North Carolina drivers will see a 5% increase in auto insurance rates starting October 1, following a settlement reached between Insurance Commissioner Mike Causey and the North Carolina Rate Bureau.
The increase is significantly lower than the 22.6% hike originally proposed by the Rate Bureau in February. The agreement also delivers good news for motorcyclists, with an average 16.3% decrease in motorcycle liability insurance across the state.
Commissioner Causey said rising costs from distracted driving, speeding, and vehicle repairs contributed to the need for a rate adjustment.
“I’m happy we were able to limit the increase to 5%,” Causey said. “This agreement helps keep North Carolina’s average auto premiums among the lowest in the nation.”
The Rate Bureau, which represents insurers writing auto policies in the state, operates independently from the Department of Insurance. It filed the rate request on February 3.
With the settlement now in place, a public hearing originally scheduled for September 22 has been canceled.
The new rates will apply to all new and renewed auto insurance policies starting October 1.
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