NC auto insurance rate hikes to rise 4.5% in 2023, 2024

Mike Causey, the state's Insurance commissioner, announced Tuesday a settlement for private passenger vehicles and motorcycles that will go into effect for new and renewed policies on or after Dec. 1.

For private passenger vehicles, there is an average statewide auto rate increase of 4.5% for both 2023 and 2024.

For motorcycles, it is 2.3% in both 2023 and 2024.

By comparison, the bureau sought an average statewide hike of 28.4% for private passenger vehicles and 4.7% for motorcycle liability.

The bureau is an independent group representing insurers writing policies in North Carolina.

It typically asks for rate increases - some substantially higher in areas prone to damage from natural disasters, such as hurricanes, floods and winter storms.

However, the insurance commissioner typically seldom agrees to a rate anywhere close to the bureau's full request.

The rate requests are made by territory and listed by ZIP codes. Some counties, such as Davidson and Guilford, are split into two or more territories.

The 350 territory consists primarily of Davie and Forsyth counties, along with the Forsyth portion in Colfax, High Point and King. The 350 territory also includes nine ZIP codes in Greensboro, as well as all of Jamestown, Summerfield and Oak Ridge.

The 340 territory consists of 19 ZIP codes in Greensboro and six in High Point, while the 320 territory consists of communities in Alamance, Davidson, Guilford, Randolph, Rockingham, Stokes, Surry, Wilkes and Yadkin counties.

The 360 territory includes Lexington, Thomasville, Wallburg and Welcome, while the 370 territory includes Linwood and the 480 territory Alleghany, Ashe and Watauga counties.

The Insurance Department estimates the settlement will save drivers about $1.6 billion over the next two years compared with the bureau request.

"In recent years, we've seen some rate increases due to more accidents and fatalities in North Carolina," Causey said. "This can be attributed to factors, such as excessive speeding and driving under the influence.

"However, the No. 1 cause of accidents and, thus, rate increases, is distracted driving. It is unlikely that we will see rate decreases in the future unless some of these trends change."

According to a 2023 study from U.S. News and World Report, North Carolina ranked as the sixth lowest state in average annual automobile insurance costs.

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