Local News

State to Fight Requested Auto Insurance Rate Increase

Posted March 6, 2008

— The state Department of Insurance on Thursday said it would oppose a proposed 13 percent average increase in auto insurance rates.

Insurance Commissioner Jim Long set a June 30 hearing on the request by the North Carolina Rate Bureau, an independent organization representing all auto insurance companies doing business in the state.

“This year’s request is the largest since 1994, and once again we question the tactics used by the insurance companies in determining this amount,” Sherri Hubbard, the DOI’s lead rate attorney, said in a statement.

Long will decide at the hearing what rate change, if any, is warranted. The Rate Bureau can appeal his decision in court.


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  • duvler Mar 7, 2008

    That's all we need right now, we've already had a rise in gas prices, higher utilities and grocery bills, and now this.

  • JustAName Mar 6, 2008

    All I know is, I use USAA and while my parents in another state get their refund back on time every year, NC makes me wait. Thanks North Carolina.

    whatelseisnew, Find a new insurance company. It's not like there is a monopoly on insurance, you can switch to someone else. It's call competition. Would you want the state to tell your boss that you don't deserve a raise, because you make enough already?

  • TheBullCity Mar 6, 2008

    Actually, it usually goes, they request 10% increase and end up agreeing to a 3% decrease.

  • Gork Mar 6, 2008

    skidkid - don't you think companies who collectively write a billion dollars worth of auto coverage in this state would have thought about that? The whole point is, if they asked for the 8 or 9 percent they expect to get, instead of letting the rate bureau "go to bat" for 13 percent, we could avoid millions of dollars in administrative costs. Can someone explain the benefit to the public of the cost of the additional layer of bureaucracy in the rate bureau? And, "keeping those guys in line"??? Who funded his reelection campaigns forever?

  • Sidekick Mar 6, 2008

    They really want 5 percent, but will request 13 percent and Long will grant a 10 percent increase.

  • dukebbfan Mar 6, 2008

    Let's hope the increase doesnt happen. gas keeps going up and now they want to raise ins. rates well before long we will have to ride a bike or a horse to work. I dont know about yall but I am already insurance poor between car house and life.

  • skidkid269 Mar 6, 2008

    I'm amazed the insurance companies didn't wait until Long is out of office. He's done a great job of keeping these boys in line.

  • whatelseisnew Mar 6, 2008

    I think unless the Insurance Companies can show that they are actually losing money on Auto Insurance they should not get any rate increases. I would also like to see even more of a tilt towards those that have accidents pay even more than they get hit with now. Knock on wood, other tham a deer hit in 2000, I have never had a claim. Yet my insurance costs keep rising. It is a double whammy; my vehicles are worth less and less, but the costs keep going up. The legislature needs to change the laws as well. The insurance companies should not be allowed to raise the rates until after a rate increase is approved.

  • NC_VET Mar 6, 2008

    Another method to get more money to pay for Katrina losses.

  • Gork Mar 6, 2008

    This is an annual kabooke dance that is guaranteed to result in another victorious court settlement by DOI, saving citizens millions and issuing rebate checks just before an election. Helllllo? IT COSTS CITIZENS MILLIONS TO PLAY THIS GAME EVERY YEAR...

    Insurance companies will go ahead and implement the rate change they want (13%), DOI will tell them 8 or 9 percent is the most they can have, the companies will charge the full 13% but escrow 4 or 5 percent of that until the court decides, then refund the difference - just before an election. All that administration costs a couple of points that are unnecessary.

    COMBINE THE RATE BUREAU WITH DOI AND MAKE THEM WORK AS ONE, that would save the public millions of dollars.