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2025-2026 Law Change in North Carolina

North Carolina raised minimum liability limits from 30/60/25 to 50/100/50 effective 1 July 2025, and raised the minimum UM and UIM limits to match (SL 2023-133). Full details →

Updated NAIC 2023 data | Rank #8 of 51 by average expenditure

Car Insurance Cost Per Month in North Carolina

Full coverage avg

$91/mo

Minimum coverage avg

$37/mo

State minimum reqs

50/100/50
UM required

North Carolina's Reinsurance Facility creates a competitive market for most drivers, and the state sits in the cheapest third on the NAIC measure. UM cover is required, and the minimum limits rose in July 2025. Adjust age and vehicle below to see your estimated monthly cost.

North Carolina

in North Carolina with a Sedan

$105/month

Anchored on the state average for a policy with liability, collision and comprehensive. -$15 below national avg

State Min$43/mo50/100/50
Standard$74/mo50/100/50
Full Coverage$105/mo100/300/100

State anchor: NAIC Auto Insurance Database Report, 2023 data year. Age and vehicle adjustments are modelled.

How we calculate this

Modelled Monthly Cost by Age in North Carolina

AgeMin CoverageFull Coverage (Sedan)Details
16$145$356Age 16page →
17$132$324Age 17page →
18$115$282Age 18page →
19$98$241Age 19page →
25$43$105Age 25page →
35$36$89Age 35page →
45$37$91Age 45page →
65$40$99Age 65page →

Top 3 Carriers in North Carolina by Market Share

1
State Farm
By direct written premium
2
Erie
By direct written premium
3
NC Farm Bureau
By direct written premium

Market share does not equal the cheapest rate for your profile. Compare at least three carriers.

Nearby States by Cost Rank

North Carolina Car Insurance FAQs

What is the average car insurance cost per month in North Carolina?
On the 2022/2023 Auto Insurance Database Report (2023 data year), a policy in North Carolina carrying liability, collision and comprehensive averaged $91 a month, and the liability portion alone $37. The average insured vehicle in the state cost $77 a month, whether or not it carried the physical damage coverages, which ranks North Carolina #8 of 51 jurisdictions (1 = cheapest). These are averages across every driver, vehicle and limit in the state, not quotes, and the NAIC series runs about two years behind.
What is the minimum car insurance required in North Carolina?
North Carolina requires minimum liability coverage of 50/100/50. Uninsured Motorist (UM) coverage is also required. See the law changes section below for recent updates to minimum limits.
Who has the cheapest car insurance in North Carolina?
The top three carriers by market share in North Carolina are State Farm, Erie, NC Farm Bureau, per NAIC market share filings. Market share does not equal cheapest price -- the best rate for your specific profile (age, vehicle, driving record, credit score in states where legal) requires comparing quotes. We recommend comparing at least 3 carriers. carinsurancecomparisontool.com offers a side-by-side carrier comparison.
Does North Carolina have no-fault insurance?
No. North Carolina is an at-fault state. When an accident occurs, the at-fault driver's liability coverage pays for the other driver's injuries and property damage. This means your state-minimum liability coverage must be high enough to cover a potential claim against you.
Why is car insurance so cheap in North Carolina?
North Carolina's Reinsurance Facility creates a competitive market for most drivers, and the state sits in the cheapest third on the NAIC measure. UM cover is required, and the minimum limits rose in July 2025.
Is my credit score used for car insurance in North Carolina?
Yes, in most cases. North Carolina allows insurers to use a credit-based insurance score (distinct from your FICO) to predict claim likelihood. A poor credit-based score can add 20-100% to your premium. Improving your credit over 12-24 months can generate meaningful savings at renewal.

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