You’ve seen the commercials from auto insurance companies like Progressive, The General, and GEICO guaranteeing big savings. So drivers just need to pick the one with the best commercial, right?
It’s not that simple, unfortunately, as there are a whole bunch of unknown aspects such as the annual mileage you drive, whether or not you own a home, and when you were born, that all impact the cost of coverage. The content below covers the best ways to avoid paying too much and will hopefully give you a good beginning to your quest for cheaper car insurance in North Carolina.
For drivers age 25 and younger, one of the more important factors that aid in calculating the price you pay for insurance is the neighborhood you call home. Areas with increased crime or more people will most likely have higher rates, whereas areas with lower crime rates and fewer weather claims have the gratification of cheaper auto insurance rates.
The next table lists the most expensive places in North Carolina for drivers under 25 to purchase car insurance in. Durham comes in at #4 with a yearly cost of $789 on average, which is around $66 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Fayetteville | $905 |
| 2 | Jacksonville | $900 |
| 3 | Charlotte | $808 |
| 4 | Durham | $789 |
| 5 | Gastonia | $787 |
| 6 | Wilmington | $765 |
| 7 | Goldsboro | $765 |
| 8 | Raleigh | $760 |
| 9 | Greensboro | $756 |
| 10 | Cary | $749 |
| 11 | Wilson | $746 |
| 12 | Huntersville | $742 |
| 13 | Rocky Mount | $740 |
| 14 | Greenville | $738 |
| 15 | High Point | $731 |
| 16 | Indian Trail | $723 |
| 17 | Apex | $717 |
| 18 | Winston Salem | $716 |
| 19 | Salisbury | $712 |
| 20 | Hickory | $711 |
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Price information shown is comparative as zip code location can modify coverage rates noticeably.
Trying to buy low-priced auto insurance is challenging, and finding out which insurers offer the lowest-priced auto insurance rates for drivers under 25 will involve even more work. Each company has a unique formula to determine rates, so to begin we’ll rank the auto insurance companies that tend to have lower prices in Durham.
Cheap Insurance Rates for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Progressive | $651 |
| 2 | Utica National | $655 |
| 3 | Penn National | $717 |
| 4 | Liberty Mutual | $728 |
| 5 | NC Farm Bureau | $730 |
| 6 | Titan | $737 |
| 7 | State Farm | $749 |
| 8 | GEICO | $750 |
| 9 | Auto-Owners | $870 |
| 10 | Allied | $892 |
| 11 | Erie | $895 |
| 12 | National General | $917 |
| 13 | Travelers | $927 |
| 14 | Peerless | $992 |
| 15 | Nationwide | $1,031 |
| 16 | Safeco | $1,034 |
| 17 | Encompass | $1,041 |
| 18 | Unitrin | $1,042 |
| 19 | MetLife | $1,049 |
| 20 | Allstate | $1,054 |
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Progressive normally has some of the lowest car insurance rates in Durham at around $651 per year. This is $221 less than the average rate paid by North Carolina drivers of $872. Utica National, Penn National, Liberty Mutual, and NC Farm Bureau also qualify as some of the more affordable Durham, NC insurance companies.
In the rate table above, if you currently have coverage with Liberty Mutual and switched to Utica National, you might see yearly savings of about $73. Customers with NC Farm Bureau might save as much as $75 a year, and Titan customers might cut rates by $82 a year.
These estimates are averages across all insureds and vehicles and do not take into consideration an exact location for drivers under 25. So the insurer that fits your age and vehicle best may not even be in the top 20 companies in the list above. That helps illustrate why you need to get car insurance quotes using your own specific driver information and vehicle.
Do you need full coverage?
Buying cheaper auto insurance should be important to most people, and one good way to pay less for insurance for drivers under 25 is to buy only liability coverage. The example below illustrates the comparison of yearly insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The rate quotes are based on no accidents, no driving violations, $250 deductibles, single status, and no additional discounts are factored in.
Averaged out for all age groups, physical damage insurance costs an additional $1,316 per year over and above liability coverage. At some point, about every driver wonders if buying full coverage is a good investment. There is no set guideline that works best for making the decision to drop physical damage insurance, but there is a general convention. If the yearly cost of comp and collision coverage is 10% or more of replacement cost minus your deductible, then it could be time to drop full coverage.
There are some situations where removing full coverage is not a good plan. If you still have a loan on your vehicle, you must maintain physical damage coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is damaged, you should not consider dropping full coverage.
The information below highlights how deductible choice can influence premium costs when trying to find cheap insurance for drivers under 25. The rates are based on a single female driver, full physical damage coverage, and no other discounts are factored in.
A 30-year-old driver could lower rates by $268 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $406 by using a $1,000 deductible. Younger drivers, such as the 20-year-old chart data, could drop their prices $602 or even more by selecting a higher deductible.
When choosing a higher deductible, it is necessary to have emergency funds available to satisfy the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Are you paying too much for car insurance in Durham?
North Carolina auto insurance rates are impacted by many things that can increase the price you pay for coverage. Getting older, increasing deductibles, or having a fender bender may prompt premium changes that can cause some rates to be cheaper in comparison to the competition. In addition to those changes, car insurance companies file new rates every year to adjust for unexpected claims or profits. Significantly higher claims can result in more expensive premiums, while long-term profits can produce cheaper Durham car insurance rates.
As an example, the graph below shows the company with the cheapest car insurance in Durham, NC for a 40-year-old male driver with no prior claims, no tickets, and excellent credit. If we compare prices based on his current risk factors, Utica National quotes the lowest car insurance rates in Durham at $729 each year. This is $143 less than the average price paid by North Carolina drivers of $872. Progressive, Liberty Mutual, Penn National, and GEICO are the remainder of the most affordable Durham, NC auto insurance companies.
In the next rate comparison, we’ll give the driver in the first chart an at-fault accident, slightly worse credit, and a blemish on his driving record. Due to the fact that each insurance company uses their own formula for setting rates, comparing quotes may now result in a completely different list of companies as shown below.
State Farm now has the cheapest insurance rate in Durham, NC with Titan, Auto-Owners, Allied, and National General also having competitive pricing. This example proves why it is important to compare lots of rates to get the most affordable auto insurance quotes for drivers under 25.
Insurance rates are calculated by many things and change dramatically, so the most economical company when you last compared rates may now be priced much higher than other options.
The agents shown below can most likely aid you in deciding which insurance coverage you need, since lots of people like to get some help when comparing insurance rates for drivers age 25 and younger. It can be difficult to find the best coverage on your own, and getting advice from a licensed agent can bring peace of mind knowing you have sufficient protection if you have a claim.
To find an agent by location nearest to you, click the button at the bottom of the list.
- Knox Insurance Agency
200 Meredith Dr Suite 104 – Durham, NC 27713 – (919) 313-6411 - Nationwide Insurance: Craig Insurance Group Inc
6224 Fayetteville Rd #106a – Durham, NC 27713 – (919) 544-8484 - Allstate Insurance Agent: Reginald Wright
2310 S Miami Blvd Ste 131 – Durham, NC 27703 – (919) 484-2493 - Debbie Leonard – State Farm Insurance Agent
3702 Hillsborough Rd #2b – Durham, NC 27705 – (919) 383-3887