North Carolina Approves 5% Auto Insurance Rate Increase with Lower Motorcycle Rates
North Carolina's Insurance Commissioner Mike Causey has announced a settlement with the North Carolina Rate Bureau regarding automobile insurance rates. The agreed settlement implements an average statewide increase of 5% in automobile insurance premiums, significantly lower by 17.6 percentage points than the initial rate increase request filed by the Rate Bureau in February. This adjustment takes into consideration upward pressures on insurance due to factors like distracted driving, excessive speeding, and rising automobile repair costs.
Notably, the settlement also mandates a decrease in motorcycle liability insurance rates by an average of 16.3% statewide. The Rate Bureau, which represents insurers writing automobile policies in North Carolina but operates outside the state's Department of Insurance, had initially requested the increase on February 3. The new rates will become effective for new and renewed policies starting October 1. The settlement has led to the cancellation of a previously scheduled hearing on the rate request planned for September 22.
This development impacts the regulatory and market landscape in North Carolina's auto insurance sector, maintaining premiums at some of the lowest levels nationally despite rising costs. Insurers, regulators, and consumers alike will be closely monitoring the implementation of these changes and any resultant market effects, including affordability and claims dynamics.