Fort Bragg and the communities around it have some of the highest vehicle insurance costs in North Carolina.
Individuals in the Fayetteville-Fort Bragg location of North Carolina pay some of the highest car insurance prices in the state, according to an analysis of rate data by GateHouse Media.
The average annual rate for cars and truck insurance coverage in North Carolina was $947 in 2018– the third most affordable in the country– according to the data. However locals of Fort Bragg paid much more typically: $1,155.
Car insurance coverage rates in locations beside and near Fort Bragg in 2018 were greater than the majority of the remainder of the state. These include Fayetteville, Spring Lake, Hoke County and part of Harnett County. The average annual costs in those communities were $1,138 to $1,150 in 2015.
The Asheville area in western North Carolina had the most affordable insurance coverage rates, with prices of $854 down to $806 in 2015.
The only places higher-priced than Fort Bragg remained in parts of Charlotte and Mecklenburg County. Drivers in the highest-priced communities there paid usually $1,229 to $1,289 last year.
But North Carolina’s highest average cost, $1,289, was still well-below the national average of $1,470.
The insurance cost data that GateHouse Media analyzed was collected by a company called The Zebra. The Zebra gathers vehicle insurance coverage prices details that drivers can use to contrast store. The Zebra analyzed more than 61 million rates throughout the nation and shared some of its information with GateHouse Media, the moms and dad company of The Fayetteville Observer.
GateHouse’s staff examined the data to see how cars and truck insurance coverage rates vary geographically. The prices were broken down by ZIP code and ranked.
The rate of vehicle insurance coverage in North Carolina has 2 prime factors, said Fayetteville insurance coverage agent Mark Rice:
– The threat that a driver will enter into a crash that generates an insurance coverage claim.
– North Carolina’s tight guideline of insurance coverage costs, which keeps costs here amongst the lowest in the country.
“The cost of anything relative to insurance coverage is really related to use and frequency,” said Rice, who owns the Callahan & & Rice Insurance Coverage Group.
State Department of Insurance representative Barry Smith had similar thoughts.
“A number of elements add to North Carolina’s lower rates compared to the remainder of the nation. Those consist of a lower mishap frequency, relatively low traffic density and North Carolina’s tighter regulation policy,” Smith said.
What pushes up prices in Fayetteville and Fort Bragg?
“Cumberland County, being house to a large military base, would have a disproportionate number of male and more youthful, unskilled adult drivers, which are categories that are more prone to mishaps,” Smith said.
And younger motorists are charged more for insurance coverage, stated Rice.
The rates might even be higher in North Carolina if not for the state’s rigorous control of insurance prices. The state is uncommon in how it caps how much the business are permitted to charge, Rice stated.
“We’re one of the last states that has a rate bureau,” he said.
When insurance provider wish to increase their optimum rates, they have to ask the state for approval, Rice stated.
The industry submits its rates demand, he said, and the regulators consider it. If the regulators believe the asked for rates are too high, the market and regulators negotiate to set a compromise on the brand-new rates.
Smith stated an essential thing that keeps costs low here is that other states let the business raise rates initially, and settlements follow to bring prices down if those states’ regulators think the new rates are expensive.
“We are also in the minority of states where business are needed to get approval prior to they can make increases,” Smith said.
Personnel writer Paul Woolverton can be reached at email@example.com or 910-486-3512.