For poor drivers, one of the largest components that aid in calculating the amount you pay for auto insurance is your address. Areas with more people or even just a higher incidence of claims tend to pay slightly more, whereas more rural areas have the benefit of cheaper car insurance.
The illustration below lists the highest-priced areas in North Carolina for low income drivers to purchase car insurance in. Raleigh is listed at #8 with an annual cost of $760 for the average insured, which is approximately $63 per month.
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Premium amounts are estimated as vehicle location can decrease or increase coverage rates substantially.
Comparing rates for affordable car insurance is not easy, and deciding which company has the best auto insurance rates for low income drivers will involve more quotes for comparison. Each auto insurance company has their own formula for setting prices, so we’ll take a look at the auto insurance companies with the overall best prices in Raleigh, NC.
Keep in mind that Raleigh, NC auto insurance rates are based on many factors which can substantially change the cost of having a policy. Improving your credit rating, buying a newer car, or getting a ticket for careless driving can trigger rate changes that may make certain companies more affordable than competitors.
Cheap Insurance Rates in North Carolina
Progressive offers some of the best car insurance rates in Raleigh at around $632 annually. This is $240 less than the average price paid by North Carolina drivers of $872. Utica National, Penn National, Liberty Mutual, and NC Farm Bureau also are some of the more affordable Raleigh, NC auto insurance companies.
In the rate table above, if you are insured with Utica National and switched to Progressive, you might achieve savings of upwards of $23. Drivers with Penn National could save as much as $85 a year, and Liberty Mutual insureds might lower prices by $96 a year.
Remember that these prices are averaged across all ages of drivers and types of vehicles and and are not calculated with a specific location for low income drivers. So the company that has the cheapest rates for you may not even be in the list above. That helps illustrate why you need to quote rates from many companies using your own personalized driver profile and vehicle information.
The vehicle model you are seeking coverage for is a large consideration that determines whether or not you find affordable auto insurance for low income drivers. Vehicles with limited speed and performance, good safety features, or a low likelihood of liability claims will cost much less to insure than fast, unsafe models. The list below presents car insurance prices for a handful of the most affordable vehicles to buy coverage for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V LX 2WD||$1,160|
|Ford Escape XLS 2WD||$1,200|
|Honda Accord LX 4-Dr Sedan||$1,206|
|Chevrolet Equinox LT AWD||$1,258|
|Ford F-150 XLT Regular Cab 2WD||$1,272|
|Chevrolet Malibu LT||$1,281|
|Ford Explorer Eddie Bauer AWD||$1,290|
|Toyota Corolla XLE||$1,325|
|Ford Edge Sport 2WD||$1,335|
|Hyundai Sonata GLS 4-Dr Sedan||$1,348|
|Chevrolet Silverado 2500HD LTZ Crew Cab 4WD||$1,358|
|Volkswagen Jetta SE 4-Dr Sedan||$1,348|
|Nissan Rogue S 2WD||$1,358|
|Jeep Wrangler Unlimited Sahara 4WD 4-Dr||$1,360|
|Ford F-350 XL Crew Cab Cabela Package 2WD||$1,372|
|Chevrolet Impala LT||$1,376|
|Toyota RAV4 Limited 4WD||$1,384|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$1,402|
|GMC Sierra 2500HD SLT Extended Cab 4WD||$1,416|
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Premium data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and North Carolina minimum liability limits. Discounts applied include claim-free, multi-policy, multi-vehicle, safe-driver, and homeowner. Premium costs do not factor in specific location information which can increase or decrease auto insurance rates noticeably.
Looking at the data, you can conclude that makes and models like the Honda CR-V, Toyota Prius, and Ford Escape will definitely be the cheaper vehicles to insure for poor drivers.
Types of discounts on Raleigh car insurance
Auto insurance companies that sell policies for low income drivers may additionally offer discounts that could reduce prices by as much as 40% or more if you meet certain criteria. Larger auto insurance companies and some of the discounts are detailed below.
- GEICO has savings for air bags, anti-theft, seat belt use, defensive driver, membership and employees, and multi-vehicle.
- MetLife discounts include good student, accident-free, claim-free, defensive driver, multi-policy, and good driver.
- State Farm may have discounts that include student away at school, Steer Clear safe driver discount, multiple policy, anti-theft, good driver, and safe vehicle.
- Progressive includes discounts for good student, online quote discount, homeowner, multi-vehicle, continuous coverage, and online signing.
- Mercury Insurance offers discounts including multi-policy, low natural disaster claims, type of vehicle, good driver, professional/association, and accident-free.
- 21st Century may offer discounts for theft prevention, early bird, driver training, good student, and automatic seat belts.
- Allstate offers premium reductions for passive restraint, safe driver, good student, anti-lock brakes, new car, and senior citizen.
The diagram below illustrates the difference between insurance premiums with and without discounts applied to the premium. The rates are based on a male driver, no accidents, no driving violations, North Carolina state minimum liability limits, full coverage, and $1,000 deductibles. The first bar for each age group shows the price with no discounts. The second bar shows the rates with multiple policy, anti-theft, vehicle safety, accident-free, multiple vehicle, and claim-free discounts applied. When taking advantage of discounts, the average savings per year on auto insurance for low income drivers is 28% or $392.
Safe drivers pay less for auto insurance
The ideal way to snag the cheapest auto insurance prices in North Carolina for poor drivers is to be an attentive driver and avoid accidents and traffic violations. The illustration below demonstrates how traffic citations and fender-benders drive up yearly insurance costs for different age categories. The data is based on a married female driver, comprehensive and collision coverage, $250 deductibles, and no policy discounts are applied.
In the example above, the average cost of an auto insurance policy in North Carolina per year with no accidents and a clean driving record is $1,348. Receive one speeding ticket and the average cost swells to $1,571, an increase of $223 each year. Then add one accident along with the one speeding ticket and the yearly cost of auto insurance for low income drivers increases to an average of $2,200. That’s an increase of $852, or $71 per month, just for not being a responsible driver!
Why you should be shopping around
Raleigh auto insurance rates are influenced by many factors that can increase the cost of a policy. Getting older, marrying your spouse, or having an at-fault accident can cause premium changes that can make some companies cheaper than competitors. In addition, auto insurance companies file new North Carolina car insurance rates every year or even multiple times each year to adjust for gains or losses. Heavy losses may result in additional price hikes, while a better loss history may cause more affordable Raleigh car insurance rates.
To illustrate this point, the bar chart below shows a variety of companies that have the cheapest car insurance in Raleigh, NC for a 45-year-old male driver with no prior accidents, a clean driving record, and good financial standing. Based on his current risk profile, Progressive may offer the best car insurance rates in Raleigh at $733 annually. This is $139 less than the average price paid by North Carolina drivers of $872. Utica National, Liberty Mutual, NC Farm Bureau, and Penn National are the rest of the most affordable Raleigh, NC auto insurance companies.
The chart below compares rates after we give the driver from the first rate comparison a chargeable accident, a lower credit score, and a traffic citation. Due to the fact that every insurance company has a different formula for determining rates in each state, comparing rates most likely will result in a new list of companies as shown below.
Titan now has the best price in Raleigh, NC with State Farm, Auto-Owners, Utica National, and Erie now being in the top five. This example illustrates why drivers need to spend some time comparing rates when trying to find the most budget-friendly car insurance rates for low income drivers. Rates are impacted by many different factors and change frequently, so the most affordable company when you bought your policy may now be one of the higher cost companies.