You have probably seen the captivating commercials from companies like The General and Farmers that promise dirt cheap rates. So you just need to pick the company with the best ad, right?
It’s just not that easy, however, as there are a ton of unknown elements like when you were born, if full coverage is needed, your financial responsibility, and the likelihood of vehicle theft where you live. We will try to cover these types of topics and will hopefully give you a good beginning to your quest for cheaper car insurance.
One of the many criteria that aid in calculating the amount you pay each year for auto insurance is where you choose to live. Cities with larger populations tend to pay slightly more, whereas areas that tend to be more rural have the benefit of cheaper car insurance.
The information below lists the most costly cities in North Carolina for a learners permit to buy an auto insurance policy in. Charlotte is ranked at #3 with an annual cost of $808 on average, which is around $67 per month.
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Premium amounts are estimated as vehicle location can lower or raise auto insurance rates considerably.
Determining which company quotes the cheapest car insurance rates for a learners permit requires a bit more work in order to find the lowest price quote.
Every insurance company uses their own formula to set policy rates, so let’s look at the rankings for the car insurance companies with the overall best prices in North Carolina. It’s important to know that North Carolina car insurance rates are impacted by many factors that will increase or decrease the price you pay for coverage. Simply improving your credit, increasing deductibles, or getting a ticket for running a stop sign can trigger rate changes that can make some companies cheaper than competitors.
Best Cheap Insurance Rates in North Carolina
|Rank||Company||Cost Per Year|
|7||NC Farm Bureau||$737|
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Progressive quotes some of the most affordable car insurance rates in Charlotte at around $651 a year. This is $221 less than the average price paid by North Carolina drivers of $872. Utica National, Penn National, Liberty Mutual, and GEICO also make the cut as some of the more affordable Charlotte, NC insurance companies.
As shown in the table above, if you buy coverage from Penn National and switched to Progressive, you might realize yearly savings of in the neighborhood of $66. Policyholders with Liberty Mutual could save as much as $77 a year, and GEICO policyholders might cut rates by $77 a year.
To find out how much you can save, click here to start a quote or quote prices from the following companies.
These estimates are averages across all types of drivers and the different vehicles they drive and are not factoring in a specific zip code for a learners permit. So the insurer that is best for you may not even be in the top 20 companies shown above. That is why you need to compare as many prices as possible using your own driver and vehicle profiles.
Price comparison of only insuring for liability
Finding cheaper car insurance is probably important to most drivers, and one good way to buy cheaper insurance for a learners permit is to not pay for full coverage. The diagram below shows the difference between insurance rates with full physical damage coverage compared to only buying liability only. The premiums are based on no violations or claims, $500 deductibles, drivers are not married, and no discounts are taken into consideration.
If averaged out across all ages, physical damage coverage on your policy costs an extra $1,181 per year over and above liability only. That is a large expense and it proposes the question if buying full coverage is worth the money. There is no definitive formula that is best for determining when to drop full coverage, but there is a guideline you can consider. If the annual cost of comprehensive and collision coverage is more than about 10% of the settlement you would receive from your company, then it might be time to consider dropping full coverage.
For example, let’s assume your vehicle’s replacement value is $5,000 and you have $1,000 physical damage deductibles. If your vehicle is severely damaged, you would only receive $4,000 after paying your policy deductible. If you are paying in excess of $400 a year for your policy with full coverage, then it’s probably a good time to buy liability coverage only.
There are a few situations where buying only liability insurance is not recommended. If you haven’t paid off your loan, you have to carry full coverage as part of the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should not opt for liability only.
Poor driving habits will raise your car insurance rates
The easiest method to snag low car insurance prices in North Carolina for new drivers is to be a good driver and avoid at-fault accidents and violations. The diagram below illustrates how violations and at-fault collisions impact insurance costs for each age group. The data assumes a single male driver, full physical damage coverage, $500 deductibles, and no discounts are taken into consideration.
The data above shows the average cost of auto insurance in North Carolina per year with a clean driving record and no accidents is $1,181. Receive two speeding tickets and the average cost swells to $1,557, an increase of $376 each year. Now add one accident along with the two speeding tickets and the annual cost of car insurance for a learners permit increases to an average of $1,934. That’s an increase of $754, or $63 per month, just for being a careless driver!
Ending up with a good quality insurer is difficult considering how many choices drivers have in North Carolina. The rank data shown below may help you choose which auto insurers you want to consider when shopping car insurance rates for a learners permit.
The rankings below only include the largest companies in America, so companies that focus mainly on North Carolina business are not included in the list. If you’d like to compare prices from these top insurers and more, click this link.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
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Data Source: Insure.com Best Car Insurance Companies