Rate Bureau requests 20+% increase on NC auto insurance

Buckle up, North Carolina vehicle owners!  The cost of your auto insurance may be going up by over 20% later this year.

According to a Tuesday press release from North Carolina Insurance Commissioner Mike Causey, insurance companies in the Tar Heel State have requested a statewide average increase of 22.6% in automobile insurance rates.

The North Carolina Rate Bureau (NCRB), which represents the state’s automobile insurance companies and is not part of the NC Department of Insurance (NCDOI), filed the request with the department on Monday.

The insurance companies requested that the rates take effect on Oct. 1 of this year.

State law gives the Commissioner of Insurance 60 days to review the rate request to determine if the increase is justified based on the data submitted. If Causey does not agree with the requested increase, he and the department can negotiate a settlement or call for a hearing.

If a settlement can’t be reached, the case goes to a hearing, and a hearing officer would make a ruling on the request.

This rate filing follows a February 2023 request by NCRB in which the insurance companies requested a statewide 28.4% increase for auto insurance rates. NCDOI reached a settlement with NCRB resulting in only a 4.5% increase in 2023 and 2024, with motorcycle liability rates increasing 2.3% in those years.  

The latest request comes after it was announced last month that homeowners’ insurance rates will increase on average by 15% statewide over the next two years, a significantly lower rate than the average 42.2% rate increase the North Carolina Rate Bureau (NCRB) was seeking.

Causey said that his office and the NCRB signed an agreement that will see the average statewide base rate for home insurance increase by 7.5% on June 1, and 7.5% on June 1, 2026.

That request was made in January 2024. Subsequently, a multitude of homeowners and others from across the state voiced their concerns at a public comment forum on Jan. 22, 2024, and by email and mail. 

A hearing was held late last year.

Similar timelines may be expected concerning the request for auto insurance rate increases, as NCDOI works through public comment periods and negotiations before final decisions on rates are made.

The newest updated information on insurance rates in North Carolina can be viewed here.

The post Rate Bureau requests 20+% increase on NC auto insurance first appeared on Carolina Journal.

 

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