NC Car Insurance Rates
As of 2017, North Carolina auto insurance premiums were the 6th least expensive in the country according to the Insurance Information Institute with an average of about $705 per vehicle. That includes liability, comprehensive, and collision coverage. One of the primary items affecting car insurance rates is the population density in the area where the vehicle is kept, which is typically assumed to correlate to traffic density. More cars in tighter spaces equals more accidents and higher premiums, and rates can vary significantly between zip codes in the same state.
Of course, there are more generic market factors that affect the cost of car insurance claims and will also have an impact on premium. The parts for a given vehicle might cost the same no matter what state it is repaired in, but the labor cost will be relative to the cost of living and wages in a particular area. The cost and features of the car will also make a difference. Newer and more expensive vehicles often have more safety features, but are more expensive to repair. A rear ending that deploys the airbag at 20-30MPH is likely to protect the passengers from serious injury…but the repairs might be more complicated- or it might be totaled more quickly.
Impact of Covid on Car Insurance Rates
Lastly, COVID has seriously complicated the data for car insurance rates. At first glance, the obvious observation is that people are driving less because of quarantines and lockdowns. However, there has also been an increasing trend of higher severity in auto accidents. Fewer accidents- but larger claims. As the picture becomes more clear, there may be some shifts in car insurance rates that are likely to vary greatly between cities, states and urban vs rural areas.
Your local independent agent is in an ideal position to help you navigate these various factors and find the combination of coverage that best suits you and your family. If you’re in the Charlotte or Lake Norman area, the agents at Piedmont Insurance would be a good place to start!