CHARLOTTE, N.C. — North Carolina’s auto insurance companies are asking for a significant increase in rates. They want to raise the average cost of car insurance by 22.6% across the state. 

This request was made Monday by the North Carolina Rate Bureau, which represents these companies.

The proposed rate hike is set to take effect on Oct. 1, but it first needs approval from the state’s Department of Insurance. Commissioner of Insurance Mike Causey has 60 days to review the request and decide if the increase is justified. If he disagrees, he can negotiate a different rate or call for a hearing to settle the matter.

This isn’t the first time insurance companies have asked for a big increase. In February 2023, they requested a 28.4% hike, but it was settled at a much lower rate of 4.5% per year for two years.

Jarred Chappell, the chief operating officer for the NC Rate Bureau, issued the following statement to WCNC Charlotte: 

“This request reflects the fact that vehicles and repairs are getting more expensive, partly because automakers pack so much technology into modern vehicles. Accidents have become more common, partly because distracted driving has eroded driving habits. Vehicle weights are up, and so is horsepower, both of which make accidents more severe. North Carolina has some of the lowest auto rates in the country, and an increase is needed to ensure a large number of companies want to write policies in the state.”

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