North Carolina's drivers caught a break as Insurance Commissioner Mike Causey reached a settlement with the N.C. Rate Bureau, putting the brakes on a potential double-digit insurance rate increase. According to the Department of Insurance, this agreement caps the hike at an average of 5%, significantly lower than the original 22.6% proposed earlier in February this year.
The cost of being behind the wheel is climbing, with Causey pinpointing distractions at the wheel, pedal to the metal speedsters, and the ever-rising cost of auto repairs as culprits for the insurance surge, still North Carolina maintains one of the lowest auto insurance averages nationwide—and the recent negotiations are keeping it that way. The N.C. Rate Bureau, which represents insurers in the state, filed for the higher rates earlier this year but won't see those figures realized after the settlement.
Motorcycle riders might feel the need to rev their engines with more enthusiasm as the deal also includes a sizeable 16.3% decrease in motorcycle liability insurance rates, which, for many, is a much-welcomed change. This part of the settlement punctuates North Carolina's commitment to balancing the scales where possible, offering relief where the roads are less traveled.
There was a September 22 hearing looming over this matter, like dark clouds ready to burst over the Tar Heel State's drivers, but with the settlement now inked, there's no need for the legal gathering, saving potentially massive costs for all parties involved. The changes are set to steer into effect for new and renewed policies starting from October 1, giving policyholders a roadmap for what they can expect when it comes time to renew.
