Throughout North and South Carolina, inflation is impacting the cost of gas, groceries, housing, and now, auto insurance. According to industry and media reports, auto insurers may hike premiums from 6% to upwards of 10% this year.
Understanding what’s causing auto insurance prices to increase may help you find ways to save. Here are the reasons rates are increasing and three tips to help you keep your costs as low as possible.
Why are auto insurance rates increasing in North and South Carolina?
An increase in auto insurance rates in North and South Carolina is due at least in part to several factors. General inflation is affecting multiple components of car insurance, from repairs to replacement costs. Supply chain disruptions are impacting the availability of auto parts, which is also leading to higher repair costs. And the cost of running and operating insurance companies (rent, utilities, wages, gas prices, etc.) is increasing, which inevitably impacts payers.
How to save money on your auto insurance premiums
As auto insurance premiums go up in North and South Carolina, here are three tips to help you save money and lower your insurance bill.
- Bundle your insurance policies
One of the easiest ways to save money on insurance is to combine your home and auto insurance policies, which means you buy multiple insurance policies from the same company.
Bundling your home and auto insurance comes with benefits that can include:
- Increased savings. A multipolicy discount could save you as much as 25%, depending on the company and where you live.
- Simplified policy management. You should have less of a hassle managing multiple policies when they come from the same company.
- Insurance security. If you’ve made auto insurance claims or gotten tickets, having other policies with the same company can lower the chances your insurer will drop you.
- Reduce your mileage
If you’re able to find ways to reduce how much you drive, you could be eligible for a discount on your auto insurance. Insurance companies take into account your annual mileage when they calculate your premium. Consider reducing your annual milage by carpooling to work, riding your bike locally, using public transportation, or opting to work from home on select days.
In addition, some insurance companies offer electronically monitored, usage-based insurance that bases your rate on your driving habits. These programs can earn you deep discounts on your premiums. For example, through State Farm’s Drive Safe and Save™ program, drivers who log relatively few miles can save as much as 30% on their insurance.
- Review your policy for additional car insurance discounts
Insurance companies typically offer a number of additional discounts that enable you to save on your annual premium, such as:
- Accident-free and good-driver discounts – Most major insurers offer discounts (10-30%) to drivers who have had no accidents or traffic violations in the past three to five years.
- Taking defensive driving courses – Many insurance companies provide discounts to drivers who take defensive driving classes, and the discounts typically range from 5% to 20% off your car insurance premium.
- Paying your premium in full upfront – If you pay your auto insurance premium upfront for the entire term (usually six months or a year), some insurance companies will reduce your premium by 3-5%.
- Enrolling in automatic payments – Most companies offer a one-time discount off your deductible of $50- $100 when you sign up for automatic auto insurance payments.
- Installing anti-theft devices – By installing multiple forms of anti-theft devices, you diminish your risk of theft and insurers may lower your rates by up to 25% depending on where you live.
The best way to know if you qualify for additional discounts is to contact your insurance company.
Do not reduce coverage to try to save money
Currently, traffic deaths are at a 16-year high according to the National Highway Traffic Safety Administration (NHTSA). North and South Carolina roadways are much more dangerous today than in previous years. An increase in dangerous driving habits, such as distracted driving and speeding, a decrease in routine vehicle maintenance (likely attributed to rising costs), and a return to pre-pandemic traffic levels are all contributing to the surge in fatal traffic accidents.
As auto accidents continue to increase across North and South Carolina, drivers should not reduce auto insurance coverage to save money. In the unfortunate you are involved or injured in an auto accident, if you have minimal coverage, it could cost you significantly more in the long run.
Learn more about why we strongly recommend adding additional coverage to your car insurance policy here.
Injured in an auto accident in North or South Carolina?
Call Auger & Auger immediately at (855) 969-5671
Car accidents can be devastating, stressful, and tremendous burdens for you and your family. But help, support, and guidance are one phone call away.
The personal injury team at Auger & Auger has over 25 years of experience helping thousands of injury victims and their families recover from serious accidents in North and South Carolina. From the moment you contact us, we will give you straightforward, honest answers to all of your questions. We will inform you of your options and legal rights. We can help you find local medical specialists. We will even handle the insurance companies on your behalf.
Learn more about how Auger & Auger can help you by requesting a FREE case review here.
Or call 855-969-5671 to schedule your complimentary meeting with our experienced personal injury attorneys.