The North Carolina Rate Bureau has proposed a 22.6% statewide average increase in personal auto insurance rates for policies effective Oct. 1, according to the state’s insurance regulator.
Insurance Commissioner Mike Causey has 60 days to evaluate the request and determine whether it is justified, the North Carolina Department of Insurance stated.
If Insurance Commissioner Mike Causey does not agree with the requested increase, he and the Department of Insurance can negotiate a settlement or call for a hearing (see TOP 50 Largest U.S. Auto Insurance Companies).
Settlements have been reached on automobile rate filings in the past. If the case goes to a hearing, a hearing officer would make a ruling on the request.
This rate filing follows a February 2023 filing in which the insurance companies requested a statewide 28.4% increase. That filing resulted in a settlement of an overall average 4.5% increase per year for two years.
A similar process occurred last fall when Causey denied a 42% average homeowner rate increase. After months of hearings, the request was reduced to 7.5%.
The filing seeks the largest increase—75.8%—for comprehensive physical damage coverage. It also requests a 3.7% increase for collision coverage (see TOP 50 Largest U.S. Passenger Auto Liability Insurers).
For liability, the bureau proposes hikes of 47.6% for uninsured motorists and 41.1% for underinsured motorists. The request also includes a 26.7% increase for property damage, 13% for bodily injury, and 0.4% for medical payments. Motorcycle rates, however, would decrease by 9%.
Causey has consistently denied rate hike requests, Jason Tyson, the insurance department’s communications director, said in an email. In 2023, he rejected a 28.4% personal auto rate increase, negotiating it down to an average 4.5% for 2023 and 2024.
While the department has not commented on the latest request, Tyson noted that auto insurance rates are generally affected by factors such as distracted driving, speeding, DWIs, and repair costs.
In January, North Carolina home insurance rates will rise by an average of 7.5% in both 2025 and 2026. This increase is significantly lower than the 42.2% average hike initially proposed by the North Carolina Rate Bureau, following negotiations led by Insurance Commissioner Mike Causey.
The new rates will take effect on June 1 of each respective year, according to the North Carolina Department of Insurance. Some areas faced potential increases of up to 99.4%, but Causey described the final settlement as a major victory for homeowners.
The agreement also limits rate hikes to 35% in any region and prevents the bureau from seeking another increase until June 2027.
Causey noted that the adjusted rates would still provide insurers with enough revenue to cover claims, despite the rising costs of reinsurance and the financial impact of natural disasters.
