North Carolina’s insurance policies require that all drivers maintain a minimum liability policy on their vehicles. It is recommended that all vehicles registered in North Carolina be covered under collision and comprehensive policies, as well as uninsured motorist insurance.
To obtain auto insurance, you must apply and be accepted by an auto insurance company. It is wise to shop around, comparing car insurance quotes and coverage. When evaluating an insurance application, auto insurance companies utilize various criteria. These guidelines vary from company to company, but many are the same. The type of car insurance coverage you choose will affect your insurance rates. Most of your premium generally goes toward legally required liability insurance. However, other types of coverage may be reduced or eliminated in order to lower your rate. Higher deductibles can lower your premium. A deductible is the dollar amount you must pay before the insurance company pays your claim.
As in most states, in North Carolina the most important factor that affects rate is your driving record, which is based on motor vehicle records to ascertain how many tickets or accidents a driver has received. If you have been responsible for even one accident, the quotes will come in higher. Insurance claim history with other such companies may also be reviewed to determine how many claims were made and the amount of money paid for each. These records may be reviewed from three or more years back. The type of car you want to insure can also affect your rate. How old is your car? How much would it cost to replace or repair? If your car is expensive to repair or more likely to be stolen (based on statistics), your rate may be higher. Your location may be considered; more populated areas have higher incidences of accidents and theft. Your age and gender are factors; mature drivers generally pay less. If you are under 25 years old, your rates will be higher. You may receive an insurance discount, resulting in a lower rate. Most insurance companies will give discounts for a safe driving record, car safety features, anti-theft devices, electronic payments, payment in full, multiple cars or policies (such as house insurance), and for other reasons. Finally, the amount you drive can affect your rate. You may receive a discount for limiting the number of miles you drive (which reduces the likelihood of an accident).
In summary, the best thing you can do to keep your rates down is to keep your driving record clean: accident-free and no moving violations (parking tickets do not matter). If you do this for five years, it can shave up to ten percent off your North Carolina car insurance rates!
