Companies that offer auto insurance in North Carolina are asking for another rate hike starting this fall, two years after a settlement was reached on an increase of 4.5% in each of the last two years.
For drivers that live along the Outer Banks and in mainland northeastern North Carolina, the North Carolina Rate Bureau is asking for comprehensive coverage rates to increase between 62% and 66% for new and renewing policies starting October 1.
The request follows a new state law that went into effect on January 1 that increased the minimum liability limits for auto insurance in North Carolina to $50,000 for one person and $100,000 for two or more people per accident
The new law also increased property damage coverage to $50,000.
The Rate Bureau represents the automobile insurance companies in the state and is not a part of the North Carolina Department of Insurance.
“This request reflects the fact that vehicles and repairs are getting more expensive, partly because automakers pack so much technology into modern vehicles,” said N.C. Rate Bureau Chief Operating Officer Jarred Chappell.
“Accidents have become more common, partly because distracted driving has eroded driving habits,” Chappell said. “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,” Chappell said.
State law gives Commissioner of Insurance Mike Causey 60 days to review the rate request to determine if the increase is justified based on the data submitted.
If Causey does not agree with the requested increase, he and the Department of Insurance can negotiate a settlement or call for a hearing. If the case goes to a hearing, a hearing officer would make a ruling on the request.
Causey did not comment on the filing in Tuesday’s press release.
In Territory 110, which includes all of Dare, Currituck, Camden and Pasquotank counties and Ocracoke Island, a $50,000/$100,000 liability bodily injury policy would increase by 8.4% to a base rate of $236; a $50,000 property damage policy rises 20.7% with a base rate of $334; and a combined policy increases by 15.3%.
A medical payment policy with a $500 deductible in Territory 110 would drop by 0.3% to a base rate of $13; a full coverage comprehensive physical damage policy increases by 65.8% to $219, and a $100 deductible collision policy increases by 3% to $669.
In Territory 120, which includes mainland Hyde County and the rest of the northeast corner of the state, a $50,000/$100,000 bodily injury policy increases by 13.9% with a $283 base rate; a $50,000 property damage policy rises 24.4% to $329; and a combined policy increases by 19.3%.
The medical payment policy with a $500 deductible in Territory 120 decreases by 0.2% to $17; full coverage comprehensive physical damage policy increases by 62.4% to $363; and a $100 deductible collision policy goes up 1.1% to $772.
The statewide average increase requested is 22.6%, with a statewide average liability insurance rate level increase of 21.9% and 23.4% for physical damage, while the statewide liability rate for motorcycles would drop by 9%.
The 1,329-page filing submitted Monday follows a 2023 request by insurance companies for a statewide 28.4% increase, which was negotiated down to a 4.5% increase per year for two years for all territories in the state.
According to BankRate.com, the average cost of full coverage car insurance in North Carolina in 2025 is $2,047 per year, or $171 per month, while minimum coverage is $619 per year, or $52 per month.
U.S. News and World Report consistently ranks North Carolina as having the sixth-lowest average car insurance rates in the nation.
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