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Tuesday, April 16, 2024

Auto insurance rates to rise 4.5% in North Carolina

State insurance regulators and the auto insurance industry have agreed on a 4.5% increase in premiums for later this year and in 2024.

The agreement also includes motorcycle rate increases of 2.3% in 2023 and 2.3% in 2024.

The N.C. Rate Bureau, which represents the industry, had requested an overall average statewide increase in of 28.4% for private passenger auto rates and 4.7% for motorcycle liability. The difference in what the industry requested and what regulators approved is $1.6 billion in premiums.

“I’m proud that North Carolina is consistently among the lowest annual average rates for private passenger vehicles in the nation,” says Insurance Commissioner Mike Causey in a statement. “In recent years, we’ve seen some rate increases due to more accidents and fatalities in North Carolina. This can be attributed to factors such as excessive speeding and driving under the influence.”

The settlement cancels a hearing scheduled for later this year.

According to a 2023 study from U.S. News and World Report, North Carolina ranked as the sixth lowest state in average annual automobile insurance costs. Insurers are expected to raise car insurance premiums by an average of 8.4% in 2023 across the country after a slight 0.6% increase in 2022, according to ValuePenguin, a subsidiary of Charlotte-based LendingTree.

The increase will take effect on new and renewed policies beginning on or after Dec. 1. By law, the bureau must submit auto rate filings with the department every year by Feb. 1.

State Farm is the largest auto insurer in the state, with a 14.6% market share. Progressive, the North Carolina Farm Bureau and Berkshire Hathaway’s GEICO all have more than 10% of the $3.7 billion auto insurance market.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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