NC Auto Insurance Rates Set to Rise 5% This Fall

The agreement also includes an average statewide 16.3% decrease on motorcycle liability insurance rates.

Unrecognizable woman signing rental contract — Source: bymuratdeniz / Getty

North Carolina drivers will see a statewide auto insurance rate increase averaging 5% starting Oct. 1, following a settlement between state regulators and the insurance industry.

The agreement, announced Monday by Insurance Commissioner Mike Causey, is a significant reduction from the 23% average rate hike originally requested by the North Carolina Rate Bureau earlier this year.

The settlement avoids a scheduled rate hearing that was set for Sept. 22 and will apply to both new and renewed auto insurance policies across the state.

“With factors such as distracted driving, excessive speeding and increased automobile repair costs putting upward pressure on insurance rates, I am happy that we were able to hold the average increase to 5%,” Causey said in a news release. The automobile premium rates will remain among the lowest in the nation, the Republican elected commissioner said.

Source: AP News