If you’re shopping for the best car insurance in North Carolina, it’s important to consider all of your options.
Although securing a lower rate might be ideal, there is more value in comparing the coverage options, claims processes, and customer reviews and ratings of each provider.
If you consider all of these elements before committing to a provider, you’ll be able to feel secure in your decision knowing the company will come through for you when it’s time to file a claim.
Insurance premiums are influenced by several factors, including your gender, age, driving record, and vehicle.
Your insurance provider also uses your place of residence and elements that pertain to your location to determine your rate.
Understanding exactly how these factors affect your policy can help you ask the right questions and secure the best rate.
The information below is meant to help you understand how the price of car insurance is calculated throughout North Carolina and help you find a policy that offers the coverage you need at the best price.
Average Cost Of Car Insurance In NC
Knowing the price of car insurance for the average driver in North Carolina can help you understand whether or not the rates you’re quoted are fair and reasonably priced.
According to the National Association of Insurance Commissioners, insurance rates in North Carolina followed a trend of increasing by approximately $20 each year between 2011 and 2015.
Compared with surrounding states, as well as the countrywide average, the average price of insurance in North Carolina is much lower.
|Countrywide Average Cost of Car Insurance||$1,009.38|
|Average Cost of Car Insurance in North Carolina||$789.09|
|Average Cost of Car Insurance in South Carolina||$973.10|
|Average Cost of Car Insurance in Kentucky||$938.51|
|Average Cost of Car Insurance in Virginia||$842.67|
Factors Affecting Car Insurance Premiums In North Carolina
While you shop for insurance, keep in mind that your rate isn’t only determined by your driving history, yet many other factors—including certain conditions in your geographical location—are taken into account.
Conditions such as traffic density and accident rates in North Carolina directly affect the rate you pay for your car insurance.
When reviewing these statistics, remember that conditions in metropolitan areas such as Charlotte and Greensboro are normally worse than in rural areas throughout the state, making car insurance rates higher in more densely populated areas.
According to the NAIC’s report on traffic density, there were 1,016,059 vehicle miles driven per highway mile throughout North Carolina in 2014.
North Carolina’s traffic density was considerably higher than the countrywide average of 724,348. Vehicle miles per registered vehicle (determined by comparing the total number of miles driven against the number of registered vehicles in the state) were 14,060, which is a bit closer to the countrywide average of 12,010.
Fatal accidents in North Carolina occurred at a rate of 0.17 per 1,000 registered vehicles. This number is slightly above the countrywide average of 0.13 per 1,000 registered vehicles.
The high traffic density and fatal accident rates in North Carolina may impact insurance rates for drivers throughout the state.
Vehicle Theft Rate
According to the Insurance Information Institute, North Carolina doesn’t rank among the states with the most nor the least motor vehicle thefts.
Throughout the state, 150.8 auto thefts occurred per 100,000 residents in 2016, largely in metropolitan areas, which is quite a bit below the U.S. average of 236 motor vehicle thefts per 100,000 residents.
The National Insurance Crime Bureau’s Hot Wheels Report shows that throughout North Carolina, the Honda Accord and Ford Pickups are the most commonly stolen vehicles.
Throughout 2016, 703 Honda Accords and 500 Ford Pickups were stolen. Other vehicles that are common theft targets in North Carolina are Toyota Camrys, Honda Civics, and Chevrolet Pickups.
To avoid increased insurance costs, choose to drive a vehicle with lower theft rates.
Population Density In North Carolina
According to the NAIC, while the population density in your area doesn’t have a direct effect on your insurance rate, it does affect your rates indirectly.
Areas with higher population densities have a greater number of vehicles, increasing theft and accident rates.
In North Carolina, the population density in 2014 was 204 persons per square mile, more than double the national rate of 90 persons per square mile.
Most of North Carolina’s population, 70.1 percent, resides in metropolitan areas. If you live in rural areas of the state, you may be eligible for lower insurance rates.
Another factor with an indirect effect on insurance rates is the average disposable income throughout the state.
Typically states with higher disposable incomes generally have more vehicles with high values, which leads to a higher risk for insurance companies.
According to the NAIC, the per capita disposable income per person in 2014 was $35,099, slightly lower than the countrywide average of $40,859.
It’s important to remember that income differs between metropolitan and rural areas and is generally higher for those living in large cities.
Companies With The Best Car Insurance In NC
When you’re in North Carolina, it’s smart to shop comparatively.
The best way to do this is to request quotes from a minimum of three insurance providers and compare each company’s rates, coverage, reviews, discounts, and financial strength.
Companies with extremely low rates might not provide sufficiently reliable coverage. That’s why it’s best to shop around and find an insurance provider that offers the best value for the money.
The best way to make sure you’re buying insurance from a reliable provider is to shop with reputable companies with recognizable names.
Progressive has been in the insurance business since 1937.
It has a fantastic reputation for providing Americans with reliable auto insurance with a speedy and convenient claims process.
It has a wide range of policy offerings that feature 24/7 claims processing and a Name Your Price option.
Allstate was founded in 1931 and has since grown to provide insurance policies to over 16 million households worldwide.
It offers insurance options that include home, auto, and business policies.
T he company is well-known for offering a Safe Driving Bonus to its policyholders.
Liberty Mutual offers insurance services including personal auto, home, and life insurance, as well as commercial underwriting.
It operates on a global scale and offers perks such as a 12-month rate guarantee and a New Car Replacement policy.
MetLife Insurance offers a broad scope of insurance and financial services.
Its insurance policy offerings include auto, home, dental, health, and life. Policyholders with MetLife have the chance to qualify for many different discounts.
Esurance is a well-known subsidiary of Allstate. It serves over 5 million drivers with simple insurance plans that with a limited scope of features or options.
Nevertheless, the company’s rates are a reasonable rate and customers can file claims online.
USAA exclusively serves military members and their families.
It has offered both home and auto insurance policies since 1922 and is known for low rates and friendly, professional customer service.
Travelers operates in several countries throughout the world and offers coverage options for both home and business.
Its IntelliDrive® smartphone app makes it simple for policyholders to manage their policy and file claims quickly and conveniently.
What Is Mandatory For Car Insurance In NC?
There are minimum auto insurance requirements in most states.
According to the North Carolina Department of Insurance, all drivers must carry liability insurance. Certain limits are set out by the state regarding how much coverage drivers must obtain.
These limits are as follows:
- $30,000 for injuries per person
- $60,000 for total injuries per accident
- $25,000 for property damage
Drivers in North Carolina must present proof of insurance to register their vehicle.
How To Reduce The Cost Of Your Car Insurance In NC
Buying car insurance is the only way to fully protect yourself from costly repairs and medical bills after an accident.
Although it may seem that car insurance is a big expense, you can take steps to keep costs down.
Once you’ve found the best car insurance in North Carolina, you can take advantage of the following tips from the Insurance Information Institute to lower your insurance rate:
- Request an increase to your deductible
- Bundle your policies
- Reduce coverage on older vehicles
- Pay your insurance policy a year at a time or set up automatic payments
Most insurance providers offer discounts that are meant to reward their policyholders for things that decrease the likelihood of a claim, such as safe driving habits, buying a vehicle with plenty of safety features, and adding a student driver who receives high grades.
When you’re shopping for an insurance policy, make sure you keep the following information on hand so that you can get an accurate quote that includes all eligible discounts:
- Vehicle information including make, model, year, VIN, usage habits, safety features, and anti-theft devices
- Information for all drivers on your policy including the age and driving history, as well as grades for any teen drivers in your household
- Household information such as address and parking arrangements, and an estimate of assets that require protection
What Can Increase The Cost Of Your Car Insurance?
While several factors result in lower insurance rates, there are also many that can lead to paying a higher price for your premiums.
While some of these are beyond your control, others are easily avoidable.
Increased insurance rates are often the result of multiple traffic violations or driving under the influence.
Obeying traffic laws, taking the time to enroll in traffic courses, and contesting tickets when it’s justified can help keep your rate reasonable.
Overall Vehicle Value
A vehicle with a higher price is normally subject to higher insurance premiums due to the high cost of repairs or replacement in the event of an accident.
Choosing a vehicle with a lower value may qualify you for lower rates.
Vehicle Safety Ratings And Potential To Cause Damage
If you have a vehicle that has consistently received negative ratings in the IIHS or NHSTA safety tests, you are probably paying higher insurance rates.
To avoid paying increased insurance costs, consider purchasing a vehicle that has performed well in safety tests or comes with advanced safety features.
With the information listed above, you should have a good answer to the question, “How much is car insurance in North Carolina?” and be able to effectively compare top insurance companies against each other to determine which one can offer you the best value and coverage for your needs.
*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.