NC motorists face 28% premium rate hike request NC motorists face 28% annual premium rate hike request

North Carolina motorists could face a 28.4% hike in their annual automobile insurance premiums if a request made by the N.C. Rate Bureau is approved.

The N.C. Insurance Department announced Thursday the request has been submitted to Commissioner Mike Causey, with an effective date of Oct. 1.

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.

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

It is the bureau's first auto insurance premium rate increase request for private passenger motorists since Causey approved in March 2019 an average 1.6% increase that began on Oct. 1, 2019.

As part of that agreement, the bureau agreed to not make another hike request until at least 2021.

By law, the bureau must submit auto rate filings with the department every year by Feb. 1.

"Commissioner Causey and department staff will thoroughly review the filing and determine whether the requested increase is justified or not based on the data submitted," the department said in its news release.

"If the department does not agree with the requested increase, it can negotiate a settlement or call for a hearing."

The bureau, which was created by the state General Assembly, also makes rate requests for single-family, mobile homes and residential flood insurance premiums.

On Tuesday, Causey approved a statewide 9.9% dwelling rate increase.

Dwelling policies are offered to non-owner-occupied residences of no more than four units, including rental properties, investment properties and other properties that are not occupied full time by the property owner.

The bureau filed on Aug. 18 for a 42.6% increase.

The increase will take effect on new and renewed policies beginning on or after June 1.

The state is divided into 38 dwelling territories, which can combine adjacent cities and adjacent counties.

The highest average premium increase in any North Carolina territory would be $31.

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