There are several bills pending in the state Legislature that would revamp the way the state sets auto rates and give insurers more latitude — up to 15 and 20 percent —to raise rates.
North Carolina’s auto rate system is unlike any other in the country. All 175 insurers file their rate plans with the North Carolina Rate Bureau, which proposes a statewide base rate on behalf of all companies. The commissioner can then place a cap on rates. Companies can only adjust individual policies by offering discounts.
North Carolina has among the lowest auto insurance rates in the country, according to the National Association of Insurance Commissioners and Insure.com.
North Carolina Insurance Commissioner Wayne Goodwin says the current system helps all consumers and those backing changes just want to make more money off North Carolina drivers. “The bottom line here is this: insurance companies want more of your money. These proposals would no doubt lead to higher car insurance rates.”
For more information on this proposed legislation, read this article posted by Insurance Journal.