KITTY HAWK, N.C. — For North Carolina drivers, a hike in their car insurance premiums might be coming.
State Commissioner of Insurance Mike Causey has scheduled a hearing for the North Carolina Rate Bureau's proposed average increase of nearly 23% statewide.
“The North Carolina Rate Bureau, back around the first of February, filed an increase in automobile insurance premiums, an average statewide was about 22.6% rounded up, 23% increase and so we did not agree to that," said Barry Smith, spokesperson for the state Department of Insurance.
Each year the NC Rate Bureau, which represents auto insurance companies in North Carolina, sends a proposal for changes to car insurance rates to the Department of Insurance.
It's not always an increase but has been in recent years.
Watch: North Carolina drivers could soon pay more for car insurance. Here's why.
“A couple years ago, the insurance companies requested an even larger increase, 28.4% and the result was a settlement of 4.5% per year over two years," said Smith.
Because Causey did not agree with the proposed 23% statewide increase, he has now scheduled a hearing for September. But between now and then a settlement could be reached, like it was last time.
“They will look at the data, and they will try to come up with what they feel like is fair," said Smith, about the process staff and commissioner at the Department of Insurance will now be taking.
Outer Banks drivers we spoke with said the same thing as they did when this proposal first was reported, they don't want car insurance costs to go up. Smith explained that it's Causey's job to make sure both sides are represented.
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“The commissioner's number one objective is to make sure that the consumers are being protected, that they're paying a fair rate, that it's not excessive, that it's not discriminatory. But also to make sure that the insurance companies are going to have adequate funds to pay their claims if you make a claim," said Smith.
The Rate Bureau continues to say rate increases are needed in the state to ensure a large number of companies will keep writing policies here. Chief Operating Officer of the NC Rate Bureau Jarred Chappell provided this statement to WTKR News 3.
"Setting a hearing date is part of the normal rate-making process, and as the commissioner noted negotiations will continue between now and then to see if a settlement can be reached. Our request reflects the fact that vehicles and repairs are getting more expensive, as anyone who's been to a car lot or visited a mechanic lately can attest. This is partly because automakers pack so much technology into modern vehicles, and that technology is expensive.
Unfortunately accidents have also become more common, partly because distracted driving has eroded driving habits. Vehicle weights are up, and so is horsepower, both of which make accidents more severe. North Carolina has some of the lowest auto rates in the country, and an increase is needed to ensure a large number of companies want to write policies in the state."
If a rate hike is approved, a date of when that starts impacting motorists will be included in the settlement, usually months after a settlement is approved.
