N.C. Rate Bureau requests 28.4 percent increase in auto insurance rates

N.C. Rate Bureau requests 28.4 percent increase in auto insurance rates

February 2nd, 2023

Insurance Commissioner Mike Causey on Thursday announced that the North Carolina Rate Bureau has submitted a rate filing with the N.C. Department of Insurance, requesting an increase for auto policies.

In the filing, the bureau has requested an overall average statewide increase in private passenger auto insurance rates of 28.4 percent, which would become effective on October 1, 2023.

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 every year by February 1.

The average cost of car insurance in North Carolina is $1,392 per year for full coverage and $431 per year for minimum coverage, according to Bankrate’s 2022 study of quoted annual premiums from Quadrant Information Services.

The filing includes a statewide average liability insurance rate level increase of 31.4 percent for non-fleet private passenger automobiles, a statewide average physical damage insurance rate level increase of 25.5 percent for non-fleet private passenger automobiles, and a statewide average liability insurance rate level increase of 4.7 percent for motorcycles.

The state is divided into 34 rate territories, with northeastern North Carolina split into a pair of separate territories.

The requested rate increases for territory 110 (Dare, Currituck, Camden, Pasquotank counties) are 28.6 percent for 30/60 bodily injury, 42.9 percent for $25,000 property damage, 36.9 percent for 30/60/25 combined, 20.8 percent for full coverage comprehensive and 18.9 percent for $100 deductible collision. $500 medical pay would drop by 13.3 percent.

In territory 120 (Perquimans, Chowan, Tyrrell, Gates, Bertie, Hertford counties) the proposed increases are 17.2 percent for 30/60 bodily injury, 44.6 percent for $25,000 property damage, 31.3 percent for 30/60/25 combined, 13.7 percent for full coverage comprehensive and 21.6 percent for $100 deductible collision. $500 medical pay would decrease 10.5 percent.

According to a press release, Causey and the department’s staff will thoroughly review the filing and determine whether the requested increase is justified or not based on the data submitted.

If the department does not agree with the requested increase, it can negotiate a settlement or call for a hearing.

Posted in BIZ
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