The price of car insurance is subjective. There are minimums that every driver must maintain depending on their state. However, what you pay to carry those minimum requirements depends on you, as the driver. That being said, each insurance company may choose where to raise prices and where not to raise prices. All of these factors will help determine your premiums for the year. The key is to make sure you have adequate coverage for your needs while keeping money in your wallet.

 

Minimum Coverage Requirements in North Carolina

 

As stated above, North Carolina, as with most states, have laws governing the minimum coverage requirements for car insurance. Anyone who owns their vehicle outright, with no payments on a loan, must at least, have these coverages. They include:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $25,000 property damage liability per accident
• $30,000 Uninsured Motorist Bodily Injury per person
• $60,000 Uninsured Motorist Bodily Injury per accident
• $25,000 Uninsured Motorist Property Damage per accident

This type of coverage is known as liability coverage only. It only covers the driver’s liability to the other driver in the event of an accident. On average, a driver over age 25 with a clean driving record, will likely pay under $90 a month for this type of coverage. Every year, this driver may experience an increase in premiums. However, under the new insurance ordinance in North Carolina, that rate may only increase by 2.2% a year.

 

Increases in Premiums

 

Anyone who wants the standard minimum coverage and maintains a clean driving record will pay much less than others for insurance premiums. However, this payment is a rarity in the world of insurance. Most people have loan payments or lease their vehicles. As a result, they will require collision insurance coverage & OTC (other-than-collision) coverage, in addition to the above-mentioned liability insurance. Depending on the value of their own vehicle, their OTC insurance may cover more in property damage and theft and require much higher premiums.

 

Other factors that will increase car insurance premiums include:

 

• Negative driving history – Whether you have a small speeding ticket, an accident, a DWI or any other driving violations that lead to points on your driving record, your insurance rates are now affected. Depending on the company, each minor violation may be cause for an increase in your rates. However, some companies will allow for one ticket to be forgiven or even accident forgiveness. Do not be fooled: a premium is also assessed for that “benefit.”
• Age – Age plays a large role in determining your premiums. Teenagers are known to be less cautious behind the wheel. While your teenager may be an exception to the rule, the general rule shows that teenagers have a higher percentage of accidents than older, experienced drivers. Moreover, drivers that are over 25 years of age tend to be more cautious and less prone to accidents.
• Gender – It was once believed that males were a higher risk for insurance companies than females. However, that is not necessarily the case today. In North Carolina, many women are considered more at risk than male drivers.
• Negative Credit Records – Credit worthiness and responsibility go hand in hand in daily life. Therefore, many insurance companies will look at your credit worthiness to help determine whether you are responsible. Those with a higher credit score will see lower premium than those with negative credit accounts.
• Home address – Where you live can have a direct impact on your insurance premiums. If you live in a county or town that is known for thefts or hazardous driving conditions, you will pay a higher premium than those in other towns. Your home address may be a higher risk factor simply because of the statistics of your town.

These are just a few factors that may determine your annual premiums. The idea is for the insurance company to mitigate risks, leading its insured drivers to be better, more cautious drivers overall. If you are in need of a reliable insurance quote, contact our agents at Protective Agency Insurance at 877.739.9367.