North Carolina Sets 5% Average Auto Insurance Rate Increase Effective Oct. 1

North Carolina will implement a 5% average increase in auto insurance rates statewide starting October 1, following a settlement between state insurance regulators and the insurance industry. This agreement significantly lowers the initially proposed 23% hike requested by the North Carolina Rate Bureau earlier in the year. In addition to auto insurance, motorcycle liability insurance rates will see an average statewide decrease of 16.3%. The new rates will affect both new and renewed policies across North Carolina and are influenced by factors such as distracted driving, excessive speeding, and rising automobile repair costs. Despite the increase, the state's automobile insurance premiums are expected to remain among the lowest in the U.S.