Why Is Car Insurance So Expensive in North Carolina? (2026)

4 reasons why car insurance is so expensive in North Carolina

The average car insurance rate in North Carolina is $92 per month, which is the eighth-cheapest in the U.S. and about 35% lower than the national average of $142. Although rates in North Carolina are less expensive than in neighboring states, they’re still up an average of 7% over 2025, according to Insurify data.

The increase in car insurance rates in North Carolina has four main reasons: higher minimum-coverage requirements, 2025 auto insurance rate filings, rising claims costs, and rating changes under a new state law.

Learn more about the factors behind North Carolina’s car insurance rates and what you can do to reduce your costs.

Higher minimum liability requirements

North Carolina increased its required minimum limits.

As of July 1, 2025, North Carolina drivers renewing or purchasing a policy must now carry bodily injury liability with a minimum of $50,000 per person and $100,000 per accident, up from $30,000 per person and $60,000 per accident. Property damage liability limits must be at least $50,000, up from $25,000. The law also now requires underinsured motorist coverage.^[1]

2025 rate filing

Although State Insurance Commissioner Mike Causey blocked a proposed increase of 22.6% from the North Carolina Rate Bureau (NCRB), base rates were still up 5% over the previous year.^{[2] [3]} Right now, there’s no proposed rate increase for the fiscal year starting Oct. 1, 2026, according to the NCRB.

Rising claims costs

In its 2025 rate filing, the NCRB showed claims costs increased more than 7% for bodily injury, 4% for property damage, and 7% for comprehensive over the last three years.^[4]

One estimate of damage from 2024’s Hurricane Helene places the overall cost to insurers at $6.4 billion, according to an independent risk agency, which affects auto insurers’ bottom line for years to come.

Rating changes under new state law

In addition to the increases to liability minimums and the underinsured motorist coverage requirement, state law also changes rating surcharges.

The surcharge for new drivers and those with limited driving experience formerly lasted three years but will now last eight years, according to the North Carolina Department of Insurance (NCDOI).

Also, certain driving violations that result in points under the North Carolina Safe Driver Incentive Plan will stay on your driving record for five years, up from three years. These changes mean your rates may stay higher for longer, depending on your driver profile and motor vehicle record.

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How North Carolina car insurance rates have changed

The average annual rate for car insurance in North Carolina is $1,381, about 32% higher than five years ago ($1,053).

Over those five years, average annual rates hit their lowest in June 2022, at $981. Rates peaked in July 2024, at $1,437 — 4% higher than today’s rates and 32% higher than the 2022 low.

The graph below shows how car insurance rates have changed over time in North Carolina.

North Carolina cities with the most expensive car insurance

Car insurance rates vary across North Carolina due to a variety of factors, including population density, traffic congestion, drunk driving rates, crash rates, and repair labor and medical costs.

Full-coverage rates are cheapest in Morrisville ($85) and Chapel Hill ($86). Rates are most expensive in Charlotte ($122) and Wilson ($116) — though they’re still not far from the state average of $115 for full coverage. 

It’s worth noting that Charlotte is a rapidly growing city of almost 1 million residents, which is worsening congestion and may contribute to its steep insurance rates.^[5]

The table below shows the five cities in North Carolina with the most expensive car insurance.

City	Average Monthly Quote
Charlotte	$102
Wilson	$95
Greenville	$96
Gastonia	$98
Fayetteville	$98

Disclaimer: Table data is based on real-time North Carolina quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.

Here are some reasons why rates are so expensive in these North Carolina cities, according to state and city data:

• Charlotte: Charlotte, with a population of about 965,000, is the 14th-largest city in the U.S. It ranks No. 5 in North Carolina for crashes.

• Wilson: Wilson, with a population of about 49,500, ranks No. 20 for crashes.

• Greenville: The county seat of Pitt County, Greenville is another rapidly growing metro area in North Carolina and the 10th-largest city in the state. It’s No. 11 in the state for crashes.

• Gastonia: Just over 20 miles from Charlotte, Gastonia’s traffic and its No. 10 statewide ranking for auto crashes influence the city’s higher rates.

• Fayetteville: The sixth-largest city in North Carolina, Fayetteville ranks No. 8 for crashes.

The table below shows the average monthly quote for multiple cities in North Carolina.

The below rates in North Carolina are estimated rates current as of: Thursday, July 9 at 5:00 PM PDT. 

City	Average Monthly Quote
Chapel Hill	$70
Asheville	$72
Morrisville	$72
Cary	$78
Mooresville	$78
Burlington	$79
Wilmington	$79
Rocky Mount	$80
Jacksonville	$82
Durham	$83
Hickory	$83
Raleigh	$87
Goldsboro	$90
Greensboro	$90
Concord	$92
Kannapolis	$93
Matthews	$93
High Point	$94
Wilson	$95
Greenville	$96
Fayetteville	$98
Gastonia	$98
Charlotte	$102

Disclaimer: Table data sourced from real-time North Carolina car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in North Carolina may vary based on the policy buyer's unique driver profile.

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How to lower your car insurance rate in North Carolina

Maintain safe driving habits, comparison shop, work on improving your credit, and seek out discounts to lower your car insurance rate in North Carolina.

• Drive safely to keep SDIP points low. The North Carolina Safe Driver Incentive Plan (SDIP) insurance assigns points and imposes surcharges of 40% to 340% for various violations, including speeding tickets, at-fault accidents, and driving while impaired (DWI) convictions.^[6] Maintaining posted speed limits and following safe driving habits can help you keep a clean driving history and avoid convictions that will raise your rates.

• Compare car insurance rates. Rates vary widely from one insurance company to another, so it’s a good idea to shop around often. For example, in North Carolina, State Farm’s average monthly rate for full coverage is $157, 45% higher than Progressive’s average rate of $87.

• Work on improving your credit. Car insurance companies in North Carolina may use your credit-based insurance score as one rating factor in setting your insurance rates.^[7] Improving your credit by making on-time payments and paying down balances can help you earn lower car insurance rates.

• Seek out discounts. In North Carolina, 67% of people are homeowners.^[8] Bundling your home and auto policies often results in a lower rate.

Why car insurance is so expensive in North Carolina FAQs