What car insurance costs in North Carolina

North Carolina's bill against the U.S.

The National Association of Insurance Commissioners (NAIC) reports average premiums for each state from insurers' filings. North Carolina's 2023 average expenditure was $925 per insured car, 10% above the $839 of 2022. Expenditure covers liability-only and fully insured cars together; the combined premium for a car with liability, collision and comprehensive was $1,097.

Liability is where North Carolina differs most: $448, about 39% under the national figure, which leaves it barely above collision at $441. Collision runs about 5% below the U.S. number and comprehensive about 13% below. All of these figures come from 2023, before the minimum limits rose, so they don't show what the higher floor does to a bill. Your own price still depends on your record, car and location; see how your driving record sets a price.

The coverage North Carolina requires

According to the NCDMV, policies issued or renewed after July 1, 2025 need at least $50,000 for injury to one person, $100,000 for injuries to two or more people and $50,000 for property damage. Older policies carried 30/60/25 until they renewed. The property damage floor doubled, from $25,000 to $50,000, which matters if you hit a newer car.

• Uninsured and underinsured motorist coverage is required under G.S. 20-279.21 on every policy, including those well above the minimums.
• Collision and comprehensive are optional under state law, though a lender will usually require them.
• Continuous coverage is watched: insurers must tell the NCDMV when a policy lapses or is canceled, and the owner then gets a termination notice.

Letting coverage lapse costs money on its own. From October 1, 2026 you have 30 days to respond to a termination notice (10 days before that). Ignore it and the plate can be revoked; getting it back means a civil penalty of $50, $100 or $150, depending on prior lapses in the last three years, plus a $50 restoration fee. Our page on insurance lapses explains what a gap does to future quotes.

How North Carolina sets car insurance rates

North Carolina uses a rate bureau. The North Carolina Rate Bureau, created by the General Assembly under Article 36 of Chapter 58, proposes rates for nonfleet private passenger auto insurance on behalf of its member companies. By February 1 of each year it files its data and any proposed rate changes with the Commissioner of Insurance, and new rates can take effect no sooner than 210 days after the Commissioner receives the filing unless both sides agree to an earlier date; the law also provides for hearings. Individual insurers can deviate from bureau rates, and the bureau posts periodic deviation updates.

Insurers may use credit scores in setting premiums, the North Carolina Department of Insurance (NCDOI) explains in its consumer guide. Credit can be the only basis for a discount, but it can't be the only reason to terminate a policy that has been in force more than 60 days. Read more about credit-based insurance scores.

The Reinsurance Facility for high-risk drivers

North Carolina's safety net works behind the insurer. Companies can cede policies to the North Carolina Reinsurance Facility, a reinsurance pool that state law charges with assuring that auto insurance is available to any eligible risk. The policy is still issued by the insurer; the Facility reinsures it, for standard coverages that include bodily injury and property damage liability, medical payments and uninsured and underinsured motorist coverage. Our guide to high-risk driver options compares this setup with other states' plans.

Ways to pay less in North Carolina

1. 1 Compare insurers anyway. Bureau rates set a common starting point, but deviations and discounts mean companies can still quote the same driver differently.
2. 2 Re-check limits at renewal. If your policy renewed into the 50/100/50 floor, compare quotes at a few liability levels to see what each step really costs.
3. 3 Never let coverage lapse. A gap brings state penalties and fees on top of any effect on your next premium; start a new policy before ending the old one.
4. 4 Call NCDOI with questions or complaints. The Department's toll-free consumer line is 855-408-1212.

Questions drivers ask