North Carolina Car Insurance Rates To Rise By 9% Over The Next Two Years
Up until recently, North Carolina motorists had a significant advantage over the rest of the country: they paid less than the national average for their auto insurance. This can be a big deal for families and individuals struggling to make ends meet in the face of rising inflation and higher cost of living — but it seems all good things must come to an end.
The North Carolina Rate Bureau has proposed an increase in the state’s auto insurance premiums. At first, the increase was set at a whopping 28% — a figure that could render auto insurance out of reach for many North Carolina residents. That number has since come down, thanks to negotiations — it’s now at a 9% hike spread over the next two years (4.5% a year), which is still anything but good news for people trying to keep their cars insured.
So what’s caused this rate hike, and what (if anything) can be done to mitigate it?
How North Carolina Compares to the National Average
First, let’s take a look at how North Carolina stacks up compared to the rest of the nation. In terms of auto insurance, the state has been nothing short of a haven for motorists: as Ross Martin at insurance comparison site The Zebra points out, the average North Carolina driver pays $1,067 per year for car insurance — 30% less than the U.S. average. This figure can vary according to factors like zip code, choice of vehicle, and driving record, but the essential point remains the same: North Carolina has historically been on the low side of the scale when it comes to car insurance.
Even with the proposed rate hike of 9%, cheap North Carolina car insurance is still a reality — but that won’t be the last rate hike to come out of the Tar Heel State.
Why the Increase?
So why exactly is this happening, and why now?
For one thing, it’s important to remember that auto insurance rates tend to fluctuate over time. Economic conditions, regulatory changes, driving trends, and other factors can noticeably affect auto insurance premiums nationwide.
In fact, the country’s recent struggle with inflation is a major part of higher insurance costs in North Carolina — nearly everything costs more when inflation increases, including the cost of maintaining and repairing motor vehicles. Insurance companies have to pay out for parts and labor and, to remain solvent, must pass those expenses on to customers in one way or another.
There’s also an increase in distracted driving incidents, not just in North Carolina but across the US. The increased use of smartphones, tablets, HUDs, GPS devices, and other digital distractions have led to more accidents on the road — which means big payouts from insurance companies and premium hikes to compensate.
Tips On Keeping Your Insurance Premiums Down
With the economy not in the best shape and costs rising everywhere, drivers are looking for any way they can to bring their insurance premiums down. Here are a few time-honored strategies you can deploy to hopefully pay less for your auto insurance:
Comparison shopping. You don’t have to stick with your current insurance company just because you’re used to it. There are plenty of free digital tools out there to compare your options and get free quotes. With a little homework, you might get better coverage for less money!
Keep Your Driving Record Clean. While factors like age, choice of vehicle, and even credit rating can make a difference in how insurers assess the risk of insuring you, your driving record is by far the most important. A history of accidents or violations will drive your premiums up significantly; a DUI could double or triple those same premiums. Driving safely makes both personal and economic sense.
Take a Defensive Driving Course. Completing a defensive driving course will not only make you a safer driver but is also highly likely to earn you a discount with your current insurer.
Find Other Discounts. Speaking of discounts — you might be shocked at how many the average auto insurance company has available (it’s often around fifty). There are discounts for certain occupations (health care workers, first responders, teachers), good student discounts, discounts for installing safety or anti-theft equipment on your vehicle, and many more. Talk to your insurance company and see what you’re eligible for.
Change Your Policy. If you can afford to pay a little more out of pocket, consider raising your deductible. It will cost you more if you get in an accident, but your monthly premiums will be lower in the meantime. You might also consider lowering your coverage to collision or liability only, especially if your vehicle is older and worth less on the market.
As time goes by, prices go up — it’s just an unfortunate fact of life. But with a little research and legwork, you can curb your North Carolina Car insurance rates and maybe even put a little money away.
