How to Find the Most Affordable Car Insurance in North Carolina

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Lucy Lazarony
July 21, 2020

In North Carolina, the average car insurance premium is $865 per year, which is 39 percent lower than the national average. The people of North Carolina know all about affordable car insurance; theirs is among the lowest in the country. But there are ways to make a low rate even lower. There are tips and strategies for lowering car insurance rates and we’ll get to those after we take a closer look at car insurance in North Carolina.

State Minimum Liability Requirements

If you ever cause a car accident, liability insurance pays for other people’s injuries and property damage up to your liability limit. Each state has minimum liability requirements for the drivers in their state.

In North Carolina, the minimum liability requirements are $30,000 bodily injury liability coverage per person, $60,000 bodily injury liability coverage per accident and $25,000 property damage liability coverage per accident.

Minimum liability coverage costs an average of $428 per year.

Uninsured Motorist Coverage

Uninsured motorist coverage helps pay for damages caused by a driver who doesn’t have insurance.

North Carolina requires uninsured motorist coverage of its drivers. The minimum amount is $30,000 bodily injury per person, $60,000 bodily injury per accident and $25,000 property damage.

Why Is Car Insurance So Cheap in North Carolina?

North Carolina is a mostly rural state with less crime and fewer accidents and this drives insurance rates lower.

North Carolina also has an insurance commissioner who caps rates and this causes insurance companies to compete, offering discounts below the established cap. The intense competition among insurance companies helps to drive down insurance rates.

Cheapest and Most Expensive Cities

In North Carolina, the city with the cheapest car insurance is Asheville. The city with the most expensive car insurance is Fayetteville. Asheville is located in the Blue Ridge Mountains of western North Carolina. Fayetteville is best known as the home of Fort Bragg, a U.S. Army installation to the northwest of the city.

A More Comprehensive Policy Costs More

In North Carolina, a more comprehensive insurance policy with collision insurance and comprehensive insurance with $1,000 deductibles costs an average of $814.

Collision insurance is coverage that helps to repair or replace your car if it’s damaged in an accident with another vehicle or object such as a fence or a tree. Comprehensive insurance covers events that aren’t covered by collision coverage. These events include theft, fire, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane and a tornado.

If you have a loan on your car, your lender will require you carry both collision and comprehensive coverages.

A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Both collision insurance and comprehensive insurance require deductibles.

Choosing a high deductible is one way to save money on your car insurance.

How to Save Money on Car Insurance

Ready for those tips and strategies on saving money on car insurance? Here they are.

Be a safe driver. If you are a safe and responsible driver and you follow the rules of the road you will save money on car insurance. North Carolina drivers without a recent speeding ticket save 32 percent on their auto insurance premiums. But break a few rules and things get expensive. In North Carolina, auto insurance premiums increase 48 percent after a DUI, 33 percent after an at-fault accident and 32 percent after a speeding ticket. What does that mean in dollars and cents? A driver’s first, minor, at-fault accident will increase premiums by around $312 annually. A DUI will increase yearly premiums by about $792. So stay safe and follow the rules of the road. If you’ve been a safe and responsible driver be sure to reach out to your insurance company for a good driver discount. You’ve earned it.

Be a married driver. If you are married, you will pay less for car insurance. There is a correlation between married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles. In North Carolina the difference isn’t much. In North Carolina, married drivers save about $7 per year on their auto insurance.

Boost your credit score. Insurance companies have been using consumer credit data to assign risk pools and set insurance rates since the mid-1990s. Drivers with good and excellent credit pay less for car insurance than drivers with no and bad credit. The difference isn’t all that much in North Carolina. In North Carolina, drivers with excellent credit can save around $171 on car insurance compared with a driver with bad credit. Boosting your credit score will still help you save a bit of money on your car insurance. So get all past due accounts current, pay down debt and avoid taking on new debt. Get in the habit of paying your credit bills on-time. This will help you build up a good payment history, which is good for your credit score.

Insure more than one car. Insure more than one car with the same insurance company and you’ll save money. Ask for the multi-car discount when you call.

Try bundling. Bundle your auto insurance policy with another insurance policy such as a homeowners policy and you’ll save money on your premiums.

Pay less often. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Spend less on older cars. The maximum payout for collision insurance and comprehensive insurance is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision coverage and comprehensive coverage any longer.

Check anti-theft features.Having certain anti-theft and safety features on your car will lower your car insurance. Check to see if the features on your car warrant a discount.

Consider your memberships. That professional membership may be good for a car insurance discount. So check your professional memberships with your insurance company and see if you’re due a discou

nt.

Be a lady driver. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Cash in on discounts. The good driver discount already has been mentioned. Students and veterans have discounts as well. So be sure to reach out to your auto insurance company if you qualify.

Choose a high deductible. As mentioned earlier, choosing a high deductible is one way to lower your auto insurance premium. Just be sure to put the deductible amount in a small emergency fund. This way the money will be there should you need to make an auto insurance claim.

Check your age. Drivers who are younger than 25 and older than 65 have more serious accidents and pay more for car insurance. Drivers of the ages in-between pay less.

Stick with your coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your auto insurance coverage and save money.

Choose a safe neighborhood. If you live in a neighborhood with high accident claims and auto theft, you’re going to pay more for your car insurance. If you live in a neighborhood with low accident claims and low crime you are going to pay less. So choose a safe neighborhood and save money on your auto insurance premium.

Own your home. Statistics show that people who own homes drive more safely. So let your auto insurance company know that you own your home and enjoy the savings on your auto insurance premium.

Keep miles low. Are you a heavy commuter? You’ll pay more for your car insurance. To save money on your car insurance, drive fewer miles. Low-mileage drivers pay less for their car insurance.

Shop around. One of the best ways to save money on car insurance is to shop around. You’ll want to get insurance quotes from several different companies. SmartFinancial makes it easy to do. Just type in the type of insurance you are looking for and a zip code to get started. Next, answer a few quick questions and you’ll be comparing auto insurance rates in North Carolina in no time.

SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and price that you are looking for.

So shop smart for auto insurance and drive safely along the roadways of North Carolina.

Get a Free Auto Insurance Quote Online Now.

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