North Carolina drivers will pay more for auto insurance, but not as much as first proposed. Insurance Commissioner Mike Causey announced a new settlement with the NC Rate Bureau.
The agreement means an average statewide increase of 5%. This is 17.6% less than the original 23% rate hike requested by the Rate Bureau, which represents insurance companies.
A hearing had been scheduled to discuss the proposed 23% increase, but Commissioner Causey confirmed the hearing has now been canceled due to the settlement.
The Department of Insurance explained that many factors influenced the decision, including distracted driving, excessive speeding, and rising repair costs.
A spokesperson from the Department of Insurance called the settlement a positive outcome for drivers in the state.
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