North Carolina’s insurance regulator says he’s reached a deal with auto insurers for a premium increase of just over 2 percent instead of the nearly 14 percent average increase companies sought in February.
The state Insurance Department said Thursday the new rates will become effective with policies signed after October 1 and will stay in effect for two years.
Insurance Commissioner Mike Causey says the agreed average increase of 2.2 percent meant North Carolina consumers would spend more than $1 billion less over two years than the auto insurance companies initially wanted.
Causey said in March the proposed auto insurance rate increase requested by a group representing the industry was not justified. That set up an administrative hearing planned for September, when a hearing officer could listen to both sides.