For new drivers, one of the largest things that are used to help calculate the price you pay for insurance is the neighborhood you call home in Raleigh. Regions with more people or even just more weather-related claims tend to pay slightly more, whereas areas with lower crime rates and fewer weather claims have the luxury of cheap car insurance rates.
The following table sorts the most costly cities in North Carolina for first-time drivers to purchase a policy in. Raleigh ranks #7 with the annual price of $767 on average, which is around $64 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Fayetteville | $905 |
| 2 | Jacksonville | $864 |
| 3 | Charlotte | $808 |
| 4 | Gastonia | $803 |
| 5 | Greensboro | $779 |
| 6 | Durham | $773 |
| 7 | Raleigh | $767 |
| 8 | Cary | $765 |
| 9 | Wilmington | $758 |
| 10 | Huntersville | $756 |
| 11 | High Point | $745 |
| 12 | Rocky Mount | $740 |
| 13 | Greenville | $738 |
| 14 | Goldsboro | $735 |
| 15 | Hickory | $732 |
| 16 | Indian Trail | $731 |
| 17 | Apex | $725 |
| 18 | Chapel Hill | $724 |
| 19 | Wilson | $724 |
| 20 | Winston Salem | $709 |
| 21 | Salisbury | $705 |
| 22 | Kannapolis | $697 |
| 23 | Concord | $690 |
| 24 | Burlington | $671 |
| 25 | Asheville | $667 |
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Premium costs are approximated as vehicle location can affect coverage prices greatly.
The vehicle on the policy is one of the biggest factors that determines whether or not you find low-priced insurance for first-time drivers. Vehicles with high performance features, a lack of advanced safety features, or a track record of large liability claims will cost substantially more to insure than safer, lower-performance models. The next list estimates coverage rates for a selection of the cheaper vehicles to buy coverage for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $4,006 |
| Ford Escape XLT 2WD | $4,012 |
| Honda Accord EX 4-Dr Sedan | $4,006 |
| Hyundai Elantra SE Touring Station Wagon | $4,287 |
| Toyota Prius | $4,323 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $4,473 |
| Ford F-150 STX Regular Cab 2WD | $4,482 |
| Dodge Grand Caravan SE | $4,510 |
| Toyota RAV4 Limited 4WD | $4,754 |
| Chevrolet Impala LT | $4,760 |
| Chevrolet Equinox LS AWD | $4,754 |
| Chevrolet Malibu Hybrid | $4,764 |
| Ford Explorer Eddie Bauer 4WD | $4,790 |
| Honda Civic EX 4-Dr Sedan | $4,961 |
| Ford Focus SES 4-Dr Sedan | $4,971 |
| Ford Edge Sport 2WD | $4,998 |
| Toyota Camry SE | $5,003 |
| Toyota Tacoma X-Runner 2WD | $4,998 |
| GMC Sierra SL Crew Cab 2WD | $5,034 |
| Toyota Corolla XRS | $5,044 |
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Prices 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 safe-driver, and claim-free. Premium costs do not factor in garaging location in Raleigh, NC which can change premiums considerably.
Looking at the numbers, makes and models like the Honda CR-V, Ford Escape, Honda Accord, and Hyundai Elantra are going to be a few of the more affordable vehicles to insure for new drivers. The price for an auto insurance policy will trend higher just due to the fact that there is more exposure for first-time drivers, but generally speaking those models will have the lowest prices that you are likely to find.
Reckless driving habits raise car insurance rates
The ideal way to find low car insurance premiums in Raleigh for new drivers is to drive safely and avoid accidents and traffic citations. The illustration below demonstrates how speeding tickets and at-fault fender-benders can drive up annual premium costs for each age group. The price estimates are based on a single female driver, comprehensive and collision coverage, $1,000 deductibles, and no discounts are factored in.
In the prior example, the average cost of car insurance in North Carolina per year with no accidents and a clean driving record is $1,006. Factor in two speeding tickets and the average cost hikes up to $1,337, an increase of $331 each year. Next add two accidents along with the two speeding tickets and the annual cost of car insurance for first-time drivers increases to an average of $2,717. That’s an increase of $1,711, or $143 per month, just for being a less-than-perfect driver!
Do you need full coverage?
Paying a lower price for car insurance is important to the majority of people, and one easy way to save on the cost of insurance for first-time drivers is to not pay for full coverage. The chart below compares auto insurance costs with full coverage compared to only the North Carolina minimum liability coverage. The costs are based on no violations or accidents, $250 deductibles, drivers are single, and no policy discounts are applied.
As an average, comprehensive and collision coverage on your policy costs $1,755 per year more than just buying liability only. That touches on the question if buying full coverage is worth the expense. There is no clear-cut formula of when to phase out comp and collision coverage, but there is a general guideline you can use. If the yearly cost for physical damage coverage is more than about 10% of the replacement cost minus the deductible, then you might want to consider buying only liability coverage.
There are some conditions where eliminating full coverage is not recommended. If you haven’t satisfied your loan, you have to keep full coverage to satisfy the loan requirements. Also, if you cannot afford to purchase a different vehicle in case of an accident, you should not buy liability only.
How to find cheaper car insurance for first-time drivers
Lowering your rates is not difficult, and here are a few penny-pinching suggestions that can help drivers get low-cost coverage.
- Increase deductibles to save money
- Maintain a clean driving record
- Increase your credit score
- Try to remain claim-free
- Insure your home and auto with the same company
- Accidents can significantly increase rates
- Compare prices frequently to find the best deal
That last piece of advice is extraordinarily necessary, as was affirmed in the article above. Auto insurance prices in Raleigh vary considerably, so don’t be afraid to change insurance companies if you can save money. Loyalty to a specific company is fine, but it’s not a great idea if that inflexibility results in costing you hundreds of dollars year after year. Now is a great time to compare prices to find cheaper insurance for first-time drivers.