North Carolina Rate Bureau Seeks Higher Car Insurance Rates

Car Insurance Policy

Car Insurance PolicyThe North Carolina Rate Bureau (NCRB) seeks a higher car insurance rate in the state, which may lead to an almost 14% increase by the end of 2017.

NCRB acts as the industry representative of all insurance companies operating in North Carolina. Its proposal may cover your next purchase of a new or used car for sale in Raleigh, Durham, Charlotte and other cities.

Although some motorists in the state believe that a double-digit increase appears to be an unattractive option, the bureau justified the plan with several factors.

Increasing Incidents

The proposed hike in car insurance rates partly stems from more drivers being involved in road accidents, according to an NCRB spokesperson. In 2015, road fatalities in North Carolina rose to 8.1% over the years, while injuries and reported vehicle crashes increased 11.8% and 11.1%, respectively.

State officials are negotiating with the NCRB to reach a settlement on the matter. In case discussions don’t succeed, a hearing will be required to address the rate filing, according to the state department of insurance.

State Deliberation

North Carolina’s regulators will need to decide within 60 days whether or not to approve the proposal. An approved rate increase is expected to be effective on Oct. 1. The last time a proposed increase gained approval took place in 2011 and 2002.

Some of the reasons that may have led the NCRB to seek higher insurance rates also included higher costs for insurance companies attributable to more expensive repairs for modern vehicles.

The chances of an increase in the insurance rate for cars in North Carolina remain uncertain, as there hasn’t been a rate hike for more than a decade. However, that’s not to say it will be rejected especially since certain policy changes by the North Carolina Insurance Commission may take place under Mike Causey’s leadership.