North Carolina to see average statewide auto insurance rate increase of 5%
North Carolina will see an average statewide increase of 5% on vehicle insurance rates following a settlement between Insurance Commissioner Mike Causey and the North Carolina Rate Bureau, according to a press release issued Monday by Causey’s office.
The settlement is 17.6 percentage points below the 22.6% increase requested by the Rate Bureau in February. The settlement also includes an average statewide 16.3% decrease in motorcycle liability insurance rates.
“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 the release. “I’m also glad that the agreement will keep North Carolina’s average automobile premiums among the lowest in the nation.”
The increase will take effect on new and renewed policies beginning Oct. 1.
A hearing that was set for Sept. 22 has been canceled, the release says.
Causey announced in April that he disagreed with the nearly 23% rate increase and was setting a hearing for September.
Car insurance costs increased by 24% in 2023 and 15% in 2024, according to a recent report by Insurify. It states an additional 5% increase is expected in 2025.
The average cost of car insurance annually in 2024 was $2,313, the report says. It projects the annual cost for 2025 to be $2,435.
As Causey pushes back against rising insuranc costs, a federal subcommittee has been investigating insurance claims handling.
Last month, Sen. Josh Hawley (R-Missouri) grilled Allstate and State Farm executives during a subcommittee hearing about evidence that he said made it appear the companies were “running a racket” in their response to natural disasters. In contrast, their executives were paid in the millions.
“I have to notice that your profits have never been better, they’re really quite extraordinary,” Hawley said. “Fiscal year ’24, Allstate had $64 billion in revenue; that’s 12% above the previous year. You made $4.6 billion in profits, and your CEO, Tom Wilson, last year was paid $26 million, while Miss Migal can’t get her claim paid out, but Tom Wilson, whoever the heck he is, gets $26 million.”
The top five paid property and casualty insurance executives made more than $114 million in 2024, according to a list compiled by Business Insurance.
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