The words “economical” and “insurance” really should not be used together, specifically when looking for the cheapest coverage for first-time drivers. To save some money, let’s start off by going over a few of the factors that have an impact on car insurance premiums, and figure out some ideas to take the sting out of your next policy.
For new drivers, one of the big components that determine car insurance rates is where you keep your car in Durham. Regions with more people or even just more weather-related claims tend to have more expensive auto insurance rates, whereas areas with less congestion have the enjoyment of a little cheaper coverage.
The table below lists the most expensive areas in North Carolina for first-time drivers to purchase auto insurance in. Durham is ranked at #5 with an annual cost of $797 for the average insurance policy, which is about $66 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Jacksonville | $900 |
| 2 | Fayetteville | $896 |
| 3 | Charlotte | $832 |
| 4 | Gastonia | $803 |
| 5 | Durham | $797 |
| 6 | Greensboro | $786 |
| 7 | Raleigh | $767 |
| 8 | Wilmington | $765 |
| 9 | Cary | $765 |
| 10 | Greenville | $760 |
| 11 | Indian Trail | $753 |
| 12 | High Point | $745 |
| 13 | Goldsboro | $743 |
| 14 | Huntersville | $742 |
| 15 | Rocky Mount | $740 |
| 16 | Apex | $739 |
| 17 | Wilson | $724 |
| 18 | Hickory | $718 |
| 19 | Salisbury | $712 |
| 20 | Winston Salem | $709 |
| Compare Rates Now Go | ||
Information shown are comparative as specific Durham zip code can modify prices considerably.
Finding good, cost effective auto insurance is tough enough, and deciding which companies offer the lowest-priced auto insurance rates for first-time drivers will require additional perseverance. Each auto insurance company has their own process to determine premium rates, so we’ll take a look at the most competitive auto insurance companies in North Carolina.
We do need to point out that Durham auto insurance rates are influenced by many factors which can substantially decrease or increase the cost of a policy. Simply having a birthday, buying a higher-value vehicle, or having an accident can produce rate changes that can make some companies higher-priced than the competition.
Cheapest Insurance Rates for Inexperienced Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Progressive | $639 |
| 2 | Utica National | $643 |
| 3 | Liberty Mutual | $707 |
| 4 | NC Farm Bureau | $737 |
| 5 | Titan | $737 |
| 6 | GEICO | $742 |
| 7 | Penn National | $747 |
| 8 | State Farm | $779 |
| 9 | Auto-Owners | $844 |
| 10 | Allied | $901 |
| 11 | National General | $908 |
| 12 | Erie | $931 |
| 13 | Travelers | $936 |
| 14 | Peerless | $962 |
| 15 | Unitrin | $1,012 |
| 16 | MetLife | $1,018 |
| 17 | Nationwide | $1,031 |
| 18 | Allstate | $1,054 |
| 19 | Encompass | $1,073 |
| 20 | Safeco | $1,076 |
| Find Your Rate Go | ||
Progressive generally has some of the cheapest car insurance rates in Durham at around $639 per year. This is $233 less than the average policy premium paid by North Carolina drivers of $872. Utica National, Liberty Mutual, NC Farm Bureau, and Titan also qualify as some of the cheaper Durham, NC auto insurance companies.
As the rates illustrate above, if you currently have coverage with NC Farm Bureau and switched to Utica National, you may realize yearly savings of approximately $94. Drivers with Titan might save as much as $94 a year, and GEICO customers might lower prices by $99 a year.
To compare your rates to other North Carolina insurance companies, click here to get quotes or click through to the companies below.
It’s important to note that these prices are averages for all types of drivers and the different vehicles they drive and and are not figured with an exact vehicle garaging location for first-time drivers. So the car insurance company that has the lowest price for you may not even be in the top 20 companies in the list above. That affirms the importance of why you need to compare rates from as many companies as possible using your own individual information.
The make and model of vehicle on the policy is probably the largest consideration when shopping for economical insurance for first-time drivers. Vehicles with limited top-end speed, good safety features, or a track record of few liability claims will cost substantially less to insure than adrenaline junky models. The next table showcases insurance premiums for the cheapest vehicles to buy coverage for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX-P 4-Dr Sedan | $4,134 |
| Ford Escape XLT 4WD | $4,173 |
| Honda CR-V EX-L 2WD | $4,182 |
| Toyota Prius | $4,463 |
| Dodge Grand Caravan CV | $4,652 |
| Jeep Grand Cherokee Laredo 2WD | $4,905 |
| Chevrolet Malibu LS | $4,914 |
| Toyota RAV4 Limited 2WD | $4,905 |
| Nissan Altima 2.5 4-Dr Sedan | $4,910 |
| Chevrolet Equinox LS AWD | $4,905 |
| Volkswagen Jetta LE 4-Dr Sedan | $4,911 |
| Chevrolet Silverado LT Extended Cab 4WD | $4,905 |
| Toyota Tacoma Double Cab 4WD | $4,942 |
| Ford Explorer Limited 4WD | $4,952 |
| Hyundai Elantra Blue 4-Dr Sedan | $5,115 |
| Ford Edge Sport 2WD | $5,155 |
| Chevrolet Impala LTZ | $5,163 |
| Toyota Corolla XLE | $5,155 |
| Honda Odyssey EX-L W/Rear Entertainment | $5,160 |
| Ford F-150 Lariat Crew Cab Platinum 2WD | $5,192 |
| Start Your Quote Go | |
Data based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and North Carolina minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in the specific area where the vehicle is garaged which can raise or lower insurance rates noticeably.
Based upon the table data, we can assume that makes and models like the Honda Accord, Ford Escape, and Honda CR-V are likely to be a few of the less-costly vehicles to insure for new drivers. The cost of auto insurance will be more costly because there is more claim exposure for first-time drivers, but generally speaking those specific models will have the lowest prices compared to other vehicles.
Impact of citations and accidents on insurance rates
The ideal way to receive the most affordable auto insurance premiums in Durham for new drivers is to drive safely and avoid at-fault accidents and violations. The diagram below demonstrates how speeding tickets and at-fault claims can affect auto insurance costs for different age categories. The price estimates are based on a single male driver, full coverage, $500 deductibles, and no discounts are applied.
The data in the chart shows the average cost of car insurance in Durham per year with no accidents or violations is $1,573. Factor in two speeding tickets and the average cost swells to $2,077, an increase of $504 each year. Then throw in two accidents along with the two speeding tickets and the 12-month cost of auto insurance for first-time drivers jumps again to an average of $4,060. That’s an increase of $2,487, or $207 per month, just for not maintaining a clean driving record!
Full coverage versus liability-only
Paying less for auto insurance is probably important to most people, and one of the fastest ways to find cheap insurance for first-time drivers is to not buy comprehensive and collision coverage. The chart below illustrates the comparison of insurance prices with full physical damage coverage compared to only buying liability only. Data assumes no violations or accidents, $1,000 deductibles, single marital status, and no other discounts are factored in.
Averaged out for all age groups, full coverage costs an extra $1,053 per year more than just insuring for liability. That may make you wonder when is it a good idea to stop buying full coverage. There is no definitive guideline for excluding physical damage insurance, but there is a general school of thought. If the annual cost of coverage is about 10% or more of the settlement you would receive from your company, the it may be a good time to stop paying for full coverage.
For example, let’s say your vehicle’s settlement value is $5,500 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, the most your company will settle for is $4,500 after the deductible is paid. If you are currently paying more than $450 a year for your policy with full coverage, then it could be time to drop full coverage.
There are some cases where eliminating full coverage is not financially feasible. If you haven’t paid off your loan, you must maintain physical damage coverage as part of the loan conditions. Also, if you can’t afford to buy a different vehicle in the event your current vehicle is totaled, you should maintain full coverage.
How to find low-cost car insurance for first-time drivers
It’s not impossible to find cheaper rates, and here are some penny-pinching ideas that can help Durham drivers buy cheaper coverage.
- Safer vehicles generally have cheaper insurance rates
- Remove physical damage coverage on older vehicles
- Improve your credit rating
- Buy your homeowners policy from the same company as your auto insurance
- Prevent rate increases by staying accident-free
- Comparison shop frequently
The last suggestion is certainly vital, as was discussed in the prior information. Car insurance rates can change considerably based on profitability, so don’t be afraid to buy a different policy if a lower-cost policy is available. Many drivers prefer to stick with one company, but it’s not recommended if that loyalty ends up costing money that could be spent on other things. If you have a few minutes, now is a great time to compare rates to find cheaper auto insurance for first-time drivers in Durham.
If you have questions and prefer to have a professional recommendation when buying car insurance for first-time drivers, the agents listed below can aid you in deciding which auto insurance policy fits you best.
To find a Durham insurance agency near you, click the button at the bottom.
- Allstate Insurance Agent: Ava Brownlee
14 Consultant Pl Ste 150 – Durham, NC 27707 – (919) 490-6667 - Nationwide Insurance: M A Mansour
1209 University Dr – Durham, NC 27705 – (919) 797-0135 - Allstate Insurance Agent: Michelle Riley
6015 Fayetteville Rd Ste 115 – Durham, NC 27713 – (919) 544-2155 - Farm Bureau Insurance
4021 Stirrup Creek Dr #220a – Durham, NC 27703 – (919) 469-3191 - Chuck Barham State Farm®
3823 Guess Rd – Durham, NC 27705 – (919) 477-7300