Post Date May 17, 2013 - The changes to the North Carolina auto insurance system were turned down last week at the NC House of Representative committee level. The proposal was recommended to allow North Carolina auto insurance companies to individually control their premiums. This will give them the ability to raise or lower them by 7% annually. The proposal will bypass the current NC Auto Insurance System which the North Carolina State’s Rate Bureau wherein insurers are represented and collectively files for premium changes to the North Carolina Insurance Department. The North Carolina insurance commissioner will review the rate filings and decide whether to approve the rates or not.
North Carolina Auto Insurance Laws Could Change
After the NC Insurance chief Wayne Goodwin argued the proposal will just raise North Carolina auto insurance premiums, the House insurance committee voted 18 to 11 to bury the bill. Even the insurers were divided on the proposed overhaul. Goodwin admitted that although the current North Carolina auto insurance system is not perfect, the proposed measures would hurt the current system that is working well for both NC auto insurance companies and North Carolina Auto Insurance Customers. Though the proposal may present itself to be advantageous to insurers, it could have bring good to drivers as it could have put a stop on the extra charges that North Carolina Drivers are paying to make up for the states high risk drivers.
Among the top North Carolina Auto Insurance carriers which support killing if the bill are State Farm, Geico and Progressive, and among others. One Insurance lobbyist argued that the proposal will put balance on the true cost of covering the around 7 million insured cars & trucks in North Carolina, and will lower the insurance cost of around 85 percent of the state drivers. Those who have shown strong opposition to the bill are insurers N.C. Farm Bureau, AAA North Carolina, and the state’s current largest car insurance carrier, Nationwide. Insurance Company.
Michael E. Dortch
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