How Your North Carolina Auto Insurance Rate is Calculated

When a North Carolina auto insurance company is setting rates for its customers, it considers a number of factors. Each one uses its own formula for doing so, and rates can and do vary significantly between providers. Savvy car insurance buyers appreciate this fact and make a point of reviewing their coverage level and terms at least once a year to make sure that they are properly insured.

One of the factors that car insurance companies in North Carolina use to set rates for their customers is the applicant’s driving history. An insurance provider looks at past events as a strategy for predicting future behavior. Drivers who have already been involved in an at-fault accident are more likely to have other crashes, and they pay more for their coverage because of it.

The make and model of the vehicle being insured also helps to determine North Carolina auto insurance rates. Some vehicles cost more to insure because they are more likely to be targeted by thieves or are more expensive to repair. Customers who choose to drive a sports car, which is meant to go fast and is more likely to be involved in an accident, can expect to pay higher rates for their coverage.

Location is another factor that matters to NC auto insurance companies. They track the number of claims being made by policyholders by zip code. Vehicle owners who garage their car in one of these areas will pay more for their insurance coverage.