Average North Carolina car insurance rates are $734.06. It’s the 6th least expensive state in terms of premiums.
Despite these lower rates, many drivers still struggle to make payments. Approximately 7.4% of drivers in North Carolina are uninsured.
An insufficient personal auto insurance policy is a safety risk and comes with legal penalties. If you’ve been questioning whether or not you can afford insurance, read on for tips on how to reduce your rates.
North Carolina Auto Insurance Requirements
The minimum North Carolina auto insurance requirements include:
- $30,000 of bodily injury coverage per person
- $25,000 of property damage coverage
- Uninsured and underinsured motorist coverage
Penalties for failing to meet these requirements include:
- $50 for your 1st lapse
- $100 for your 2nd lapse
- $150 for any subsequent lapses
- A $50 restoration fee to have your license reinstated
The law requires you to maintain auto insurance with personal injury protection and several other types of coverage. Knowing what you need to pay for is the best way to ensure you don’t go overboard while staying within legal limits.
What Affects Your Rates
Several factors affect your insurance rates, such as your credit score, driving history, location, age, gender, what type of car your drive, and where you live.
Your credit score is an important factor; the lower it is, the higher your premiums will be.
Rates are always higher for any drivers under the age of 25. Being married tends to lower your rates even after you get divorced or your spouse passes away.
When determining how your location affects your rates, insurance companies look at factors such as population and the number of insured drivers on the roads.
Sports cars tend to have larger claims and higher insurance rates. In general, how much you pay also depends on how much it costs on average to repair your car and the damage a collision would cause.
The way you obtain your car also affects your rates. Leased cars usually require forms of coverage such as gap insurance, collision coverage, and comprehensive coverage.
How to Lower Your Rates
Insurance companies use more than one factor to determine your rates, and you should use more than one method to reduce them. Take advantage of every possible method to save money.
A few of the ways that you can lower rates include getting quotes from as many providers as possible, maintaining a positive driving record and credit score, getting the right policy, choosing a car that’s affordable to insure, and setting up the right payment schedule.
To compare car insurance rates, look further than national and statewide providers by getting quotes from small local providers. Use comparison sites to see all of your options at once.
You can use these quotes as a form of leverage when negotiating with your current personal auto insurance provider. They’ll be more likely to lower your rates when you show them a better offer from another company and hint that you’re considering leaving them.
Maintain a Positive Driving Record and Credit Score
A single point on your driving record will cause your North Carolina car insurance rates to increase by 30%. Reaching the maximum of 12 points leads to a 340% increase.
You must also work to improve your credit score by making regular payments to get the lowest possible car insurance rates.
Get the Right Amount of Coverage
Paying for more insurance than you need is a surefire way to get excessively high rates. Compare the value of your car to your deductible, and if what you’re paying is significantly more than what your car is worth.
You may have to drop certain forms of coverage. If your car is worth less than 10 times the premium you’re paying, drop comprehensive or collision coverage. If you don’t often need roadside assistance or use rental cars, these forms of coverage are unnecessary.
Choose the Right Car
Consider how easy your car is to repair as well as how prone it is to theft and damage. Insurance companies may be able to tell you the average premiums for a specific vehicle before you buy it. If it’s too expensive, consider another.
Raise Your Deductible
The lower your deductible, the higher your insurance premium will be. Raising your deductible by as little as $500 can save you 15-40%.
You’ll pay less if you drive less, and inserting a device to track your mileage on your vehicle can save you $50-$100. If you need to reduce your daily mileage, find a shorter commute or use public transportation to get to work.
Bundle Your Policies
Get your car insurance and homeowner’s insurance policy from the same company. It saves time, and bundling them together is a great way to save money.
Set Up Automatic Payments
Setting up an automatic debit ensures your insurance company gets paid every month. Other fast payment methods like auto-pay accounts help as well.
Most insurance companies will reduce your rates if you choose these methods. The same is true of switching to yearly instead of monthly payments.
There are several discounts you can get for being a good student, never getting a ticket, having low mileage on your car, and taking defensive driving courses. Teachers, engineers, scientists, and other professions can get discounts as well.
Your car may be able to win you discounts as well. If you have a hybrid car, quick response breaks, or anti-theft features, you could be eligible for major savings.
Where to Get the Best North Carolina Car Insurance Rates
North Carolina car insurance rates are determined by your likelihood of getting into an accident and how much repairs would cost. This is affected by your age, car, location, and more.
The best way to get low rates is to get quotes from as many insurance providers as possible. Find out what the premiums for your car will be and if they offer any special discounts, bundles, or automatic payment methods.
Amistad Insurance Services offers fair rates for protecting your most important assets. Get a quote today to see what type of North Carolina car insurance rates we offer.