N.C. Auto Insurance Rates To Fall 15 Percent

N.C. Auto Insurance Rates To Fall 15 Percent

NU Online News Service, April 4, 11:56 a.m. EST?The North Carolina Department of Insurance announced a settlement over auto insurance rates that it said could save consumers nearly $500 million in premiums.

Jim Long, the state's insurance commissioner, said an agreement reached between the Insurance Department and the North Carolina Rate Bureau will mean a 15 percent rollback in auto insurance rates effective July 1.

NCRB, based in Raleigh, N.C., is an independent organization that represents the state's property-casualty insurers. The group was initially only willing to make a smaller, 10 percent cut in private passenger liability rates before agreeing to a settlement with the insurance department.

"After several years of telling the Bureau that they are charging too much, I'm happy to see that they are beginning to listen to me," said Mr. Long.

"North Carolina drivers should not have to pay higher premiums than necessary, and the rate-making process can be long and drawn out. I am pleased that we were able to reach an agreement this year so consumers can begin seeing savings soon."

According to the department, the rollback savings for many consumers could amount to hundreds of dollars every year. Insureds who pay around $1,200 for auto coverage, for example, would see premiums come down to about $1,000 per year.