North Carolina drivers will face a smaller-than-expected increase in auto insurance rates this fall following a new settlement between Insurance Commissioner Mike Causey and the North Carolina Rate Bureau.
The agreement allows for a statewide average increase of 5% in automobile insurance premiums, which is 17.6 percentage points lower than the original request filed by the Rate Bureau in February. In contrast, motorcycle liability insurance rates will decrease by an average of 16.3% under the same settlement.
“With factors such as distracted driving, excessive speeding and increased automobile repair costs putting upward pressure on insurance rates, I am happy that we were able to hold the average increase to 5%,” Causey said in an announcement. “I’m also glad that the agreement will keep North Carolina’s average automobile premiums among the lowest in the nation.”
The North Carolina Rate Bureau, an independent body that represents insurance companies writing auto policies in the state, filed the rate request on Feb. 3. The Department of Insurance, led by Causey, negotiated the reduced rate hike.
The 5% increase will apply to both new and renewed policies beginning Oct. 1, while the 16.3% motorcycle liability reduction also goes into effect on the same date.
As a result of the settlement, a previously scheduled hearing on the matter for Sept. 22 has been canceled.
