Key Takeaways
- N.C. Insurance Commissioner Mike Causey announces a 5% average increase in auto insurance rates.
- The approved increase is significantly lower than the 22.6% initially requested by the N.C. Rate Bureau.
- A 16.3% decrease in motorcycle liability insurance rates is also included in the settlement, effective on policies from Oct. 1.
Settlement Announcement
Insurance Commissioner Mike Causey has revealed a settlement with the N.C. Rate Bureau regarding automobile insurance rates in North Carolina. The agreement stipulates an average statewide increase of 5%, which is notably 17.6 percentage points lower than the initial request made by the Rate Bureau in February.
The settlement is designed to address the upward pressure on insurance rates caused by factors such as distracted driving, excessive speeding, and rising automobile repair costs. Commissioner Causey expressed satisfaction over keeping the increase manageable, stating, “I’m happy that we were able to hold the average increase to 5%,” and highlighted that North Carolina’s rates remain among the lowest in the country.
In addition to the auto insurance rate increase, the agreement includes a significant reduction in motorcycle liability insurance rates, averaging a 16.3% decrease. This change aims to provide relief to motorcycle riders within the state.
The Rate Bureau, which represents insurance companies underwriting auto insurance in North Carolina, is independent of the Department of Insurance. Their request for an increase was filed on February 3.
The newly approved rate changes are set to take effect for new and renewed policies on or after October 1. Following this settlement, a previously scheduled hearing regarding the rate request set for September 22 has been canceled, marking a resolution to the dispute over insurance pricing in the state.
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