For residents across the Tar Heel State, navigating the everyday costs of living, including essential expenses like car insurance, is a constant consideration. Drivers in North Carolina are always on the lookout for ways to keep their budgets in check, especially when it comes to finding affordable coverage without compromising protection.
Fortunately for some policyholders, Travelers Insurance is set to provide some welcome relief for customers across the state.
What’s Happening?
Starting August 21, Travelers Insurance is set to reduce auto insurance premiums by an average of 6.1%— impacting roughly 44,823 policyholders. This adjustment is set to decrease total written premiums in the state by over $5 million– translating to an average decrease of $119 per policy.
Why Insurers Adjust Rates
It’s natural to wonder why insurance rates change. While a decrease is certainly good news, understanding the factors that lead to rate adjustments, both up and down, can help you better navigate the car insurance market. Insurance companies are businesses that manage risk, and their rates are determined by a complex set of calculations designed to cover anticipated claims and operational costs.
Here are some common reasons why insurers increase or decrease rates:
Claims Frequency and Severity: If an area experiences a rise in accidents, thefts, or natural disaster claims, insurers will see their payouts increase. To cover these higher costs, premiums may go up. Conversely, if claims decrease, rates may follow suit.
Driving Behavior and Technology: Advances in vehicle safety technology (like automatic emergency braking) can reduce accidents, potentially leading to lower rates. However, factors like distracted driving or an increase in reckless behavior can push rates higher.
Economic Factors: Inflation directly impacts the cost of car repairs, medical care for injuries, and replacement parts. As these costs rise, so too do the expenses for insurers, which can be reflected in higher premiums. A stabilization or decrease in these costs could contribute to rate reductions.
Regulatory Changes: State insurance departments oversee rate changes. New regulations or changes to existing ones can influence how much insurers can charge.
Competitive Landscape: The insurance market is competitive. Companies may adjust rates to gain market share or retain customers, especially if a competitor makes a significant change.
Company-Specific Performance: Each insurer’s financial performance plays a role. If a company has a particularly profitable period, they might pass some savings on to policyholders through rate reductions.
The current adjustment by Travelers in North Carolina suggests a positive internal performance or a favorable shift in some of these underlying factors within the state.
Shop now and save!
How to Take Advantage of This Adjustment from Travelers
Any time an insurance carrier adjusts its rates, it presents an opportunity for consumers to reevaluate their coverage and ensure they are securing the best possible deal. While this reduction from Travelers is beneficial, it’s also a reminder that the insurance landscape is constantly evolving. Understanding these shifts can empower you to make informed decisions about your auto insurance policy.
For those currently insured with Travelers, this upcoming rate decrease means you could see a lower premium when your policy renews on or after August 21, 2025. However, there are proactive steps you can take to potentially maximize your savings, both with Travelers and other carriers offering cheap car insurance in North Carolina.
1. Proactively Review Your Travelers Policy
Even though the decrease is set to impact renewals, it’s a good practice to proactively reach out to Travelers before August 21, 2025. Inquire about how this rate adjustment will affect your specific policy. Sometimes, asking for an updated quote can ensure you’re fully benefiting from the new, lower rate as soon as possible, rather than waiting for your renewal statement. It’s a quick step that could lead to immediate savings.
2. Shop Around with Other Carriers
This is perhaps the most powerful strategy for finding cheap car insurance: regularly comparing quotes from multiple providers. Even with a rate decrease from one insurer, another company might offer an even better deal for your specific needs.
The auto insurance market in North Carolina is robust and competitive, with various carriers vying for your business. Each insurer uses its own unique underwriting criteria and algorithms to calculate premiums, considering factors like your driving history, vehicle type, location, and even credit-based insurance scores.
By regularly checking the market, you ensure you’re not missing out on potential savings that could amount to hundreds of dollars annually.
3. Optimize Your Coverages and Discounts
Your insurance policy isn’t a “set it and forget it” item; neither are your life circumstances. Taking the time to review your current coverages and available discounts can uncover significant opportunities to save.
Deductibles: Consider increasing your deductible on comprehensive and collision coverage. A higher deductible (the amount you pay out of pocket before your insurance kicks in) typically results in a lower premium. Just be sure you can comfortably afford the higher amount if you need to file a claim.
Coverage Levels: Do your current coverage levels still match your needs? For example, if your car is older and its market value has decreased, you might consider adjusting or dropping collision and comprehensive coverage if the cost of the premium outweighs the vehicle’s actual worth. Just make sure that you’re meeting all minimum requirements and getting sufficient coverage for every scenario.
Discounts: Are you maximizing all available discounts? Insurers frequently offer discounts for a variety of reasons:
Safe Driver Discounts: For maintaining a clean driving record.
Multi-Policy Discounts: Bundling your auto insurance with home, renters, or life insurance from the same carrier.
Good Student Discounts: For eligible students with good grades.
Vehicle Safety Features: For cars equipped with anti-theft devices, airbags, or other safety features.
Low Mileage Discounts: If you drive less than a certain number of miles annually.
Payment Discounts: For paying your premium in full, setting up automatic payments, or opting for paperless billing.
Always check with your insurer to ensure you’re receiving every discount you qualify for.
Secure Affordable Auto Coverage
Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.
