Drivers in North Carolina can expect higher rates for auto insurance even though the North Carolina Department of Insurance recently ordered a 17.8 percent decrease in rates. However, according to the Charlotte Observer, the North Carolina Rate Bureau, which represents the state’s insurance companies, said rates would rise 5.9 percent while insurers appeal the insurance department’s order. The rate increase is expected to go into effect Jan. 27, 2003.
The increase will be the fourth since 1989 that the Rate Bureau raised premiums while appealing state-ordered rate decreases. Insurers raised rates 5 percent last year while appealing a 13 percent drop.
The difference between what drivers would have paid with the state-ordered decrease and what they will pay with the Rate Bureau’s increase will be go into an escrow account while the appeal goes through the courts. However, if motorists do see refunds, it won’t happen for years.
Topics Auto North Carolina
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