Gastonia Car Insurance

North Carolina is the only state in the U.S. that sets a maximum amount that insurance companies may charge licensed drivers for auto insurance.

It is also an “at-fault” insurance state which means that drivers must only pay for damages that are determined by law enforcement or legal process to be their fault.

The extremely low percentage of uninsured drivers also helps to give North Carolina bragging rights for being the lowest cost state in the nation for car insurance. Because Gastonia is a city in North Carolina, its licensed drivers enjoy these benefits just like the licensed drivers in every other North Carolina city and town.

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Safe Driver Incentive Plan

North Carolina insurance companies rate driver risk based on the Safe Driver Incentive Plan law. Traffic violations and at-fault accidents result in point assessments that establish how much more a car insurance company may charge for

Traffic violations and at-fault accidents result in point assessments that establish how much more a car insurance company may charge for higher risk drivers.

One SDIP point is assessed for these infractions which would increase a car insurance premium by approximately 30 percent:

• Any at-fault accident resulting in bodily injury or property damage of $1,800 or less to all parties involved
• Speeding tickets that are for less than 10 mph over speed limit in less than 55 mph zones

Two SDIP points are assessed for these infractions which would result in a premium increase of approximately 40 percent:

• Illegal passing
• Following too closely
• Driving on the wrong side of the road
• An at-fault accident resulting in more than $1800 of injury and property damage and less than $3,000 including all parties involved.
• Excess speeding of more than 10 mph in a speed limit zone of more than 55 mph and less than 76 mph.

At-fault accidents resulting in death, bodily injury and property damage in excess of $3,000 per incident will result in an assessment of three SDIP points and increase the cost of insurance by more than 45 percent.

Four SDIP points will be assessed to drivers who commit reckless driving, hit-and-run driving which results only in property damage, and passing a stopped school bus. Four SDIP points will cost the insured an additional 80 percent of the premium amount.

SDIP points continue to increase as driving becomes more reckless and causes more damage and injury.

It is very important that insured car owners in North Carolina are aware that they are the financially responsible party even if they are not the drivers. If an unlicensed driver causes an accident by driving a car insured by a licensed driver, the SDIP points are assessed against the insured who is the responsible party.

SDIP point assessments can increase to 12 points which increases an average car insurance premium by 340 percent.

Gastonia drivers enjoy some of the lowest car insurance premiums in the country as long as they don’t speed and get assessed SDIP points. The average cost of a speeding ticket in Gastonia when insurance price increases are calculated is $1,619.

Gastonia Insurance Price Scenario One

A 27-year-old man is paying $34 per month to State Farm Insurance for the minimum legally required liability coverage for his 2002 Honda Accord with his accident and violation free driving record at the time the insurance company approves his application.

This coverage includes $1,000 deductible and the required $30,000 bodily injury per person and $60,000 bodily injury protection per accident with $25,000 of property damage protection.

A ticket for speeding on a freeway is causing his minimum liability policy to increase to $47 per month at renewal time. The five insurance agencies in Gastonia are Geico, Nationwide, State Farm, Allstate and Farm Bureau.

All of these companies will provide minimum liability to this driver for either $46 or $47 per month with one speeding ticket.

A 27-year-old Gastonia school teacher with a 2011 Subaru Impreza has a basic coverage policy with State Farm Insurance that provides $50,000 per person bodily injury and 100,000 per accident with $25,000 of property damage protection.

Basic coverage also includes $50,000 per person and $100,000 per accident for uninsured motorist protection. The deductible is $500 and there is no rental car or glass coverage.

Basic coverage does include a $50 towing allowance. She pays State Farm $91 per month for this coverage.

The school teacher and the young man with the Honda Accord meet and marry. For car insurance, Nationwide is selected. He gets an upgrade to basic coverage because the multi-car discount pays the difference for the improved coverage.

They choose Nationwide because State Farm wants $147 per month and Nationwide provides the same benefits for only $121 per month.

During the next year, they have an at-fault collision in the Subaru. The woman is the driver and everyone fully recovers from their minor injuries. The badly damaged car is repairable. At renewal, Nationwide increases the monthly premium to $165.

Gastonia Insurance Price Scenario Two

A 45-year-old Gastonia dentist drives a 2012 Toyota Prius. He ran a stop sign in 2013 and was issued a traffic citation. His wife, aged 40 has no violations and drives a 2014 Prius. They have extended coverage with Nationwide for $148 per month.

The extended coverage provides $100,000 per person bodily injury and $300,000 per accident with $50,000 coverage for property damage.

The uninsured motorist protection is $50,000. Extended coverage also includes $75 for towing and $600  for a rental car with a $500 deductible. Farm Bureau Insurance in Gastonia charges $198 per month for this very same coverage.

Their son is having his 16th birthday in December and they are buying him a 2000 Ford Focus as his first car. Adding this new driver and vehicle to this policy causes it to increase to $353 per month for extended coverage to all.

Nationwide is still the best price in Gastonia for this family. Allstate would charge $427 per month for this policy.

Gastonia Insurance Price Scenario Three

A retired grandmother and her husband who is soon-to-be retired drive a 2010 Cadillac and a BMW. Two years ago, her foot slipped on the gas pedal and she ran into her friend’s garage.

This couple has had premium coverage for many years because they do not want to have to worry about anything after having an accident. They pay $353 per month to Farm Bureau Insurance for $250,000 per person bodily injury and $500,000 per accident.

Property damage protection is $100,000. Uninsured motorist coverage is the same at $250,000 per person and $500,000 per accident. Their deductible is $250; they have $75 for towing and $900 to pay for a rental car in addition to full glass coverage.

They could get the very same protection from State Farm for $277 per month, or pay $278 to Nationwide. Since they have been doing business with this agent for more than 30 years, they would not even consider shopping around.

You can still shop around to find affordable car insurance rates! Just enter your zip code below to start your research today!