Cheapest Auto Insurance in Chapel Hill, North Carolina (2025)

Drivers in Chapel Hill pay an overall average insurance premium of $66 per month, which is considerably lower than the national average of $143 per month and slightly lower than the North Carolina average of $75 per month. Chapel Hill’s relatively cheap car insurance could be because it’s a small, walkable college town with a lower population compared to nearby cities like Raleigh or Durham.1

Keep in mind that this figure is just an average — your premiums could be different depending on your unique situation. But you can compare quotes to find the cheapest car insurance companies for your coverage needs.

3 of the cheapest car insurance companies in Chapel Hill

When you’re shopping for car insurance in Chapel Hill, you have plenty of affordable and highly rated companies to choose from. But a few stand out from the rest as offering the best insurance coverage for Chapel Hill drivers. Here are three of the best car insurance companies based on average rates, coverages, discounts, and more.

Best insurer for liability coverage: Midvale Home & Auto

Best insurer for full coverage: Erie

Best insurer for usage-based insurance: Nationwide

How to get the cheapest car insurance in Chapel Hill

Various factors can affect car insurance rates, including a driver’s age, gender, location, credit, driving history, and more. While not all of those factors are within someone’s control, plenty are. Here are several steps you can take when shopping for insurance to get the cheapest rates:

• Shop around for quotes. The best way to find the cheapest car insurance coverage for your situation is to shop around for car insurance quotes from multiple companies. That way, you’ll be able to see which company offers the best rates based on your personal circumstances.

• Bundle your policies. If you already have other insurance products, such as homeowners insurance, renters insurance, or even life insurance, you can save on your premiums by bundling your auto policy with your existing ones.

• Save with discounts. You may be able to lower your rates if you’re eligible for one or more car insurance discounts your insurer offers. For example, you could get a discount for paying your premium up front or going a certain amount of time with no claims.

• Choose the right coverage limits. Though most states dictate minimum coverage requirements, drivers should choose coverage limits that fit their insurance needs. Make sure you choose adequate coverage to protect you in a car accident, but not so much that you’re overpaying for your insurance.

• Increase your deductible. One of the simplest ways to lower your premium is to raise your deductible, which is the amount you pay out of pocket when you file a claim. Though the average collision and comprehensive deductible is $500, you can save money by increasing it.

Cheapest liability-only car insurance in Chapel Hill: Progressive

Nearly every state requires drivers to carry liability insurance, which pays for other drivers’ damages and injuries when you’re responsible for an accident. A liability-only policy is the cheapest type of insurance you can get, but that’s because it doesn’t provide any protection for your vehicle.

Liability-only car insurance in Chapel Hill costs an average of $50 per month. The table below breaks down the average rate from the cheapest liability car insurance companies in Chapel Hill.

Cheapest full-coverage car insurance in Chapel Hill: Nationwide

Full-coverage insurance, though there’s no formal definition for it, typically includes liability, collision, and comprehensive coverages. Full coverage is more expensive, but it pays to repair or replace your vehicle after a covered incident, which liability insurance won’t do.

Full coverage is a good idea for people who drive newer, high-value vehicles and people who can’t or don’t want to pay out of pocket to replace their car. Lenders and lessors may require collision and comprehensive coverage if you finance or lease your vehicle.

The average monthly cost of full-coverage insurance in Chapel Hill is $83, but the table below shows the cheapest companies to start your search.

Car insurance requirements in North Carolina

Like nearly every other state, North Carolina requires drivers to carry both bodily injury and property damage liability insurance. North Carolina is a fault state, which means that the driver responsible for the accident is responsible for paying for injured parties’ medical expenses and property damage.

The table below breaks down the coverage limits North Carolina law requires, which increase on July 1, 2025. The changes in requirements are reflected below:3

Keep in mind that these figures show only the state-minimum requirements. You can purchase more coverage and higher limits to better protect your finances after an accident or fender bender.

In addition to the required coverages, here are some of the most common add-on options:

Cheapest car insurance for drivers with an incident

Having any sort of incident on your driving record — including a speeding ticket, at-fault accident, driving under the influence (DUI), or other moving violations — can increase your insurance premiums. The amount your rate increases depends on several factors, including the type and severity of the violation. For example, Chapel Hill drivers with a speeding ticket on their record pay an average of $71 per month for liability coverage. But a DUI increases this average rate to $88 per month for liability coverage.

Here are the cheapest Chapel Hill car insurance companies by driving history.

Average cost of car insurance by age

Young drivers, including teen drivers and drivers in their early 20s, pay the highest premiums because of their lack of experience and higher risk of an accident.4 But as you get older and gain more experience, your car insurance rates will decrease as long as you have a clean driving record. Senior drivers’ rates can spike again around 70 years old as age-related health issues can affect driving ability.

Here’s how Chapel Hill’s average car insurance rates change based on driver age.

Chapel Hill car insurance quotes by credit tier

Insurance companies believe that a driver’s credit history is an indication of their risk of filing a claim. So drivers with poor credit pay more expensive insurance rates than drivers with good credit.

The chart below breaks down the average insurance premium for drivers of each credit profile in Chapel Hill.

Chapel Hill car insurance FAQs