for fun on the greens — or catch a game with the NFL’s Carolina Panthers, the NBA’s Hornets, or the NHL’s Carolina Hurricanes. These are just a hint of all the state has to offer — it is no wonder that more than 11 million residents have chosen to live here.

Recent statistics show that just over 8 million of the state’s residents are licensed drivers. All those drivers mean a lot of cars on the roadways. Before you set out for your daily commute or another adventure, be sure you have the best auto insurance options in North Carolina. InsureOne’s expert agents can help you find high-quality policy choices that fit your specific situation.

How Much Does Car Insurance Cost in North Carolina?

Drivers can expect to pay an average yearly rate of $1,446 for full coverage car insurance in North Carolina and $432 for minimum liability coverage. The national average is $2,014 for a full coverage policy and $622 for the minimum liability coverage. That means you can expect to pay a yearly premium of around $568 less for full coverage and $190 less than the national average.

Weather such as tropical storms and hurricanes wreak havoc on the area, causing floods and increasing the risk of auto accidents — these events play a part in determining statewide rates. Other reasons for the cost of car coverage in North Carolina include increased auto repair costs and the 4.5% increase for 2025 rates negotiated by the NC Rate Bureau with the NC Department of Insurance.

What Does It Mean If North Carolina Is an At-Fault or No-Fault State?

North Carolina’s at-fault vs. no-fault rules follow a tort system, meaning it is an at-fault state. In other words, the driver found responsible for the accident is responsible for costs stemming from the crash — a good reason to have the best, high-quality coverage.

This is different from a no-fault state, where drivers are responsible for their own medical expenses and lost wages. Property damage in no-fault states, however, is usually the responsibility of the at-fault driver.

Affordable Car Insurance Rates Comparison by Cities in North Carolina

As you can see in the chart below, monthly costs are slightly higher or lower depending on where you live in the state:

City	Full Coverage Insurance	Liability Insurance Coverage
Chapel Hill	$96	$30
Charlotte	$113	$40
Elizabethtown	$135	$37
Fayetteville	$129	$44
Fort Bragg	$129	$43
Greensboro	$116	$38
Halifax	$125	$29

We arrive at our average auto insurance costs by using a male driver, aged 30, with a clean driving record. Liability insurance coverage is the state‑required minimum. Full coverage is a 100K/300K/100K policy. Your costs will be different and based on your individual factors.

Auto Insurance Discounts in North Carolina

If you want affordable North Carolina car insurance, your agent can help. While there is no state-sponsored auto insurance for low-income individuals in the state, most insurers offer savings in the form of discounts.

Here are some ways you may be able to save money on your car insurance premium:

• Approved defensive driving class
• No accidents
• Green vehicle
• Senior driver
• Good student
• Occupational discounts (for certain professions)

North Carolina Car Insurance Laws

State auto insurance laws for NC drivers require you to have car insurance. Insurers also apply a premium surcharge to drivers with less than eight years of driving experience (up from three years starting in July 2025). These surcharges decrease each year of those eight as the driver gains experience.

The state created the North Carolina Safe Driver Incentive Plan (SDIP), a financial incentive to practice safe driving. This program consists of different levels of insurance increases based on your driving events.

If you are convicted of speeding 10 miles per hour or less over the posted speed limit, the violation is waived for insurance purposes. This means your premium will not go up if you have no other moving traffic violations except for a prayer for judgment continued (PJC) during the five years (the “lookback period”) preceding your renewal date.

The PJC is like a “get out of jail free card” for non-jailable offenses — a judge can find you guilty of a violation, but without a traffic-offense judgment, so your rates will go unaffected. There are specific situations to which the PJC does not apply.

Many states require drivers to file an SR-22 under certain circumstances, such as:

• A DUI conviction
• Driving without insurance
• Serious car accident
• A suspended license

North Carolina DMV insurance requirements say that you only need SR-22 insurance in this state if you have moved here from another state where you had the requirement.

Also, the state’s insurance companies must notify the DMV when a driver’s insurance coverage lapses or is canceled. Be sure to ask your agent, “What are the car insurance laws in North Carolina?” for a more in-depth explanation.

What Are the Mandatory Car Insurance Requirements in North Carolina?

Drivers must maintain the minimum car insurance requirements in North Carolina, which are as follows:

• Bodily injury liability per person: $50,000
• Bodily injury liability per accident: $100,000
• Property damage liability: $50,000

As of July 1, 2025, the state also requires drivers to purchase the following, with limits matching the driver’s bodily injury and property damage liability limits:

• Uninsured/underinsured motorist coverage: $50,000

The state requires the driver’s uninsured/underinsured motorist coverage to match the limits of the driver’s liability insurance in North Carolina, so if those are higher, the UM/UIM will also be higher.

What Is the Penalty for Driving Without Insurance in North Carolina?

If a law enforcement officer catches you driving without auto insurance in North Carolina, you face:

• Fines and fees (up to $200)
• Driver’s license suspension
• Registration suspension
• Jail time

What Factors Does North Carolina Law Allow in Determining Your Premiums?

State insurers consider area statistics and personal factors when determining your premium. Your zip code and local auto theft and accident rates play an important role. Here are some other factors:

• Your accident record
• Your ticket history
• Your car’s safety features
• Car make, model, and age
• Your age

What Happens If I Damage Property?

If you are on vacation in Wilmington and hydroplane down a water-covered roadway from a recent tropical storm and crash into another car, who pays for the damage?

Since North Carolina is an at-fault state, if you caused the accident, your insurance will pick up the tab — up to your policy limits. You will still be responsible for any costs over your limits, which is why some drivers choose to bump up coverage in today’s world of high costs for cars, auto parts, and medical.

How Many Crashes Occur in North Carolina?

The National Highway Traffic Safety Administration statistics show there were 1,449 fatal crashes in North Carolina in 2023. You can see a breakdown of the number of accidents in a handful of North Carolina cities in 2023 in the chart below:

City	Annual Average Number of Fatal Car Crashes
Chapel Hill	3
Charlotte	84
Elizabethtown	0
Fayetteville	20
Fort Bragg	0
Greensboro	33
Halifax	0

Uninsured/Underinsured Motorists in North Carolina

Nearly 12 in 100 North Carolina drivers had no insurance in 2023. That means 11.8% of drivers have no auto policy, ranking North Carolina as the 29th state among the 50 states with the most uninsured drivers.

North Carolina, however, ranks in the top ten of the least expensive states for auto insurance. Your agent can help set you up with the minimum coverage of about $36 per month — a small price to pay that can help you avoid significant expenses in the long run if you have an accident.

Auto Insurance Info by City