North Carolina drivers could soon pay more for car insurance. Here’s why

KITTY HAWK, N.C. — Drivers in North Carolina could see some kind of increase on their auto insurance rates this year.

Auto insurance companies are seeking a 22.6% average increase statewide. The North Carolina Rate Bureau recently put in the request to the North Carolina Department of Insurance.

“Probably the number one pressure is distracted driving,” said Barry Smith, spokesman for the NC Department of Insurance.

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Though the Department of Insurance will be discussing this proposal over the next couple months, the decision will ultimately come down to Commissioner of Insurance Mike Causey.

“Every time since I’ve been here [for] almost eight years that we’ve gotten an increase, we have not approved the rates,” said Smith.

Though the proposed rate is not usually what is approved, it could then go to a hearing. But most of the time, a settlement is usually agreed on, which is what happened a few years ago.

“A couple years ago, the same organization, the auto insurance companies, requested a 28.4% increase. Commissioner Causey, he said no to that. There was negotiated a settlement, which was 4.5% per year for two years,” said Smith.

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An increase in repair costs and the presence of distracted driving are a couple of the reasons why auto insurance companies are seeking this increase.

“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,” NC Rate Bureau Chief Operating Officer Jarred Chappell said in a statement.

Outer Banks locals we spoke with weren’t too happy to hear this is being proposed. One even said he keeps on eye on costs and recently switched his insurance company.

The Commissioner of Insurance has the next two months to weigh in on a decision of how to proceed.