RALEIGH, N.C. (WNCN) — The North Carolina Rate Bureau has filed a request with the state Department of Insurance to increase auto policies, according to state Insurance Commissioner Mike Causey
The bureau asked for a 28.4% statewide increase in private passenger auto insurance. If approved, it would become effective on Oct. 1.
“We want to make sure that the consumers are being afforded a fair rate,” said Barry Smith, deputy director of Communications/Safety Officer for the Department of Insurance. “It’s also important that the automobile insurers are able to make a living.”
The bureau represents car insurance companies in the state and is not a part of the state Department of Insurance. State law requires the bureau to submit auto rate filings with the department each year by Feb. 1.
According to the personal finance company Bankrate, the average annual full-coverage premium in Raleigh this year is $1,359. The 28.4% increase would raise it to $1,744.96, meaning a monthly payment would go from $113.25 to $145.41.
“Whatever rates do get approved, that will be the base rate,” Smith said. “That doesn’t mean everybody will pay what that ends up being,” Smith said.
Causey stated that he and members of the department’s staff will review the filing and determine whether the increase is justified.
The department said that if they do not agree with the requested increase, they can negotiate a settlement or call for a hearing.
“This is a request,” Smith said. “This is nowhere near being approved or anything like that. Our actuaries, our legal experts, our experts in property and casualty insurance are reviewing those figures and there are hundreds of pages.”