Image via Flickr by Ben Templesmith
When buying affordable insurance is on the agenda, shopping around to get quotes from various insurance companies should be your top priority. If you want to purchase cheap car insurance Raleigh, North Carolina, it helps to understand the many factors insurance companies used to determine their policy pricing.
What Type of Insurance Is Required in Raleigh, North Carolina?
According to the North Carolina Department of Motor Vehicles, all vehicles that are legally registered in North Carolina must have liability insurance at all times per state law (G.S. 20-309). To clarify, this means throughout the time the vehicle(s) are registered in North Carolina, insurance must be maintained, and the coverage can only be through a company that is licensed to sell insurance in the state. For residents moving to North Carolina, insurance must be retained from a state-licensed company. Out-of-state insurance policies will not be accepted.
What Is Liability Insurance and What Is the Required Minimum Coverage?
Liability insurance is the level of coverage that provides protection against property damage and injuries in the event of an incident caused by another driver. It is designed to cover a driver and their family from those who may be driving with no liability insurance at all or who have minimum or limited coverage.
Minimum coverage requirements in North Carolina also include uninsured and underinsured motorists, bodily injury, and property damage. Minimum coverage requirements per the state’s Department of Transportation (DOT) break down as follows:
- $30,000 – bodily injury (coverage for one person)
- $60,000 – bodily injury (coverage for two or more)
- $25,000 – property damage
What Is the Estimated Cost for Car Insurance in North Carolina?
Based on rate data analysis completed by CarInsurance.com, the estimated cost for the minimum coverage required by the state is $448. The estimated cost for collision coverage costs $593, and the estimated cost for comprehensive coverage is $157. Rate analysis also notes drivers may save as much as $1,231 annually for full coverage if drivers request quotes from a variety of insurance companies and then compare the different prices and choose the most affordable.
While drivers aren’t required to have comprehensive and collision insurance, both offer protection in certain conditions, such as coverage for a newer model vehicle. Comprehensive insurance covers damage a vehicle incurs due to vandalism, and weather conditions, such as fire, hail, and floods. It also covers the replacement of vehicles that are stolen. Collision insurance covers the cost of damage to the vehicle resulting from an accident.
For cheap car insurance companies in Raleigh, North Carolina, the following list compiled by CarInsurance.com’s rate analysis is based on a specific profile, which includes a driver aged 30 with a clean driving record and good credit:
- Nationwide Insurance Company
- Erie Insurance
- NC Farm Bureau Mutual Insurance Company
- State Farm
- Integon National Insurance Company
- Kemper Independence Insurance Company
- Government Employees Insurance Company
- Metropolitan P&C Insurance Company
- Progressive Premier Insurance Company
- Allstate P&C Insurance Company
Cheapest Car Insurance for Full Coverage
When choosing full coverage versus having just the minimum coverage required by the state know that it will be more expensive because it provides protection in more incidents. According to WalletHub, GEICO, State Farm, Erie, NC Farm Bureau, and Auto Owners have the least expensive insurance for full coverage. The breakdown shows that GEICO is the cheapest at $853 annually and Auto Owners is the more expensive at $1,212 annually.
What Can Affect Car Insurance Rates?
Several factors can affect insurance rates. These include:
- Drivers with good records
- Drivers with speeding tickets
- At-fault accident
- Not-at-fault accident
- Credit rating
- Age (young or older)
- Marital status
- Coverage level
- Location/zip code
- Driving under the influence
- Reckless driving
- Red light infraction
- Open container
- Suspended license
Which Companies Have the Cheapest Insurance?
Each insurance company has its own criteria in place that sets the policy price. This is why it is beneficial to research and compare rates with different insurers. According to WalletHub, the following companies offer the cheapest car insurance annually in North Carolina.
- $500 – GEICO
- $527 – NC Farm Bureau
- $539 – Erie
- $561 – State Farm
- $588 – Auto Owners
Information from The Zebra states the zip codes in Raleigh with the cheapest insurance rates are 27529, 27601, 27634, 27635, and 27640. The site also notes the most expensive Raleigh zip codes include 27695, 27616, 27615, 27612, and 27609
Cheap Car Insurance for Good Drivers in North Carolina
For those with good driving records, which means no accidents or citations, there is a considerable difference in the cost of cheap insurance, according to WalletHub. The estimated price for the cheapest insurance is as follows.
- $285 – GEICO
- $361 – Erie
- $366 – NC Farm Bureau
- $368 – State Farm
- $384 – Auto Owners
Are There Any Penalties for Driving Without Proper Insurance?
Like other states, driving without insurance is never a good idea as it can result in negative and costly situations. In Raleigh, a driver without facing their first offense for lack of insurance is subject to a monetary civil penalty and a fee to reinstate their license according to Freeway Insurance. The fee for both is generally $50. For a second offense, the penalty fee increases to $100 for the civil penalty but remains at $50 for license reinstatement. A third offense keeps the $50 reinstatement fee of the license but increases the civil penalty cost to $150.
With each offense, the registration for the vehicle is suspended for 30 days. Drivers must show proof of insurance in order for the registration to be removed from suspension. There is also the possibility of going to jail or being place on probation for a period of between one to 45 days for offenses.
Buying Cheap Car Insurance in Raleigh, North Carolina
Whenever it’s time to buy car insurance, whether you are protecting a new or used vehicle, purchasing insurance for the first time, or covering a teen driver, keep in mind that rates vary from company to company. To find the cheapest insurance in your area, researching different companies and comparing their rates is the first step in finding affordable insurance.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
