Auto Insurance Rate Increase in NC

Source: Insurance Journal



September 27, 2005



North Carolina Insurance Commissioner Jim Long opened hearings Monday in Raleigh, N.C. on a request to raise auto insurance rates by 9.6 percent.



The current annual premium for a driver of a 2004 Ford Taurus in Winston-Salem who drives 10 miles to and from work and does not have any insurance points on his record is $875.92, according to the Department of Insurance.



Long, who presides over the hearings, will decide what, if any, rate change is warranted. The North Carolina Rate Bureau, an independent group that represents auto-insurance companies in the state, can appeal Long's decision through the courts.



Companies can raise rates while awaiting the results of its appeal process. But if the bureau loses its appeals, companies must refund the money to policyholders.



Hearings usually take five to six weeks, Chrissy Pearson, an insurance department spokeswoman told the Winston-Salem Journal.



The department said that rate decreases have been ordered by Long in 10 of the past 20 rate requests. In five other years, Long decided on no change in rates.



This year the insurance industry originally requested an 11.5 percent increase, but that was cut to a 9.6 percent increase because of a data error.



Hearings were scheduled because the insurance department and the Rate Bureau were unable to negotiate a settlement on the request.