View this article online: https://www.insurancejournal.com/news/southeast/2023/08/09/734711.htm
North Carolina’s insurance commissioner has negotiated a smaller increase on auto insurance rates than the state’s rating agency had requested.
The North Carolina Rate Bureau in February requested an average increase of 28.4% for private passenger auto insurance and a 4.7% rise for motorcycle liability coverage. But after some negotiation, Commissioner Mike Causey said his office was able to arrive at an average statewide hike of 4.5% for auto and 2.3% for motorcycle this year, with an identical increase in 2024.
The rate will take effect on new and renewed policies starting Dec. 1.
The auto rate was announced a week after the Rate Bureau requested a 50.6% increase in dwelling policies for rental and other non-owner-occupied properties. That rate is expected to be reduced after negotiations later this year.
The Rate Bureau regularly makes requests, based on actuarial determinations, that end up being much higher than the final increase. In August of 2022, for example, the bureau asked for a 42.6% increase in dwelling policy rates but the DOI reached a settlement for a 9.9% average increase.