On Tuesday, Insurance Commissioner Wayne Goodwin urged state legislators and the public to strongly oppose House Bill 927, which, among many provisions, would create a new tax on auto insurance premiums in North Carolina.
“This bill creates an unfair tax that will lead to higher car insurance costs for all North Carolina drivers,” said Goodwin. “This would amount to the highest approved across-the-board increase on car insurance costs in our state in 30 years.”
North Carolina is consistently ranked as having among the lowest car insurance costs in the country. A recent study by InsuranceQuotes.com and Quadrant Information Services found that North Carolinians have the lowest car insurance rates in the nation. House Bill 927 would change that.
If the bill becomes low, it would allow a 6.5% or higher increase be passed on to all drivers, regardless of their driving records and regardless of how much or little they drive. Personal and commercial auto policyholders would collectively pay more than $400 million more for insurance to cover the tax. The tax and its related costs would potentially drive car insurance company offices and jobs out of NC, Goodwin said.