North Carolina drivers will be facing insurance premium rate hikes for 2023 and 2024, although they won’t be as high as initially requested. The state’s Insurance Commissioner, Mike Causey, announced a settlement that will go into effect for new and renewed policies on or after December 1. The settlement includes an average statewide auto rate increase of 4.5% for both 2023 and 2024 for private passenger vehicles, and a 2.3% increase for motorcycles in both years.
These rate increases are significantly lower than what the N.C. Rate Bureau had requested. The bureau, an independent group representing insurers writing policies in North Carolina, sought an average statewide hike of 28.4% for private passenger vehicles and 4.7% for motorcycle liability. However, it is worth noting that the Insurance Commissioner rarely agrees to rate increases anywhere close to the bureau’s full request.
The rate increases vary based on territory and are listed by ZIP codes. Some counties like Davidson and Guilford are split into multiple territories. The settlement estimates that it will save drivers about $1.6 billion over the next two years compared to the bureau’s request.
The Insurance Commissioner attributes the rate increases to factors such as excessive speeding, driving under the influence, and distracted driving. While North Carolina ranked as the sixth lowest state in average annual automobile insurance costs according to a 2023 study from U.S. News and World Report, it is unlikely that there will be rate decreases in the future unless there are changes in these trends.
The announcement from the Insurance Commissioner comes as North Carolina drivers prepare for higher insurance costs in the coming years. However, the settlement provides some relief compared to the initially requested rate hikes. It remains to be seen how these rate increases will impact drivers’ budgets and the overall insurance market in the state.
