Insurance Commissioner Mike Causey today announced that the Department of Insurance has received the annual auto insurance rate filing from the North Carolina Rate Bureau. The Bureau, which represents the auto insurance companies in the state, requested an overall statewide average increase of 13.8 percent for 2017.
This rate filing is the first auto rate filing the Department of Insurance has received from the Rate Bureau since 2009. The last auto rate increases occurred in 2001 and 2002 but were wiped out by the rate decrease that occurred in 2003.
The filing will be reviewed by Department officials in the coming months. If officials do not agree with the requested rates, they will be negotiated with the North Carolina Rate Bureau. If a settlement cannot be reached within 60 days, a hearing will be called.
Settlements have been reached on rate filings in the past but if the case goes to a hearing, the hearing officer will rule on rates and any appeal would go through the court system. The rates set in these cases represent the highest amount allowable for all companies to charge. Companies can and regularly do offer discounts to their policyholders.