22.6% Car Insurance Rate Hike Rolls Closer For Nc Drivers | Insurify

Last February, the North Carolina Rate Bureau requested a 22.6% increase in auto insurance rates for Tarheel drivers. This week, that proposed increase took another step toward reality.

The rate bureau, which represents insurers across the state, presented its case for the increase to Mike Causey, North Carolina's Insurance Commissioner, at a hearing.

Dr. David Pooser, an associate professor of risk management and insurance at East Carolina University, told television station WITN that the rate bureau would make such a proposal if it believes its losses will rise soon.

Causey has previously opposed the rate increase, saying a 22.6% hike is too much for North Carolina drivers.

Drivers in the state pay the lowest average car insurance rates in the nation, averaging $1,056 per year for full coverage, according to Insurify data. An increase of 22.6% would mean an additional $238 per year, on average, to auto insurance premiums.

The next step in the path to higher rates

The rate bureau's original request for a rate increase, in February, had eyed an Oct. 1 start for the increase. That said, Causey's disagreement with the increase led to a hearing.

If the two sides can't agree on the rate increase, they could also negotiate a settlement. Such a negotiation occurred following a February 2023 filing. That filing saw insurers seek a 28.4% statewide rate increase. Regulators and the industry settled on a 4.5% increase for two years, instead.

What's next? Causey to review the bureau's request

State law allows Causey 45 days from the date of the hearing to determine the merit of the rate increase and issue a ruling. He can accept or reject the request, or the two sides could negotiate a settlement.

If he rejects the request, the rate bureau can appeal the decision to the North Carolina Court of Appeals and, if necessary, the state Supreme Court.

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