North Carolina Auto Insurance Rates Set to Rise 5% After Regulatory Settlement

North Carolina is set to implement a statewide average increase of 5% in automobile insurance rates effective October 1st, following a settlement between state regulators and the insurance industry. This agreement significantly lowers the initially requested average rate increase of 22.6% by the North Carolina Rate Bureau, which represents insurance companies in the state. The decision avoids a scheduled hearing that would have reviewed the industry's rate request in September. The increase addresses upward cost pressures from factors such as distracted driving, excessive speeding, and rising automobile repair expenses. Despite the hike, North Carolina’s auto insurance premiums are expected to remain among the lowest in the United States. Alongside auto insurance, the settlement includes a notable average reduction of 16.3% in motorcycle liability insurance rates across the state. This development follows a previous 2023 settlement that resulted in a 4.5% average annual premium increase over two years. The agreement reflects ongoing regulatory management balancing industry rate needs and consumer protection within the state's insurance marketplace.