North Carolina enjoys below national average car insurance premiums due to its driver-friendly insurance regulations. Yet the differences between the top quotes in surveys and the cheapest quotes can still differ by as much as double the price. Auto insurance premium calculations are different for every company and every driver. Learn how to position yourself for cheap auto insurance and how to look for it.
North Carolina’s Insurance Environment
Different states have different auto insurance laws and regulations. In North Carolina, drivers are required to carry liability and uninsured and underinsured coverages. Liability coverage, although a little low in their coverage, offer injury and wage protection to those that you harm when the accident is also your fault. Also required are Underinsured and Uninsured coverages in the same amount as liability coverage. The policy amounts required are $30,000 bodily injury coverage per person, $60,000 bodily injury coverage per accident and $25,000 property damage coverage. These amounts are typically referred to as 30/60/25. Most auto insurance experts agree however that these minimums would likely not cover your costs if involved in a moderate injury accident that was your fault.
Raleigh, NC and the entire state is a contributory negligence comparative at fault state for accidents. This regulation prohibits any driver found to be at fault, no matter how little, from collecting any expenses as a result of court settlements. Insurance claim adjusters typically follow the same guidelines. If you were hit by another driver, but were speeding and it can be proven that speed was a contributing factor, you would not be eligible for recovery of expenses. This prohibitive and often unfair law does have a positive effect of keeping legal cases for auto accidents only to extreme cases and keeps insurance costs lower.
Other reasons why insurance is cheaper in Raleigh, NC includes the state’s lower than average drunk driving fatalities, teenage drunk driving statistics, and auto theft rates. The state’s drunk driving fatalities have historically been below national averages, until 2012 when they matched the national average. Teenage drunk driving is well under the national average at 7.7% compared to 10.1% of teens nationwide. Vehicle theft is a full 60 points below the national average as well. All these facts contribute to the lower rates in Raleigh.
Ensuring You are Covered
If you live in Raleigh, NC, ensuring you have full coverage is the best way to ensure you never run afoul of the contributory negligence rule. Full coverage that includes comprehensive, collision, and medical payments coverage in addition to liability and Unisured/Underinsured policies ensures that you are covered under most accident instances.
In the example above, under full coverage, your auto insurance would still cover your own expenses for medical payments as well as property damage, even if 99% of the fault was found to be another driver. With below average national auto insurance rates, full coverage can be affordable.
The Cheapest Auto Insurance in Raleigh, NC
Raleigh is the state capital and is the second most populous city in North Carolina, after Charlotte, yet it is still under the state average for auto insurance costs. Part of the reason is the well-covered public transit system with three different bus operators in the City that help keep congestion in the city down.
Who is the Cheapest in Raleigh?
If you were to look for the cheapest auto insurance in Raleigh, North Carolina, you would be surprised to find out that there is more than a $300 annual difference in premiums between the cheapest and the most expensive insurers. The three cheapest auto insurers in Raleigh according to ValuePenguin is GEICO at $438, Auto-Owners at $480 and Titan at $546. These three quotes were based on a 30 and 65 year old males that owned a 2010 Camry, owned outright, whom drove 12,000 miles a year and had no traffic violations in the last five years.
Your situation is most likely different and as such, you should get between 5 to 10 quotes to take into account different insurers algorithms that benefit or penalize different aspects of your own situation.
Average Cheapest Insurer in North Carolina
You might also consider the top five cheapest insurers in the state, not including previously mentioned insurers including NC Farm Bureau at $597, Allied at $630, Erie at $638, State Farm at $644 and Encompass at $693. All posted lower than state-wide average premiums except Encompass. If you want an insurer that is also highly rated by consumers, with the least amount of complaints you might also consider Fireman’s Fund, Cincinnati Insurance Company, Amica, Penn National Insurance, or Travelers insurance. These last companies however may not provide the cheapest rates.
Finding cheap insurance in Raleigh, North Carolina in comparison to state or national averages should be easy considering North Carolina is lower than the national average and Raleigh is considered cheaper than the state average for insurance premiums.