North Carolina Auto Insurance

Bills advanced today that call for North Carolina auto insurance companies to disclose that policy holders are paying a surcharge to subsidize auto insurance coverage for NC drivers that are determined to be too risky to insure.

The bills, which are backed by the auto insurers, moved to the full House and Senate for consideration after winning committee approvals Tuesday morning.

North Carolina has the largest number of drivers in the reinsurance pool in the United States. When premiums paid by those drivers are insufficient to cover claims, a surcharge is added to everyone’s bill.

Last year premiums fell $249 million short of claims, triggering a surcharge of about 9.8 percent to auto liability premiums, or about $39 on average.

About 30 percent of the state’s driver’s are in the high-risk pool, versus an average of 1.9 percent in other states.