North Carolina Proposes 23% Hike in Auto Insurance Rates

North Carolina is facing a proposed auto insurance rate hike, with a hearing scheduled for September 22. The North Carolina Rate Bureau has requested a statewide average increase of 23%, following two consecutive years of 4.5% increases. For certain areas such as the Outer Banks, rates could rise significantly, between 62% and 66% for comprehensive coverage starting October 1. This request comes after a new law increased minimum liability limits, reflecting rising vehicle and repair costs, as well as changes in driving habits caused by increased distractions.

The Rate Bureau argues that the proposed increases are necessary to maintain competition among insurance providers in North Carolina, which currently has some of the lowest auto insurance rates in the country. The Insurance Commissioner, Mike Causey, has expressed his disagreement with the proposed increases and emphasized the need for the hearing to find a resolution that is beneficial for both residents and insurance companies. Specific increases vary by territory, with some areas seeing large hikes in policy rates.