NORTH CAROLINA — This year, insurance companies in North Carolina are requesting a 23 percent hike in your car insurance bill. That could start in October.
But a new law that kicks in this summer could raise your bill even higher.
Channel 9′s Scott Wickersham says if you have liability-only coverage – or a teen driver, like 15-year-old Ryder Polston – you’ll feel it even more.
Polston is learning to drive at TLC Driving School in Stallings.
“It was a little nerve-wracking at first but then I got used to it pretty quick,” Polston tells Channel 9.
As a mother of three boys, his mom is wondering how much her car insurance will be going up.
“I know it’s going to be more. Teenage boys I understand are higher,” Lauren Polston says.
The extra cost could last longer. New drivers are considered inexperienced for three years now.
After July 1, they’ll carry that label for eight years – opening the door to higher premiums for longer.
To cut your cost, you can:
- Bundle their policy with yours for a group discount
- Buy them a cheap car – they cost less to cover
- Increase your deductibles in exchange for a lower rate
Another change in law this July – minimum coverages for liability-only insurance, which about one in five drivers have:
- From $30,000 to $50,000 for injuries to one person
- $60,000 to $100,000 for injuries to more than one person
- Property damage coverage from $25,000 up to $50,000
“We have seen a spike in uninsured motorists across the country in recent years,” Mark Friedlander, an expert with the Insurance Information Institute, tells Channel 9.
Friedlander says about 14 percent of cars on the road today have no insurance at all.
The new minimum coverage may only raise liability-only rates by $10-15 a month.
But coupled with recent inflation, the number of uninsured drivers in North Carolina could go higher.
“All types of expenses have gone up. And unfortunately, some are choosing between food on the table and paying for an insurance policy,” Friedlander says.
Still, he calls the change necessary. “We’ve seen a significant increase in the cost of repairing vehicles, in medical treatments costs for accident victims. Previous limits were not adequate,” Friedlander says.
Polston is focused on her son driving safely right now. But her insurance coverage is something she’ll be taking a second look at.
“I think I will definitely shop it around. This being new territory for me, I will want to weigh my options,” Polston says.
Bankrate gives each state a ranking, based on how much of the average income goes toward car insurance.
The Carolinas are about in the middle, with North Carolina at 21 and South Carolina at 24.
Hawaii is the cheapest and the most expensive is Louisiana.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.