How Do Rate Changes Occur?

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North Carolina state insurance rates compare favorably to neighboring states and the rest of the country. The low rates are due, in part, to a set maximum rate for all auto insurers determined by the state insurance commissioner. Companies can charge less than the agreed upon increase to compete for customers but not higher. Across the border in South Carolina, insurers can determine their own rates because they are a free market state.
Since it has been several years since the last change took place in North Carolina, we want our customers to fully understand the impact of this change. At the state level, there will be an overall decrease in rates for motorists; however, some areas will see an increase based on zip code. In the past, rates were determined by territory, not zip code.
Drivers can be proactive in keeping their rates low. A clean driving record and good credit can help you save on insurance. Additionally, asking for higher deductibles, reducing coverage on older cars, taking advantage of low mileage discounts and seeking out other discounts can help save you money. These are sometimes offered to policyholders who have not had any accidents or moving violations or if you take a defensive driving course.
With the state changes affecting so many, AAA Insurance decided to implement an additional rate decrease in several zip codes. To learn more about specific zip codes, you can reach out to a trusted AAA Insurance agent for a quote.

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