Insurance companies request 28.4% rate increase for auto insurance in North Carolina

Insurance companies want to raise drivers’ rates for car insurance.

The North Carolina Rate Bureau represents insurance companies in their dealings with state leaders. The bureau submitted a filing to the North Carolina Department of Insurance to increase prices on auto policies statewide by 28.4%, North Carolina Insurance Commissioner Mike Causey announced Thursday.

Any change would become effective on Oct. 1.

Causey is set to review the request to determine whether the requested increase is justified and to negotiate with the rate bureau.

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

North Carolina law requires the bureau to submit auto rate filings with the department each year by Feb. 1.

A ValuePenguin study cited an S&P data report showing North Carolina’s annual car insurance rate changes compared to the previous year:

2017: 4.1%

2018: -0.8%

2019: 0.7%

2020: -1.3%

2021: -0.3%

2022: 3.7%

In 2022, consumer financial services company northcarolina/”>Bankrate found the average North Carolina car insurance cost is $1,392 each year for full coverage and $431 annually for state minimum coverage limits.

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