For students in college, one of the largest things that are used to help calculate the cost of insurance is where you normally keep your vehicle. Areas with more people or more claims tend to have more expensive car insurance rates, whereas areas with less people or fewer weather incidents have the luxury of cheap car insurance rates.
The information below shows the most expensive cities in North Carolina for college students to buy an auto insurance policy in. Charlotte is listed at #3 costing $816 on average, which is approximately $68 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Jacksonville | $900 |
| 2 | Fayetteville | $896 |
| 3 | Charlotte | $816 |
| 4 | Gastonia | $811 |
| 5 | Durham | $789 |
| 6 | Wilmington | $781 |
| 7 | Cary | $765 |
| 8 | Huntersville | $756 |
| 9 | Greensboro | $756 |
| 10 | Greenville | $752 |
| 11 | Rocky Mount | $748 |
| 12 | Wilson | $746 |
| 13 | Indian Trail | $745 |
| 14 | Goldsboro | $743 |
| 15 | Raleigh | $737 |
| 16 | Apex | $725 |
| 17 | High Point | $723 |
| 18 | Hickory | $718 |
| 19 | Winston Salem | $709 |
| 20 | Chapel Hill | $703 |
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Rate quotes are comparative as the specific geographic location can alter prices substantially.
Comparing quotes for affordable auto insurance is not most people’s favorite thing to do, and finding out which companies have the cheapest insurance rates for college students involves a little more work. Every auto insurer has a proprietary formula to determine rates, so we need to take a look at the most budget-friendly insurance companies in Charlotte.
Find Cheaper Auto Insurance for College Students
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Progressive | $632 |
| 2 | Utica National | $636 |
| 3 | Liberty Mutual | $700 |
| 4 | NC Farm Bureau | $709 |
| 5 | Penn National | $747 |
| 6 | GEICO | $750 |
| 7 | Titan | $751 |
| 8 | State Farm | $756 |
| 9 | Auto-Owners | $852 |
| 10 | Erie | $895 |
| 11 | Travelers | $909 |
| 12 | National General | $917 |
| 13 | Allied | $928 |
| 14 | Peerless | $972 |
| 15 | MetLife | $1,018 |
| 16 | Safeco | $1,034 |
| 17 | Nationwide | $1,041 |
| 18 | Unitrin | $1,042 |
| 19 | Allstate | $1,054 |
| 20 | Encompass | $1,063 |
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Progressive offers some of the lowest car insurance rates in Charlotte at around $632 per year. This is $240 less than the average premium paid by North Carolina drivers of $872. Utica National, Liberty Mutual, NC Farm Bureau, and Penn National would also make the list of some of the best Charlotte, NC auto insurance companies.
In this example, if you are a policyholder with Utica National and switched to Progressive, you might achieve a yearly price reduction of approximately $4. Policyholders with Liberty Mutual could save as much as $68 a year, and NC Farm Bureau insureds might reduce rates by $77 a year.
It’s important to note that these estimates are averaged across all drivers and vehicles and and are not calculated with an exact zip code location for college students. So the car insurance company that can offer you the best price may not even be in the top 20 companies shown above. That points out the importance of why you need to compare rates from as many companies as possible using your own specific driver information and vehicle.
The type of vehicle requiring insurance is a large consideration when trying to find the most economical auto insurance for college students. Vehicles with high performance features, poor safety ratings, or a high likelihood of having liability claims will cost much more to insure than more modest models. The next list features auto insurance rates for some of the most cost-effective vehicles to insure in North Carolina.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX 4-Dr Sedan | $2,758 |
| Honda CR-V EX-L 2WD | $2,801 |
| Ford F-150 XL Regular Cab 2WD | $2,875 |
| Ford Escape Limited 4WD | $2,976 |
| Toyota Prius | $3,017 |
| Dodge Grand Caravan SE | $3,096 |
| Ford Explorer XLT 4WD | $3,105 |
| Jeep Wrangler Sahara 4WD 2-Dr | $3,096 |
| Volkswagen Jetta 2.0T Station Wagon | $3,195 |
| Chevrolet Impala LS | $3,228 |
| Ford Edge SEL AWD | $3,236 |
| Ford Focus S 4-Dr Sedan | $3,228 |
| Chevrolet Equinox LS 2WD | $3,271 |
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Data assumes single female driver age 20, 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 amounts do not factor in vehicle location which can impact auto insurance rates significantly.
By looking at the data, we can assume that vehicles like the Honda Accord, Honda CR-V, Ford F-150, Ford Escape, and Toyota Prius are going to be a few of the cheapest vehicles to insure for students in college. The cost of a car insurance policy will trend higher just due to the fact that there is more risk for college students, but in general those particular models will have the cheapest car insurance rates compared to other vehicles.
The illustration below shows how choosing a deductible can impact insurance costs when researching cheap insurance for college students. The premiums are based on a married male driver, comprehensive and collision coverage, and no other discounts are factored in.
The chart above illustrates that a 40-year-old driver could lower their policy premium by $234 a year by increasing from a $100 deductible up to a $500 deductible, or save $352 by selecting a $1,000 deductible. Young drivers, such as the 20-year-old chart data, can cut $788 or even more by using a higher deductible. When raising deductibles, it’s a good idea to have enough savings to offset the extra out-of-pocket expense that comes with higher deductibles.
Full coverage rates compared to liability only
Paying less for insurance is probably important to the majority of vehicle owners, and one common way to reduce the cost of insurance for college students is to not insure for full coverage. The illustration below illustrates the difference between insurance prices with full physical damage coverage compared to only buying the minimum liability limits required in North Carolina. The rate quotes are based on no claims, a clean driving record, $1,000 deductibles, drivers are not married, and no policy discounts are applied.
Averaged for all ages 20 through 70, full coverage on your policy costs an additional $1,053 per year more than insuring for liability only. At some point, every insured wonders if buying full coverage is worth the expense. There is no definitive formula of when to phase out comp and collision coverage, but there is a guideline you can use. If the yearly cost of full coverage is more than around 10% of the settlement you would receive from your company, then you might want to consider buying only liability coverage.
For example, let’s assume your vehicle’s replacement cost is $5,000 and you have $1,000 deductibles. If your vehicle is destroyed, the most you would receive is $4,000 after paying your deductible. If premium cost is more than $400 a year for physical damage coverage, the it may be a good time to stop paying for full coverage.
Reckless driving habits raise insurance rates
The common sense way to get good insurance rates in Charlotte for students in college is to be a cautious driver and have a clean driving record. The diagram below demonstrates how speeding tickets and at-fault accidents raise insurance costs for each age group. The data assumes a married male driver, full coverage, $1,000 deductibles, and no policy discounts are applied.
The data above shows the average cost of auto insurance in Charlotte per year with no violations or accidents is $1,189. Factor in one speeding ticket and the average cost jumps to $1,369, an increase of $180 each year. Now include two accidents along with the one speeding ticket and the annual cost of insurance for college students jumps again to an average of $3,069. That’s an increase of $1,879, or $157 per month, just for not driving safely!
If you have coverage questions and would like to get some help when shopping for cheaper insurance for college students, the insurance agencies below are a good start to answer your questions and help you decide which coverage fits your budget.
To find a Charlotte insurance agency closest to you, click the link at the bottom or click here to compare rates now.
- GEICO Insurance Agent
4651 South Blvd Suite B – Charlotte, NC 28209 – (704) 523-2886 - Nationwide Insurance: Michael Bare Agency
2300 Sardis Rd N a – Charlotte, NC 28227 – (704) 248-8000 - Mark McDuffie Insurance Agency
6101 Carnegie Blvd #415 – Charlotte, NC 28209 – (704) 364-9227
Find a Charlotte, NC insurance agent near you
How to find economical insurance for college students
The list below details a few thrifty suggestions that can help drivers get lower-cost car insurance.
- Prevent price hikes by avoiding at-fault accidents
- Bundle home and auto and earn a discount
- Ensure your driving record is clean
- Full coverage is expensive so only insure older vehicles for liability only
- Discounts for being claim-free can be substantial
- Safer vehicles cost less to insure
- Keep rates low by shopping around frequently
That last piece of advice is highly critical, as was stressed in the prior article. Auto insurance rates go up and down frequently, so don’t be unwilling to change to a new company if you can find a cheaper rate.
We understand brand loyalty, but it’s not a good idea if that dedication is costing lots of money. Take a few minutes and compare rates to find cheaper car insurance for college students in Charlotte.