North Carolina car insurance rates increasing by average of 5%

North Carolina's car insurance rates will increase by an average of 5% statewide, according to the Department of Insurance.

The increase will take effect on new and renewed policies on and after Oct. 1, according to the state.

The 5% increase is far less -- 17.6% -- than a nearly 23% increase requested by the N.C. Rate Bureau in February.

Mike Causey, the state's insurance commissioner, fought against the increase, announcing a settlement with the the N.C. Rate Bureau on Tuesday.

“With factors such as distracted driving, excessive speeding and increased automobile repair costs putting upward pressure on insurance rates, I am happy that we were able to hold the average increase to 5%,” Causey said. “I’m also glad that the agreement will keep North Carolina’s average automobile premiums among the lowest in the nation.”