Congratulations. You live in the state that has the lowest insurance rates in the nation. North Carolina wears this badge proudly through their control on how much carriers can charge their policy holders. However, this does not mean that all insurers in North Carolina are the same. You have many things to consider before choosing the company that will meet your auto insurance needs.

 

What Type of Insurance Is Required

North Carolina state law requires you to carry Minimum Coverage. You have to purchase a policy to cover damages and injuries in an accident where you are found to be at fault. The minimum coverage amount in North Carolina is $30,000 bodily injury liability per person involved in the accident, $60,000 total bodily injury per accident and $25,000 to cover property damages to the other vehicle.

 

The minimum amount of coverage will only apply to the other vehicle involved in the accident when you are found at fault. It will not pay for your injuries or damage to your car. In order to cover these, you will need to purchase OTC (other-than-collision) and/or Collision insurance.

 

You are also required to carry Uninsured Motorist coverage. This insurance helps protect you in the event of an accident that is caused by someone who does not carry any auto insurance. The minimum coverage levels for Uninsured Motorist insurance is identical to the body injury liability amounts.

 

Other options such as Towing/Labor and Car Rental are added features and will affect your premium.

 

What Factors Determine Your Rate

There are many factors that insurance companies use to determine your rate. How much you will pay will be set by how much risk you pose the insurance company. The more risk they have to assume to allow you drive, the higher your premium will be. The lower the risk you are, the lower price you will have to pay for your policy. Each company uses different formulas to determine risk. Shop around to find a price that is good for you. The Simple Dollar.com recommends at least five quotes from different companies.

 

Now let’s look at the factors:

The first thing that will determine your insurance rate will be your driving record. Accidents and moving violations accrue points. The more points you have against your license puts you more at risk.

The second factor that they use will be your age. The younger you are, the less experience you have behind the wheel. You pose a greater risk on the highway, so your premium will be higher.

 

Next is the type of vehicle you drive. If your car is on the high theft list or if you drive a car that has a low safety rating, then you are going to pay a higher rate.

 

Another factor is what ZIP code you live in. If where you keep your car is in a high theft area, or an area where more accidents are seen, then the insurance company places you at a higher risk.

 

A Few Things to Consider

The Simple Dollar.com’s article, “Car Insurance in North Carolina,” has ways to help lower your rate. They give you nine suggestions for you to consider. Here are just a few:

 

Ask about discounts. Your insurance company may have options for carrying multiple policies with them. Having renters’ or home owners’ insurance attached to your auto policy often help lower your rate overall. Also, most companies have discounted rates the longer you stay with the company.

 

Take a Driver’s Safety Course. The DMV offers them, at a cost, to drivers who desire to be safer on the road. In turn, they receive lower rates from their insurance carrier over those who haven’t taken any safety courses at all.

 

Finally, choose your next car wisely. Find a car that has a lower theft rate and a higher safety rating. These two factors will dramatically help lower your premium.