The North Carolina Rate Bureau has filed for a statewide average 22.6% rate increase for personal automobile insurance, with proposed changes set to take effect for policies starting Oct. 1, according to the state’s Department of Insurance.
Insurance Commissioner Mike Causey (pictured above) has 60 days to review the request to determine whether it is justified. If he rejects the proposal, the process could move into negotiations or result in a hearing.
A similar situation occurred in 2024 when Causey denied a 42% average increase request for homeowners insurance, leading to a series of hearings that ultimately lowered the approved increase to 7.5%.
“North Carolina homeowners will save approximately $777 million in insurance premiums over the next two years compared to what the insurance companies requested,” Causey said.
These rate increases, reported last month, are set to take effect on June 1 of 2025 and 2026.
The filing includes varied increases across different coverage types, a report from AM Best said. The largest requested increase is 75.8% for comprehensive physical damage coverage. The bureau is also seeking a 3.7% increase for collision coverage.
For liability coverages, the proposal includes a 47.6% increase for uninsured motorists and a 41.1% increase for underinsured motorists. Property damage coverage is set for a proposed 26.7% increase, while bodily injury coverage has a 13% requested increase. Medical payments coverage has the smallest proposed change, at 0.4%.
Motorcycle insurance rates are the only category with a proposed reduction, with a 9% decrease recommended.
Historically, Causey has denied all rate increase requests, according to Jason Tyson, communications director for the North Carolina Department of Insurance.
In 2023, the commissioner rejected a 28.4% personal auto rate increase request, ultimately negotiating a lower average increase of 4.5% for 2023 and 2024.
While the department has not commented on the latest request, Tyson noted that personal auto rates are generally influenced by factors such as distracted driving, speeding, driving while impaired, and rising vehicle repair costs.
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