Rate Bureau requests to boost rates on NC auto insurance

by TERESA OPEKA Carolina Journal

It’s been more expensive to fill up your gas tank in North Carolina in the past two years, and now, it may be even more expensive to insure the vehicle you drive. How much more? How about 28.4 percent?

That is the amount the North Carolina Rate Bureau is requesting with the N.C. Department of Insurance.

The average cost for car insurance in the state is $1,392 for annual coverage, which is below the national average of $1,771 per year for full coverage, according to Bankrate.com. A rate increase of 28.4 percent would bring the cost up to $1,787 or a monthly rate of $118 to 148.92.

In a press release, Insurance Commissioner Mike

Causey announced recently that the request for an overall average statewide increase in private passenger auto insurance rates would become effective on Oct. 1, if approved.

The N.C. Rate Bureau represents the auto insurance companies in the state and is not a part of the N.C. Department of Insurance.

By law, the bureau must submit auto rate filings with the department annually by Feb. 1.

While such a significant increase is not likely, an increase of some type is likely.

According to a report from research firm ValuePenguin, rates are expected to increase by 8.4 percent across the U.S. NC’s insurance rates low by comparison North Carolina ranked 44th in the nation, according to the report. Michigan had the highest cost at $4,788 for the year, and Vermont had the lowest at $1104. Overall, the state fares pretty well for drivers. See RATE, Page 2