auto Insurance rates to fall for some drivers

From Charlotte Observer

ANDREW SHAIN
Consumer Writer

Top North Carolina auto insurance rates will fall in May by 2.5 percent statewide and 4.5 percent in Charlotte, the state insurance commissioner said Wednesday.
But most drivers won't pay less because insurers will likely keep rates steady for customers with discounts. An estimated 75 percent of the state's 6 million policyholders get discounts for having good driving records and credit histories, and home insurance with the same company.
Most insurers likely will keep auto rates steady for those customers, said Ray Evans, director of the N.C. Rate Bureau, which represents insurers. The average discount is about 15 percent.
On Wednesday, insurers proposed an average 6.7 percent rate increase statewide to start Oct. 1. Insurers are required to propose rate changes by Feb. 1. Insurance Commissioner Jim Long usually reduces insurers' request.
In the May 15 rate change, some cities will see bigger drops than Charlotte: Greensboro (5.7 percent), Asheville (5.1 percent) and Wilmington (5.5 percent), according to state Department of Insurance figures. Raleigh rates will fall 4.3 percent.
The driver of a new Chevrolet Impala in Charlotte will save $50 in annual premiums based on maximum rates, the department said. The same driver would save about $45 in Raleigh and Asheville, and about $60 in Wilmington and Greensboro.
Charlotte has the state's second-highest auto insurance rates because of the amount of miles motorists drive, Long said.
Insurers originally sought an average rate increase of 9.4 percent statewide to pay for rising medical expenses. Long has final say on rates after hearing from the Rate Bureau and insurance department staff. Long ordered a 15 percent decrease in 2003 and no change last year.
Rate changes apply to all 600 car insurers in North Carolina. In South Carolina, insurers seek rate changes individually.