Lee County insurance rates rank 10th highest in state

Oct. 09--SANFORD -- Lee County residents who think their car insurance premiums are too high may not be imagining things -- at least according to a recently released new study.

NerdWallet.com, a California-based financial advising website, released a report listing the highest rates by county in North Carolina last week. Lee placed 10th among North Carolina's 100 counties, with average annual premiums of $1,021. The top nine, including Harnett County at eighth, all are south to southeast of Lee County. Moore and Chatham counties had rates in the lowest third.

"It's not a complaint that we hear often," said Will Harris, vice president of Sanford-based Harris & Company Insurance. "In fact, many of our new customers who move in from out of state remark on the lower rates."

According to NerdWallet.com, the national average for insurance is $1,100 nationwide, putting Lee County 7 percent below average.

"Two of the reasons that you'd typically see higher rates in certain areas would be higher vehicular theft rates and accident rates," said NerdWallet.com analyst Jeffrey Chu, who wrote the report.

Harris said that the state sets rates in territories and that those rates are based on various data collected. Lee County is in its own territory while more urban areas, like Wake County, may be divided into multiple insurance territories.

"There are a lot of factors [that influence cost], but there are some steps you can take," Chu said. "Think about whether you need to change your coverage.With an older car, for example, you may want to decrease the coverage you have to get lower premiums."

Harris said there are steps he recommends for anyone who is getting insurance.

"Number one, by far the most important thing is to drive carefully," he said. "North Carolina does have the Safe Driver Incentive Plan that most people know as driving points. If you have a minor accident, there is a table that insurers use to determine based on the damage it caused how much the rates should go up."

One option is to look for some type of accident forgiveness clause in a policy.

"Getting accident forgiveness, where you won't be charged more for your first at-fault accident, can save people hundreds of dollars over several years," Harris said.

He also suggested bundling policies. Using the same company for home, life, car and other types of insurance can result in a discount on each one.

Both Chu and Harris said having the availability of multiple policies can lead to better rates.

"Compare rates online," Chu said. "Prices do fluctuate. Sometimes people think the rates will be the same everywhere, but there are a lot of differences in how companies set the rate."

NerdWallet.com provides a portal for customers to explore to get quotes.

"Of course, I think the independent agency model has an advantage here," Harris said. "We represent several companies to make sure our clients get the best deal."

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