North Carolina Rate Bureau Files for 28% Increase in Auto Insurance Rates

The North Carolina Rate Bureau is asking for a 28% increase in auto insurance rates for the state, an increase that will likely be slashed significantly by the state Department of Insurance.

The average statewide increase for private passenger auto rates would become effective Oct. 1. But the department must review the filing and historically has negotiated much lower final rates. The Rate Bureau, which is not a part of the DOI, must submit recommended auto rates every year by Feb. 1, and other property rates at different times through the year.

North Carolina in recent years has seen some of the lowest auto insurance premiums in the country – about $1,446 per year, according to Bankrate.com, a rate comparison site. That’s about half of what drivers in the most expensive states of Florida and New York pay.

The auto filing came three days after Insurance Commissioner Mike Causey announced that his office had negotiated a lower average final rate for dwelling policies. The Rate Bureau last fall had proposed a 42.6% increase but Causey’s actuaries were able to reduce that to a 9.9% increase, or about $31 per policy, on average.

The new dwelling rates take effect June 1.

Topics Trends Auto Pricing Trends North Carolina