RALEIGH – Insurance Commissioner Mike Causey announced today (Tuesday) a settlement with the N.C. Rate Bureau on automobile insurance rates. The settlement is about two-thirds less than the insurance companies had requested.
On Feb. 1 the Rate Bureau requested an overall average statewide increase in of 28.4 % for private passenger auto rates and 4.7% for motorcycle liability. The settlement provides an average statewide auto rate increase of 4.5% in 2023 and another 4.5% in 2024. The settlement also includes motorcycle liability increases of 2.3% in 2023 and 2.3% in 2024. The Rate Bureau represents the insurance industry in North Carolina and is not a part of the Department of Insurance.
The settlement will save drivers approximately $1.6 billion over the next two years compared to the Rate Bureau request. In addition, the settlement cancels a hearing scheduled for later this year, avoiding a lengthy administrative legal battle which would have cost consumers time and money.
According to a 2023 study from U.S. News and World Report, North Carolina ranked as the sixth lowest state in average annual automobile insurance costs.
“I’m proud that North Carolina is consistently among the lowest annual average rates for private passenger vehicles in the nation,” Commissioner Causey said. “In recent years, we’ve seen some rate increases due to more accidents and fatalities in North Carolina. This can be attributed to factors such as excessive speeding and driving under the influence. However, the number one cause of accidents and, thus, rate increases, is distracted driving. It is unlikely that we will see rate decreases in the future unless some of these trends change. Drivers and driving habits impact the rates the most, in addition to increased repair costs due to excessive inflation. We don’t wish for any rate increases but we are doing everything we can to protect consumers.”
The increase will take effect on new and renewed policies beginning on or after Dec. 1. By law, the bureau must submit auto rate filings with the department every year by Feb. 1.
Awwwwwww are they not able to make as much money now with Bidens economic inflation plan that they need to raise the rates to continue to rip off hard working Americans? So sad. Theater of the absurd.
@SMH: Not sure how Biden comes in to play here, but I guarantee that Causey and the GOP will tout his $1.6M *SAVINGS* during the 2024 campaign, and I’m 99.9% that the sheep (including everyone here who is complaining) will re-elect him to another term as long as he’s not a Dem. #VoteOutIncumbents #ReapWhatYouVote
The manipulation never stops and the good cop bad cop routine is comical. Just throw out a high request knowing the final increase settlement will be what they actually wanted. State gets the appearance of looking out for the people and as always, we should feel good because it could have been worse. A classic game that is played in all sectors and especially by the government.
They should be made to give a percentage of the money back to the ones who have had no claims every year
that won’t ever happen…but you are right…those of us who don’t file claims should get some kind of reward….in 48 years of driving I have never filed a claim, had a speeding ticket, or a wreck….yet my insurance just went up….again….I’m paying as much as my 17 yr old grandson on a 7 yr old mid-size SUV that is nothing special….
Yes they should! I get so tired of paying more every year even with no claims.
So these don’t go into effect until Dec 1 but my rates have continued to increase each renewal period. The government and their entities continue to screw those that have insurance and do the right thing.
Only a politician can spin a 9% *INCREASE* as as $1.6M *SAVINGS*…. and only sheep believe it. #VoteOutIncumbents
Tell the truth – You’re spot on! My sentiments exactly.
They go up every year even if you have a great driving record. This is just a reason to go up even more. All good citizens who drive legally and try to do the right thing have to pay for all those who don’t and the so called “rate bureau” is a joke… ask for way more than you actually want and you will end up getting the increase you want… there is no end to the abuse of hard working honest citizens by our “government” . Insurance companies are just another curse on the working man. This is your warning that your bill is going up more this year! And there is not one thing you can do about it; don’t cost the insurance company anything? Makes no difference, you’re gonna pay more anyway!
Got to cover all those “uninsured” drivers.