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North Carolina Insurance Information

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selling in North Carolina for

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#1 Best Value for Car Insurance in North Carolina, 2016

Co-operative Insurance Companies, #1 Best Value in car insurance, North Carolina, 2016

Co-operative Insurance Companies was named the Number One Best Value for car insurance in 2016 for the state of North Carolina. Co-Operative Insurance Companies won with a ValChoice score of 100. The company beat out 62 other companies for this prestigious honor.

The ValChoice grading system reviews every insurance company, in every state. Each year we identify the best company, by state. Companies are chosen solely based on our independent, unbiased analytics.

How Good is Your Car Insurance?

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  • media_coverage_1-17c
  • Charlotte Observer, Charlotte, North Carolina
  • Charlotte Business Journal, Charlotte, North Carolina, on Car Insurance
  • Forbes
  • Triad Business Journal on Insurance on car insurance
  • WMBF, NBC TV, Channel 34, Myrtle Beach, South Carolina
  • New York Times on the value of mutual auto insurance
  • ONE, Observer News Enterprise, Newton, North Carolina on home insurance
  • Associated Press

The North Carolina state flag is the image for the North Carolina insurance page on the ValChoice website

In North Carolina, both auto insurance prices and homeowners insurance prices have been increasing rapidly. See the table below for details.

When insurance rates go up fast, it's time to shop for better insurance. Our analytics provide the most reliable information available on insurance companies. Best of all, we don't sell insurance. That means we're independent and unbiased.

Why I Founded ValChoice

Car and Home Insurance Average Rates and Three-Year Trend

Average Price*3-Year Change
Car Insurance $655 7.2%
Homeowners Insurance $1,075 16.0%
Median Household Income** Not Applicable 21.7%
*Insurance Information Institute (iii.org). The most recently published data from the III is through 2015. **U.S Census Bureau (https://census.gov). Data used matches the same three-year period that is available from the III.

new york times"ValChoice, a data analytics company that aims to bring some transparency to the opaque insurance industry."

-Gretchen Morgenson

Forbes magazine press article on technology executive, author and founder Dan Karr
ValChoice is “Carfax for...insurance”

-Giovanni Rodriguez

Auto Insurance In North Carolina

The five largest auto insurance companies in North Carolina are shown in the table below. The market share of each company is shown in the second column. The third column shows their most recent ValChoice Score. ValChoice Scores are only presented for companies with above average performance. For the companies where the needle on the gauge is missing, you can order a free report to get the ValChoice Score. This information is presented so you can reliably compare North Carolina auto insurance companies in order to understand your options for the best car insurance.

The ValChoice scoring system takes into account how they price, their historic performance for claims handling and the level of service they provide. This scoring system uses high quality data and grades on a curve. This approach to grading yields companies that score as high as 100 and as low as 0. Only a system like this gives consumers a true picture of the performance of car insurance companies. For more details on any given company, order a ValChoice report.

Compare Auto Insurance Companies in North Carolina

Market ShareValChoice Score
North Carolina Farm Bureau Insurance9.46%
gauge 77
77 out of 100
State Farm15.30%
gauge 55
55 out of 100
Nationwide12.70%
gauge 52
52 out of 100
GEICO (Berkshire Hathaway Insurance )11.21%
gauge 50
50 out of 100
Allstate Insurance8.41%
gauge below average
ValChoice only comments publicly on companies that are above average. For any company that is below average we don't publicly display the score. For those interested, scores on all companies are available with free reports. All analysis based on quantitative, high-quality data. Data sources include: SERFF, state insurance commissioners, National Association of Insurance Commissioners and AM Best Company. Data used by permission.

North Carolina laws require drivers to have the minimum insurance coverage shown in the table below. The important point to know about auto insurance coverage amounts is they define the maximum amount any North Carolina car insurance company is obligated to pay. If the costs are more than the amount of insurance coverage you purchased, you will be personally responsible for the costs above your coverage limits. More information on how insurance coverage protects you is included below the table.

Minimum Car Insurance Coverage Required in North Carolina

Minimum Coverage
Bodily Injury, per person 30,000
Bodily Injury, per accident 60,000
Property Damage 25,000

Types of North Carolina Car Insurance

Under North Carolina insurance laws, the costs of an accident are allocated to the driver who is at fault. This means, if you cause an accident, your insurance pays the medical bills, lost wages and cost of repairing the cars and property you damaged. If you don't have insurance, or don't have enough insurance, you are personally responsible.

Bodily InjuryProperty DamageProtecting YourselfUninsured/Underinsured Motorist

Bodily Injury Protection

Bodily injury protection is a type of liability insurance. Liability insurance means it pays for the other party, not you. In the table above the minimum bodily injury coverage you can buy in North Carolina is specified in the first line of the table. The minimum bodily injury coverage amount you can purchase to pay the bill when more than one person is injured in an accident is shown in the second line of the table.

Property Damage Protection

The property damage protection that is required under North Carolina law is also liability insurance coverage. Property damage liability insurance pays for repairs to the other person's vehicle or property, not your own. The maximum amount the car insurance company will pay on your behalf is the coverage limit that you purchased. If you want coverage above the minimum amount, that can be purchased but is not required.

Protecting Yourself, Your Passengers and Your Car

Coverage for your own vehicle, yourself and your passengers can also be purchased. However, this type of accident insurance is not required by law. Instead, it's optional. Reasons you may not want this additional car insurance could be that you have an old car that isn't worth repairing if something happens. You may not want bodily injury coverage for yourself if you have a good health insurance policy. However, don't forget that when you are the driver, you need to protect your passengers too. When you take the option to buy bodily injury insurance for you and your passengers, it is sometimes called personal injury protection. Personal Injury Protection (PIP) is a type of accident insurance where your own car insurance company pays first. This is not required in North Carolina. Don't let the different terms confuse you.

Many people wonder what coverage they have for a vehicle that gets damaged by floodwater. Floodwater damage protection is part of your comprehensive insurance. For more details on insurance coverage for flooded vehicles, read our blog post titled "Does Your Car Float Like a Boat? What to do if it Won't!"

Uninsured Motorist and Underinsured Motorist

Despite laws that every driver have auto insurance, not everyone does. Or, they don't have enough coverage to pay the costs of a serious accident. Uninsured motorist coverage will pay the costs the other drivers insurance should have paid when they don't have insurance to cover the cost of an accident. Uninsured or underinsured motorist insurance changes the arrangement so your auto insurance company will pay the costs the other drivers insurance doesn't cover.

Getting an Auto Insurance Quote

When you get a car insurance quote, be sure to get an example of the insurance policy, or the declarations page. This will be proof of how much insurance you're actually buying. Also, be sure to keep a copy of the insurance policy so you know the full extent of your coverage.

Always ask your agent to provide you with a ValChoice report. ValChoice reports are the only reliable way to know how well insurance companies perform for providing a good value, their performance when handling claims and the level of service they provide.

 

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Homeowners Insurance In North Carolina

North Carolina Home Insurance Rates and Trends

The five largest home insurance companies in North Carolina are shown in the table below. The market share of each company is shown in the second column. The third column shows their most recent ValChoice Score for homeowners insurance. ValChoice Scores are only presented for companies with above average performance. For companies where there is no needle on the fuel-gauge-style image, you can order a free report to get the ValChoice Score. This information is presented so you can reliably compare North Carolina homeowners insurance companies in order to understand how to get the best homeowners insurance.

The ValChoice scoring system takes into account how they price, their historic performance for claims handling and the level of service they provide. This scoring system uses high quality data and grades on a curve. This approach to grading yields companies that score as high as 100 and as low as 0. Only a system like this gives consumers a true picture of company performance. For more details on any given company, order a ValChoice report.

Compare Homeowners Insurance Companies in North Carolina

Market ShareValChoice Score
USAA7.99%
gauge 84
84 out of 100
North Carolina Farm Bureau Insurance12.48%
gauge 80
80 out of 100
State Farm18.29%
gauge 55
55 out of 100
Nationwide11.13%
gauge below average
Allstate Insurance6.73%
gauge below average
ValChoice only comments publicly on companies that are above average. For any company that is below average we don't publicly display the score. For those interested, scores on all companies are available with free reports. All analysis based on quantitative, high-quality data. Data sources include: SERFF, state insurance commissioners, National Association of Insurance Commissioners and AM Best Company. Data used by permission.

Renters Insurance

Many companies that offer homeowners insurance also offer renters insurance. The ValChoice grading system applies to renters insurance as well as home insurance. To get a report on renters insurance, simply select homeowners insurance and choose the type of insurance report card you would like to have.

Flood Insurance

Flood insurance is offered separately from homeowners insurance. Talk to your insurance company or insurance agent if you wish to purchase flood insurance. At this time ValChoice does not grade any flood insurance offerings. For more information on flood insurance, read our blog post titled "10 Facts About Flood Insurance, Without Drowning in Details."

Hurricane Deductibles

State law in North Carolina allows for named storm deductibles. A named storm is a hurricane or tropical depression to which a name has been assigned by the National Hurricane Center of the National Weather Service.

Hurricane  and named storm deductibles mean you are likely to pay much more if wind damages your home than if something else damages your home. For more information on hurricane and wind/hail deductibles read our blog post "How to Get Hurricane Insurance Without Getting Blown Away."

Getting an Insurance Quote

When getting a homeowners insurance quote, be sure to consider the following important items.

Amount of Coverage

The dollar amount of insurance coverage to purchase should be equal to the estimated cost of rebuilding the home. Do not include the property value when determining the amount of insurance to buy.

Extended Dwelling Endorsement

This coverage is often referred to as “extras.” This is additional coverage that addresses the problem that occurs when the actual cost to rebuild the home is more than was estimated when buying the insurance. In situations where there is a catastrophic event such as a flood, tornado or hurricane, building costs can increase significantly due to building materials increasing in price and contractors being scarce. Extended dwelling endorsements cover this higher than expected building cost. Extended dwelling endorsements are typically offered as a percentage of the coverage amount. The amount offered is commonly 10%, 25%, 50% or 100% of the coverage.

Building Code Coverage

When rebuilding a home, local laws will require that you rebuild to current building codes. If building damage is extensive, sometimes the laws even require you to upgrade the undamaged portion of the home to meet current building codes. This can be a significant additional expense. It's common that a homeowners insurance policy will exclude or limit the coverage for conforming to current building codes. Be sure to understand this important point about the insurance you buy.

Loss of Use

This specifies how much and how long the insurance company will pay for you to live somewhere else while your home is being rebuilt or repaired. One year in loss of use coverage is common. If your home requires a total rebuild, it’s wise to plan on a couple years for the project to be completed.

Covering Your Personal Items (“Contents”)

Your personal items will commonly be covered by what’s known as “replacement cost” coverage. This means you only get paid when you actually replace the item. There are two important items to understand here. 1) You must have a detailed home inventory to know what you had in order to replace these items, and 2) if you had $200,000 worth of contents and only replaced $20,000 worth of items, you would only receive the $20,000. “Replacement cost” sounds good. In reality, it may leave you far short of what you expected.

 

How Good is Your Home Insurance?

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North Carolina Homeowners Insurance Rate Calculator

Home Insurance Rate Calculator

This calculator is an average of insurance prices across the state. Individual prices will vary depending on factors such as deductibles, coverage and the risks associated with the specific area where you live.

Use this calculator to estimate home insurance prices in North Carolina. Just enter the replacement value (cost to rebuild, not including the land).

 

North Carolina Homeowners Insurance Prices Yield 24th Worst Value of All 50 States

The value consumers get for their home insurance in North Carolina is slightly below average. However, the price increases for homeowners insurance have been going up faster than most states. We measure value based on what percentage of the premiums collected by insurance companies are paid out in the form of claims.We do this over several years to account for catastrophic events.

For the ten-year period from 2007 to 2016, North Carolina residents had the 24th worst value from their homeowners insurance of all 50 states. Due to the low value of home insurance in North Carolina, homeowners need to shop carefully for insurance.

Important Insurance Laws - North Carolina

This calculator is an average of insurance prices across the state. Individual prices will vary depending on factors such as deductibles, coverage and the risks associated with the specific area where you live.

The value consumers get for their home insurance in North Carolina is close to the average of all states. However, the price increases for the insurance have been going up faster than 70% of the states. We measure value based on what percentage of the premiums collected by insurance companies are paid out in the form of claims. With home insurance rates increasing so fast, North Carolina residents need to shop carefully to be sure they are getting a fair price for their home insurance. [/twocol_one_last]

North Carolina Insurance Regulation

The North Carolina Department of Insurance develops and enforces insurance laws for the state. Consumers can contact the department with questions and complaints about their auto and home insurance. If you do not receive the service you expect from your insurer, you can file a complaint directly with the North Carolina Department of Justice. The state of North Carolina no longer makes a summary of complaints filed against insurance companies available to consumers. To find this information you can get a ValChoice report on any company that sells auto and home insurance in North Carolina.

The insurance commissioner in the state of North Carolina is elected by the voters of the state. Being elected by voters makes the commissioner directly accountable to the citizens. This is beneficial to consumers when dissatisfied with the performance of an insurance company.

Important Laws

A summary of the driving safety laws for the state of North Carolina can be found at this link. The information includes a summary of the laws affecting people driving cars, or riding motorcycles or bicycles while using cell phones or texting. Also included are the requirements for child safety seats, wearing a helmet and being under the influence while operating a vehicle in the state of North Carolina.

The North Carolina Statute of Limitations defines the time limit following an accident when you can file a lawsuit. Once this time limit has passed, you can no longer file a lawsuit.

State law in North Carolina allows for homeowners insurance to invoke hurricane and named storm deductibles. This type of deductible means you will pay a percentage of your homes value before the insurance companies starts paying for losses. This different type of deductible goes into effect when a storm is named by the  National Hurricane Center or the National Weather Service.

Resources Available to Consumers

Small Claims Court is available for you to resolve issues, without needing to hire an attorney. This link to the small claims court provides more information, including the dollar limit of claims that can be made in this court.

The Federal Emergency Management Agency (FEMA) is for disaster victims who are uninsured, underinsured or the victim of a flood.