North Carolina Auto Insurance Rates to Increase 5% from October 2025

The North Carolina Department of Insurance announced a 5% average increase in automobile insurance rates for new and renewed policies effective after October 1, 2025. This adjustment is the result of a settlement between the State Insurance Commissioner Mike Causey and the North Carolina Rate Bureau (NCRB), which represents auto insurers in the state. The rate increase aims to address current cost trends affecting the automobile insurance market in North Carolina, reflecting underwriting losses or escalating claims costs that insurers may be experiencing.

The settlement eliminates the need for a scheduled regulatory hearing on the rate filing initially set for September 22, allowing the rate increase to take effect without further delay. This agreement streamlines regulatory processes and reduces administrative burdens on both the state insurance department and insurance providers. The NCRB, an industry-backed entity separate from the Department of Insurance, plays a key role in negotiating these rates on behalf of insurers.

Auto insurance professionals and stakeholders should note that this rate change affects all policies underwritten in North Carolina starting post-October and may influence market dynamics such as premium pricing strategies and competitive positioning. The adjustment may also impact consumer cost projections and insurer loss ratio management going forward.

This development underscores continuing regulatory oversight and collaboration between state officials and insurer representatives to maintain market stability and rate adequacy. Industry participants should monitor further communications from the North Carolina Department of Insurance for guidance on compliance and implementation timelines. This rate adjustment reflects broader trends in regional insurance markets where pricing often responds to claims trends, legal environment changes, and operational costs.