Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Former Farmers Insurance CSR

UPDATED: Nov 12, 2020

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North Carolina State FlagKnown fondly by its residents as the Tar Heel State, North Carolina is the eighth-fastest growing state in the country and a popular destination for tourists. Below we’ll take a look at North Carolina auto insurance, and how it affects drivers in the state.

North Carolina Auto Insurance Laws And Requirements

In North Carolina, the state liability coverage minimums are:

  • Bodily Injury Liability Coverage – $30,000 per person
  • Bodily Injury Liability Coverage – $60,000 per accident
  • Property Damage Liability Coverage – $25,000 per accident

Uninsured/Underinsured Motorist coverage minimums:

  • Bodily Injury Coverage – $30,000 per person
  • Bodily Injury Coverage – $60,000 per accident
  • Property Damage Coverage – $25,000 per accident

Optional coverage options in NC include:

  • Comprehensive Coverage
  • Collision Coverage
  • Medical Payments Coverage
  • Rental Car Reimbursement Coverage
  • Towing/Labor/Roadside Assistance Coverage
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While minimum coverage rules used to be somewhat lax in North Carolina – things took a drastic change with new auto insurance laws that came into effect on January 1, 2009. Drivers in North Carolina (like many states) are governed under a “tort” system, which means that whenever there is an accident, one of the drivers will be determined as the “at fault” party – the one who caused the accident. The at fault party and their insurance will be responsible for paying out the treatment costs for injuries, as well as paying for any damage caused. North Carolina mandates that all drivers must have insurance coverage in four different areas; this is one of the more rigorous minimum coverage packages of any state government and ensures North Carolina drivers will have adequate protection while on the road. North Carolina’s minimum coverage policies are as follows:

Bodily Injury LiabilityBIL policies are in place to cover the medical treatment costs for anyone that you injure in an accident where you are determined to be the “at fault” party. If you cause an accident, your insurance will cover you up to the policy amount, and you will pay out of pocket for any expenses thereafter. The minimum required coverage per North Carolina state law is $30,000 per person, per accident and $60,000 for all injured parties, per accident. It’s recommended to exceed this as much as your budget allows.

Property Damage Liability – PDL coverage takes care of any automobile or other property damage costs that happen as a result of you causing an accident, such as body work and repairs on the other person’s car. The minimum coverage one can have by law is $25,000.

Uninsured Motorist Bodily Injury – Similar to the BIL description above, this policy covers the medical treatment and rehabilitation costs for the driver and passengers should they be involved in an accident caused by a driver with no auto insurance. The minimum required coverage is the same; $30,000 per person per accident and $60,000 for all parties in a single accident.

Uninsured Motorist Property Damage – Again, similar to the PDL description above, this coverage protects the driver against property damage caused by an uninsured motorist in an accident – for instance, should an insured driver hit your car, your body work and repairs would be covered. The minimum coverage required by law is $25,000.

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North Carolina Auto Insurance Rates

When it comes to insurance premiums, drivers in most of North Carolina enjoy below average rates when compared to the rest of the nation. The statewide average cost for North Carolina auto insurance premiums is about $1220 per year, which works out to just over $100 per month.

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As with most states, however, insurance premiums rise for drivers that live in North Carolina’s major cities. Drivers in Raleigh can expect to pay about $105 per month, while drivers in Charlotte will see premiums north of $118 per month on average. Auto insurance costs are typically higher in metropolitan areas, as there is a higher risk of both accidents and auto theft.

Let’s take a closer look at the ZIP codes within the state to see how rates changed based on different areas.

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There are a lot of factors that auto insurance companies take into consideration when determining your rates. Take a look at our overview here.

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While many of these factors are simply based on your own driving record, two things that affect even the safest drivers are age and gender. Thankfully, insurance companies are outlawed from charging different rates based on gender.

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Company vs state: Oregon Auto Insurance Rates by Company

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But which companies are the largest, holding the most market share percentage in the region?

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NC Driving Statistics

Speaking of accidents – North Carolina drivers have much to be proud of. The auto crash rates have been steadily declining in the state as drivers take more care while on the road and enforcement programs have stepped up. In 2007, the Department of Transportation recorded a total of 224,000 total crashes, with 1706 fatalities resulting from these accidents. Just one year later in 2008, this total had dropped to just over 214,000 crashes and only 1448 fatalities. Data for 2009 and 2010 are not yet available through the North Carolina DoT but all signs point to continued reductions in total crashes, deaths and injuries.

In regards to auto thefts, things are improving for North Carolina after being listed in the top 10 states for auto thefts in 2008. 2009 saw a major reduction in vehicle thefts, with the total dropping to 20,024 from 26,724 a year earlier. The 2009 rate was about 213 thefts per 100,000 residents; this represented a major drop from the 2008 auto theft per capita rate of 289 thefts per 100,000 people. Even as the population of North Carolina continues to grow year after year, the auto theft rate trends downward – a good sign for those who have to purchase auto insurance in the state.

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NC Auto Insurance Agents

NC Auto Insurance Quotes

It pays to do a bit of investigating before purchasing North Carolina auto insurance. Talk to your friends, family and others that you know in North Carolina to find out where they have found the best deals. If you can get a referral to a good auto insurance agent, it may be worth sitting down to chat about your background to see if you qualify for any discounts. Auto insurance is mandatory in North Carolina – but paying top dollar is not. With a little work and a little luck, you’ll get a great deal on your auto insurance.

Additional North Carolina Automobile Insurance Information