If you’re on the lookout for the cheapest car insurance in North Carolina, you must research and comparison shop.
If you don’t take these two essential steps, you might not get the deal you deserve.
There isn’t one simple method for calculating the price of car insurance, as the overall cost depends on several factors.
Your age, the car you drive, and where you live can all influence the eventual cost of your premium.
That’s why having a few competing offers at your fingertips can help you decide on the best rate and most appropriate level of coverage.
The information in this guide is designed to help you develop a deeper understanding of car insurance in North Carolina and learn what actions can help you grab a great deal.
How Much is Car Insurance in North Carolina, On Average?
According to the 2017 report by the National Association of Insurance Commissioners (NAIC), North Carolina is one of the cheapest states in the United States for car insurance.
With a combined average premium of $789.09 in 2015, North Carolina is a lot less expensive than the national average of $1,009.38.
This rate for North Carolina has steadily increased from the 2011 average of $708.10. The Insurance Information Institute places North Carolina as the sixth least expensive state to insure a vehicle.
|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 Georgia||$1048.40|
|Average Cost of Car Insurance in Tennessee||$871.43|
|Average Cost of Car Insurance in Virginia||$842.67|
|Countrywide Average Cost of Car Insurance||$1009.38|
Various factors which we have outlined below impact the above prices.
It’s important to consider these aspects when you’re searching for the cheapest car insurance in North Carolina.
- Traffic Conditions in North Carolina
Traffic conditions can greatly influence the cost of a premium.
Insurers believe that the more miles traveled by a vehicle, the more likely it’ll be involved in an accident.
This risk factor looks at the traffic density in an area, which is calculated by the NAIC as “the number of vehicle miles traveled per mile of roadway and the number of vehicle miles traveled per registered vehicle.”
For North Carolina’s traffic density rate, its vehicle miles per highway mile rate is 1,016,059 as of 2014, significantly higher than the national average of 724,348.
The state’s vehicle miles per registered vehicle rate is 14,060, also considerably higher than the national average of 12,010.
The fatal accident rate in North Carolina is 0.17 per 1,000 registered vehicles, higher than the national average of 0.13 per 1,000 registered cars.
- Vehicle Theft Rates in North Carolina
The higher the probability your vehicle could be stolen, the more you might have to pay more for your premium.
Areas with high crime rates often have more expensive insurance rates due to the increased likelihood of vehicle-related crime.
The FBI’s Crime in the United States report states that North Carolina has a vehicle theft rate of 150.8 per 100,000 residents, which is lower than the national average of 236 per 100,000 residents.
According to the National Insurance Crime Bureau’s Hot Wheels Report, the cars that are most likely to get stolen in North Carolina are:
- 1997 Honda Accord
- 2004 Ford Pickup (full size)
- 2007 Toyota Camry
- 1998 Honda Civic
- 2003 Chevrolet Pickup (full size)
- 2015 Nissan Altima
- 2015 Toyota Corolla
If you drive any of these vehicles, you may find that your insurance quote is on the higher end of the spectrum for North Carolina’s.
- Population Density in North Carolina
The NAIC report suggests that insurers may consider a higher population density a higher insurance risk.
Crowded communities mean more vehicles in an area at the same time and the possibility of accidents or thefts increases accordingly.
North Carolina has around 204 persons per square mile, double the national average of 90 persons per square mile.
- Disposable Income in North Carolina
While a higher disposable income can bring about the opportunity for residents to buy more modern and expensive vehicles, it also increases the economic need for coverage limits that are more than state minimum requirements.
The NAIC report lists North Carolina’s per capita disposable personal income as $35,099, which is slightly less than the national average of $40,859.
Even though some of the above statistics point to high-risk situations in North Carolina, the state is still one of the cheapest places to purchases car insurance.
Companies with the Cheapest Car Insurance in North Carolina
When you’re on the lookout for the best car insurance in North Carolina, get several quotes from competing companies.
Once you’ve obtained a minimum of three quotes, read customer reviews online to gain a better understanding of the insurer’s customer service quality.
When buying an auto policy, you should also consider the financial strength of the company. Choosing an insurance company that’s financially solid means that you can rest assured it’ll have your back in the future.
Progressive has been in business since 1937, and it has a variety of standout features, including custom parts replacement, discounts for drivers under 18, and rental reimbursement.
The company also has a full range of discounts available for both new and existing customers, including a safe driver discount, a multi-policy discount that’s perfect for households with more than one vehicle, and a paperless documents discount.
QuoteWizard’s tagline is “insurance made easy.” The company prides itself on helping consumers receive multiple quotes in a matter of moments.
The QuoteWizard website allows customers to quickly compare several companies’ offerings at once to help them find the best fit for their budget and insurance needs.
American Family is the nation’s ninth largest auto insurance provider, and it has active policies all over the country.
This company has a multitude of insurance products available, so if you’re in the market for home insurance or pet insurance in addition to an auto policy, AmFam might be the company for you.
Travelers is one of the most famous names in the insurance industry, and it is among the nation’s largest suppliers of auto and home insurance.
The company has a strong financial rating and offer discounts. Travelers is a good fit for those who are looking for a person-to-person sales experience.
What is Mandatory for Car Insurance in North Carolina?
In North Carolina, it’s the law to have a means of covering any costs of injuries or damages that may result from a car accident.
To comply with this state law, you must have a valid auto insurance policy.
The law in North Carolina also states that all drivers must have liability insurance.
The minimum required liability coverage limits in the state are as follows:
- $30,000 for bodily injury, per person per accident
- $60,000 for personal injury per accident
- $25,000 for property damage per accident
It’s also mandatory to have uninsured motorist coverage as it helps you to pay for your injuries if you’re in a collision with an uninsured driver.
It’s a criminal offense not to have liability insurance. Drivers without it may find themselves fined by the North Carolina DMV.
How to Reduce the Cost of Your Car Insurance in North Carolina
There are many ways to save money on your car insurance. Shopping around for the best price, adjusting your coverage amounts, or changing the way you drive can help you save a substantial amount of money.
- Increase your deductible: Opting for a higher deductible when setting up your policy can be an excellent way to reduce your premium. Generally, the higher your deductible, the lower your premium. Use an online comparison tool to see how much difference a lowered deductible could make to the price of your premium.
- Reduce your mileage: Cutting down on the miles you drive could help you save some money. If you can agree to a low annual mileage cap with an insurance provider, you might reduce your cost. If you own two cars, you might be able to lower your insurance premium on the vehicle that covers the least miles by agreeing to a maximum annual mileage on it.
- Bundling insurance: Bundling insurance is not only convenient, but it can also help you save money in the long run. Discounts for bundling can vary, but in some instances can range from 5 to 25 percent for each policy.
When you’re investigating insurance policies, have available the year, model, make, Vehicle Identification Number, and safety features installed on your car to help you get the most accurate quote from a provider.
Keeping personal details on-hand, such as your driving record, can also help you save money by providing insurance companies with the most accurate information possible.
What Can Increase the Cost of Your Car Insurance?
Aside from factors related to where you live, a few other variables may cause you to pay more for your car insurance in North Carolina.
Some can be easily changed, such as what car you drive, while others can’t be changed, such as your age.
- Driver’s Record: Even a minor violation can increase the cost of your premium. Some companies won’t raise your premium over a speeding ticket, but they may remove your good driver discount.
- Driver’s Age: Young drivers and the elderly are statistically more likely to be involved in an accident. As such, insurers may charge more for drivers in those age brackets than they would for drivers over 25 and under 80.
- The Car You Drive: If you drive a high-performance car or a car that is considered desirable, then your insurance premium may increase. By installing anti-theft devices, you may be able to reduce the price you pay.
Now that you know more about what influences the price of an auto insurance premium, and what steps you can take to save yourself some money, you should be well on your way to getting the cheapest car insurance in North Carolina.*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.