Insurance

Best Ways To Get Affordable Car Insurance In North Carolina

Unlike many other states in the US, auto insurance in the Tar Heel State is cheap. According to the Insurance Information Institute, on average, drivers pay about $835 per annum on premiums which is less than the national average of $1,674. So, getting affordable insurance coverage for you shouldn’t be hard.

The rates auto insurance companies charge are dependent on a number of factors, mostly individual factors. Auto insurance companies rate these factors differently and that is why premiums vary from company to company.

Some of these factors that determine the rate you pay for coverage include age and gender. Marital status, location, driving record, make and type of vehicle, marital status, and credit score.

But, we are here to help you cut costs. So we researched and found ways that will save you some money on premiums.

How To Find And Keep Cheap Car Insurance

Go shopping

Each individual company has its own rating system. Obtaining quotes from multiple insurance providers and comparing them can help you find the best policies that would suit your needs.

Avoid Infractions on your Driving Record

Accidents, speeding tickets or DUI convictions on your driving record can alter your cheap car insurance policies. Drivers with a clean record tend to pay lower premiums on auto insurance.

Increasing Deductibles

A deductible is the amount of money you would pay for damages when you’re involved in an accident before your insurer steps in. Invariably, raising your deductibles lowers your premium.

Take Advantage of Discounts

Auto insurance companies offer several discounts. Taking advantage of them can help you save more on your premium.

For instance, parents who add a teen to their policy often pay higher premiums but if the teen is able to maintain at least a B average, they may be able to get a good student discount. Also, many insurance companies offer discounts when you maintain other policies with them.

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Minimum Coverage Requirements For North Carolina Drivers

Minimum liability coverage is the least amount you must pay for insurance to protect you when involved in an at-fault accident. It covers property damages and/or injuries you caused to the other party. The North Carolina law requires that all licensed drivers should have at least, the minimum car liability insurance.

Driving legally in the state of North Carolina requires you to carry the following coverage types and limits:

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
  • $30,000 uninsured motorist bodily injury liability per person
  • $60,000 uninsured motorist bodily injury liability per accident
  • $25,000 uninsured motorist property damage liability per accident
  • $30,000 underinsured motorist bodily injury liability per person
  • $60,000 underinsured motorist bodily injury liability per accident

Although having the minimum coverage is the state law, insurance experts advise that it is better to have higher limits or coverage if you can afford it.

The reason is to protect you from out-of-pocket expenses when you are involved in a serious accident. The minimum car liability coverage may not be able to provide adequate protection for you.

Cheapest Companies For Minimum Coverage In North Carolina

Geico with an average annual premium of $260 and State Farm with an average annual coverage of $292 offer the cheapest minimum premiums in North Carolina.

If you are searching for companies offering low premiums on minimum coverage in North Carolina, you should consider these:

Car insurance companyAverage annual minimum coverage premiumAverage monthly minimum coverage premium
Geico$260$22
State Farm$292$24
Erie$365$30
Nationwide$368$31
North Carolina Farm Bureau$374$31

Cheapest Companies For Full Coverage In North Carolina

Full coverage insurance includes liability coverage that pays for damages and injuries you cause to others in an at-fault accident and collision and comprehensive insurance that pays for damages to your vehicle. Normally, it’s more expensive than minimum coverage.

Geico and State farm offers the cheapest premiums for full coverage. The table below shows the list of the top 5 cheapest companies for full coverage:

Car insurance companyAverage annual full coverage premiumAverage monthly full coverage premium
Geico$835$70
State Farm$958$80
North Carolina Farm Bureau$1,107$92
Erie$1,125$94
Penn National$1,333$111

 

Cheapest Cities In North Carolina For Minimum Coverage

Where you live in North Carolina also affects how much you pay for auto insurance. Usually, drivers in urban areas pay higher premiums than drivers in rural areas. The urban areas are denser. This means that there would be more cars on the road and higher chances of being involved in accidents.

The companies below offer the cheapest rates for minimum coverage in North Carolina.

CityAverage annual minimum coverage premiumAverage monthly minimum coverage premium
Burnsville$336$28
Lake Lure$336$28
Bakersville$337$28
Zionville$337$28

Cheapest Cities In North Carolina For Full Coverage

Urban areas generally have higher costs of living compared to rural areas. Costs of vehicle repairs and labor invariably are also higher.

Full coverage can increase your premium as it includes not only liability coverage for damages caused to the other party but also includes protection for your vehicle damages. Rural cities usually pay the cheapest premiums for full coverage.

Below are some cities that pay the cheapest premiums for full coverage:

CityAverage annual full coverage premiumAverage monthly full coverage premium
Weaverville$1,130$94
Alexander$1,132$94
Swannanoa$1,133$94
Barnardsville$1,133$94

Events That Can Affect Your Cheap Rates In North Carolina

We agree that life happens. Your auto insurance rates do not remain the same throughout life. They change as time passes.

Some life events cause your rates to change significantly such as aging, getting married, relocation, adding a teen to your policy, etc. 

All these affect the amount you pay for premiums but when it happens you may have to review your policy and shop for new ones that are more suitable for your needs.

We have highlighted below some life events that can cause your rates to change.

Adding a Teen Driver

Adding a teen driver to your policy can double your premiums. Auto insurance companies view teen drivers as high risk. This is large because of their lack of experience behind the wheels. 

To save some money on your premium as a parent adding a teen driver to your policy, you should shop around to get quotes from different insurers and compare them to find the one that costs you less.

Another way is to take advantage of good student discounts. If your teen is able to maintain a B average then you may be able to qualify for a good student discount.

Receiving a Speeding Ticket

A speeding ticket on your driving record indicates to your auto insurance provider that you do not take precautions while driving and this puts you at a higher risk of being involved in an accident.

For this reason, insurance companies charge drivers with speeding tickets more than average drivers. Still, the ratings of these companies vary. Some charge less than others, so shopping for cheaper policies can save you some money.

Involving in an At-fault Accident

Being involved in accidents generally, increases the premiums you pay for auto insurance. Insurance providers view drivers with an at-fault accident on their record as high-risk drivers and so, charge them more.

However, not all insurers hike as much. Talking to your agent about discounts can lower your premiums. Some carriers offer accident forgiveness programs for your first at-fault accident.

Deemed a High-risk Driver

Being deemed a high-risk driver affects your cheap rates in fact, it raises your premiums high above average.  A DUI conviction, accidents, and speeding tickets on your driving record put you at a greater risk of paying more. 

When you are in a case like this, the best way to cut costs on car insurance is to obtain quotes and compare them to find the cheapest policies you can afford.

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