The Best Auto Insurance in North Carolina 2024

For families with young drivers in North Carolina, State Farm has the cheapest rates among our top picks, at $1,774 annually for full coverage. For families without young drivers, State Farm’s average annual rate is $1,049, making it the cheapest option on our list after Erie. Whether you’re a young driver, a homeowner, a low-mileage driver, a rideshare driver or something else, State Farm will probably have a discount or coverage option for you.

Low Rates for Young Drivers

Teens and young drivers pay more for auto insurance than any other age group, due to their lack of driving experience and higher likelihood of getting into an accident. If you’re adding a teen driver to your policy, it’s worth getting a quote from State Farm. At $1,774 annually it has the lowest average rates for young drivers in North Carolina among our top picks, and its rates are over $1,000 below the statewide average for teens.

Note that State Farm’s Steer Clear young driver education program is not available in North Carolina. That said, its baseline rates are still competitive.

Improve Your Rates and Driving Habits

State Farm’s Drive Safe and Save behavior-based driving program can help you save on car insurance regardless of your age, driving history, credit score, or other factors that impact premiums. You get a discount just for signing up for the program, and you can earn up to 30 percent off your premiums by completing the program.

Note that according to State Farm, this discount “may not be available in NC depending on individual facts and circumstances”—so it’s best to speak to your agent to find out if you qualify. One of our colleagues in North Carolina recently reported being able to sign up for the discount.

Here’s how Drive Safe & Save works:

1. Download the app in the App Store or on Google Play or by texting “SAVE” to 42407.
2. Follow the app’s step-by-step instructions.
3. Complete the setup after State Farm sends you a Bluetooth beacon.

The app will record your driving habits and calculate your driving score every six months. To get a good score, make sure you’re not accelerating or speeding, slamming your brakes, or turning too sharply. Additionally, the app will track how many miles you drive. State Farm recommends driving fewer than 7,500 for personal usage to receive a low-mileage discount.

Many Local Agents in North Carolina

State Farm distinguishes itself through its network of captive local agents, who work solely for State Farm. (Independent agents, on the other hand, represent multiple insurance companies). Working with a captive agent offers personalized service, as the agent can provide in-depth knowledge of State Farm’s coverage options and potential discounts.

State Farm has agents in over 100 North Carolina cities and towns, from Advance, NC to Zebulon. This includes agents in Charlotte, Greensboro, Durham, Winston-Salem, Fayetteville, and state capital Raleigh.

With nearly 100,000 active duty military members/military families and nearly 750,000 veterans, North Carolina is home to the fourth-largest military population in the country.³ If you are part of the North Carolina military community, consider USAA for auto insurance. Along with Erie and State Farm, USAA offers some of the most competitive rates in the auto insurance industry. It also ranks the highest on several third-party rating systems, including J.D. Power and AM Best.

Store and Save With USAA

If you’re deployed overseas or in a different state, you can keep your vehicle in North Carolina and save with a USAA storage discount. Here are the three main saving opportunities USAA offers for deployed military members.

International Availability

Although deployed military members don’t have the luxury of bringing their families overseas with them, military members stationed overseas can get approval for their families to join them.⁴ If you and your family are stationed in one of the below international locations, transferring your insurance will be simple and seamless with USAA.

• Azores
• Belgium
• Cuba
• France
• Germany
• Greece
• Guam
• Italy
• Netherlands
• Portugal
• Puerto Rico
• South Korea
• Spain
• United States Virgin Islands
• United Kingdom

Excellent Third-Party Ratings

Third-party rating systems ensure auto insurance providers are competently managing their finances and upholding their service standards. USAA is consistently ranked among the best in the auto insurance industry for customer service, financial security, claims satisfaction, and more:

• AM Best rating: AM Best, which rates the financial security of insurance companies, awarded USAA an A++ (Superior) rating.⁵ An A++ rating is the highest-possible AM Best score. A high rating indicates a company has the financial solidity to pay out claims.
• Standard & Poor’s (S&P): S&P assesses auto insurance risk levels. It gave USAA a rating of AA+, which is the second-highest rating. This is a good indication that USAA will repay its debts with little risk of default.
• J.D. Power Studies: In 2023, J.D. Power gave USAA a 900 out of 1,000 for claims satisfaction, outranking every other company on our list. It also received a score of 759 in the southeast region on J.D. Power’s 2024 Customer Satisfaction Study, the highest of any company. (Note: in both of these studies, USAA technically does not qualify to rank due to its limited availability).

Among our top picks, USAA received the highest scores from AM Best for financial strength, and J.D. Power for claims and regional customer satisfaction. However, its rating from the CRASH Network insurer report card is low (D+), which suggests some customers may have had mixed experiences filing claims with USAA. Customers may have a better claims experience if they take their car to a USAA direct repair (“in-network”) shop.

If you’re a new driver, a teen driver, or someone with a history of accidents, it might be difficult to find car insurance at an affordable rate. In some cases, auto insurance providers aren’t even willing to insure you as a high-risk driver because of the financial risk it would entail. Direct Auto helps fill this gap by offering specialized car insurance catered to high-risk drivers, with 30 offices in North Carolina.

Tailored for High-Risk Drivers

North Carolina ranks average or slightly below average on several categories that car insurance providers consider when assessing your risk level as a driver. Below, we’ll look at some of the most common background categories car insurance providers leverage to determine your rates and eligibility.

Insurance providers may also consider you a high-risk driver if you fall into one of the following categories:

• Haven’t had coverage in the past six months
• Received your license recently
• Drive an expensive vehicle
• Teen driver
• Have a history of claims and/or a bad driving record

The national average cost of insuring a driver with a DUI is $3,328 annually. In North Carolina, expect to pay around $2,800 annually for liability-only coverage after a DUI, and upwards of $4,500 for full coverage after a DUI. Direct Auto will not only insure you if you’re a high-risk driver, but it can bring your car insurance costs down with sizable discounts and a dedicated team to walk you through the process. Learn more about DUI/DWI laws in North Carolina.

On average, drivers with DUI’s experience the most significant rise in premiums of any high-risk driver designation—in North Carolina, and nationally.

Rates for Direct Auto are not available, but this provider is known nationally for its affordable rates for high risk drivers. Erie also offers very reasonable rates for high-risk drivers. Allstate offers some of the most expensive rates for drivers with DUIs, at-fault accidents, or speeding tickets in North Carolina.

Finally, Direct Auto gives high-risk drivers flexible payment options, including the opportunity to pay in person. You can also visit a Direct Auto office to receive further guidance on your coverage needs. Direct Auto has physical locations in the following North Carolina cities:

• Burlington
• Charlotte
• Dunn
• Durham
• Fayetteville
• Gastonia
• Goldsboro
• Greensboro
• Greenville
• Henderson
• Hickory
• High Point
• Jacksonville
• Kannapolis
• Lexington
• Raleigh
• Reidsville
• Rocky Mount
• Salisbury
• Selma
• Shelby
• Statesville
• Wilmington
• Wilson
• Winston Salem

Ample Discounts

Direct Auto offers one of the longest lists of discounts among any provider, small or large. You can earn savings of up to 20 and 25 percent in multiple categories, which is more than most large providers offer. Here are a few of its largest discounts:

Several Coverage Options

In North Carolina, you need minimum liability (bodily injury and property damage coverage) as well as uninsured motorist coverage to drive legally. However, to be safe on the road, you will often need more than the minimum requirements. With Direct Auto, you can extend your limits and integrate several add-ons and other insurance types into your plan. Here’s what Direct Auto offers if you’re looking to bundle and add additional coverage:

• Collision coverage: Collision coverage pays for damages if your vehicle is on the receiving end of another vehicle, object or hit-and-run accident.
• Comprehensive coverage: Often referred to as “other-than-collision coverage,” comprehensive insurance helps pay for damages outside of collisions. This might include theft, vandalism, fires, weather damage, accidents with animals (like deer), damage from rocks being picked up on the road and other noncollision damages.

• Medical payments coverage:MedPay will help pay for some medical, hospital and funeral expenses, regardless of who’s at fault in an accident. MedPay will follow you, so you get the coverage whether you’re driving, sitting as a passenger in a friend’s car, on a walk, or on public transportation in and outside of North Carolina.
• Roadside assistance: Direct Auto’s roadside assistance offers 24-hour coverage for car breakdowns, towing services, flat tires, essential auto fluid deliveries, and other roadside emergency-related incidents.
• Rental reimbursement: If you get into a covered accident, Direct Auto will reimburse you for some of the rental costs while your car is in the shop.

Allstate is the fourth-largest auto insurance provider in the country and the sixth-largest in North Carolina. On top of being one of the oldest and most recognizable providers in the country, Allstate offers one of the most sizable bundling discounts for homeowners. A high claims satisfaction score, seamless mobile app features, and a wide range of coverage options put Allstate in our top picks for North Carolinians.

Big Savings for Homeowners

If you’re a homeowner, you can benefit from the highest home bundling discount on our list: up to 25 percent. Bundling makes it easier to manage your various policies from the same Allstate account and the deal applies to renters insurance and condo owners, as well. Here are all the ways you can bundle with Allstate:

• Motorcycle and renters insurance
• Life and auto insurance
• Home and auto insurance
• Renters and auto insurance

Several Mobile App Features

Access customer service support and several seamless features with Allstate’s mobile app. It took us only a few minutes to download the app and create our account. From the dashboard, we could easily view our policy, pay bills, and upload a digital ID. Here’s what else we could do with the Allstate app:

• QuickFoto Claim: Upload photos of damages so you can file claims through the app directly.
• Drivewise: Allstate’s Drivewise program tracks your driving, provides key driving insights and rewards you for exhibiting safe habits on the road. On top of that, it comes with Crash Detections features, which can send for help if you’re in a crash. Drivewise is a separate app for iOS users; however, it’s part of the Allstate Android app.
• Roadside assistance: Have a problem on the road? You can request roadside assistance through the app. Allstate’s roadside assistance service is available to anyone, not just Allstate insurance customers.

The app has a 4.8 out of five-star rating on the App Store and a 3.9 on the Google Play store.

Robust Discounts

Wondering how else you can save on your car insurance? Take a look at Allstate’s robust set of discounts and talk to your agent about what other savings you might qualify for:

• Safe driver discount: Complete a defensive driving course and stay accident-free for six months and you could be eligible for this discount.
• Vehicle equipment discount: You can earn this discount by installing or already having safety features in your vehicle, such as antilock brakes or adaptive headlights.
• New-car discount: If you’re the first owner of a new vehicle and your car is either the current-year model or the last-year model, you could qualify for this discount.
• Smart student discount: Are you a student or a parent of a student? You can bring your premiums down in the following ways:
  • Maintain a B average or a GPA of 2.7 or above.
  • Store your vehicle 100 miles away from where you attend school.
  • Complete the teenSMART driver education program.
• FullPay discount: You can save on your premium if you pay your policy in full or have made all your payments on time for the past year.

By a significant margin, Erie offers the cheapest rates of any of our top picks in North Carolina. It offers auto insurance in only 12 states, but is still the 13th largest provider in the nation. As well as cheaper than average rates, Erie offers a good selection of discounts not always offered by other providers, such as vehicle storage and accident forgiveness. Erie is a great choice for people in North Carolina looking for cheap rates.

Low Rates in North Carolina

A full coverage policy from Erie in North Carolina costs only $876 a year on average. This is $625 less than the statewide average. A minimum coverage policy from Erie costs $452 on average, which is $210 cheaper than the statewide average.

Erie’s coverage and policies are geared towards drivers with clean driving histories. Still, like Direct Auto, Erie also offers affordable rates for high-risk drivers. On average, a policy for a driver with DUI costs from Erie costs $2,906 a year. This is significantly less than both State Farm and Allstate, whose average annual cost of insuring drivers with DUI are $4,854 and $9,167, respectively.

First Accident Forgiveness and Other Extras

Along with Allstate, Erie offers accident forgiveness in North Carolina. If you choose to add accident forgiveness to your policy (which usually costs no more than a few dollars monthly), Erie will not add a surcharge to your premiums after your first at-fault accident. Typically, you must be an Erie customer for at least one year in North Carolina in order to be eligible for accident forgiveness.

Erie also offers a number of add-ons you won’t find everywhere else. Erie’s ‘Xtra’ Protection features include the following:

• $75 per passenger for accommodation if something happens to your vehicle on a road trip and you find yourself stranded.
• Pet medical coverage up to $500 for up to two pets, if they are injured in an an accident in your vehicle
• $75 reimbursed towards the cost of a locksmith should you lock yourself out of your car
• Up to $350 of property damage if your belongings are damaged in an accident
• A seven day grace period to notify your agent of a new vehicle purchase

Discounts to Lower Your Premiums Further

Also like Allstate, Erie offers a large selection of discounts, including:

• Multi-vehicle: Applies to households insuring two or more cars with Erie. Erie also offers some multi-policy discounts, depending on which state you insure your home and vehicle.
• Diminishing deductible option: For each consecutive year you don’t file a claim, Erie reduces your deductible by $100, up to a maximum of $500.
• Vehicle storage: Erie offers a discount for customers planning to store their vehicle for 90 days for more.
• Safety savings: Customers with safety features such as anti-theft devices, anti-lock brakes, and factory installed settings may be eligible for a discount with Erie.
• College student discount: Parents with children who are living away from home, and do not have access to their car during the college semester could be eligible for a discount with Erie.

Erie’s Youthful Driver discount, which helps lower the cost of auto insurance for brand new drivers, is not available in North Carolina. Teen drivers, or families of teen drivers, may be better off with State Farm, Allstate, Direct Auto, or USAA, who all offer discounts for younger teens. That said, Erie’s baseline rates for households with teens are still fairly competitive, so it doesn’t hurt to get a quote.