Car Insurance Situation in North Carolina

In most states, car insurance rates vary dramatically among insurers. Differences are smaller in the Tar Heel State because of certain laws, but drivers looking for cheap auto insurance in North Carolina can still save quite a bit by shopping around and comparing rates.

To help, NerdWallet looked at car insurance quotes from the five largest insurance companies in North Carolina and found the three cheapest options for these distinct driver types:

Good drivers

Young drivers

Families with one teen driver

Drivers with poor credit

Retired drivers

Cheapest auto insurance for good drivers

For drivers with no at-fault accidents, DUIs or moving violations; range of average prices: $687 to $1,037 a year

The average annual premium for good drivers among the three cheapest companies was $884. Auto insurance companies love safe drivers. If you have no at-fault accidents or moving violations, you’ll usually get pretty competitive rates, but you’ll still have to shop around for the top deal. We found a range of almost $400 between the lowest and highest quotes in this category. Good drivers also might qualify for safe-driver discounts, which vary by company.

Cheapest for young drivers

For drivers in their early 20s; range of average prices: $355 to $411 a year

Drivers in their early 20s can often get by with less coverage than older motorists, who may have families and pricy assets to worry about, and as a result can find very cheap in North Carolina. The state also bans insurers from basing rates solely on age, which helps, too. It’s hard for young drivers to go wrong with any of the three cheapest companies from our test; they all notched sample premiums under $35 a month. In fact, overall this category only had about $50 difference between lowest and highest estimates, an extremely small gap.

Cheapest for families with one teen driver

For middle-aged couples with one teen driver; range of average prices: $2,506 to $2,753 a year

Teens bring heightened accident risk to their parents’ policy, and typically heightened rates to boot. The three lowest rates for this category were about $1,500 to $2,000 per year more than the three lowest for good drivers on a solo policy. Parents should look for discounts their teens can bring to the table to help keep costs down — such as those for scoring good grades or attending school away from home.

Cheapest for drivers with poor credit

For drivers placed in the lowest credit tier as determined by the industry; range of average prices: $978 to $1,046 a year