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N.C. auto insurance companies ask for an overall 1.4 percent rate hike
Story Date: 2/19/2009
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Source: NC Dept. of Insurance, 2/18/09
Insurance Commissioner Wayne Goodwin today announced that the Department has received the annual auto insurance rate filing from the North Carolina Rate Bureau. The Bureau, which represents the auto insurance companies writing business in the state, requested an overall statewide average increase of 1.4 percent for 2009.
The filing comes at a time when the industry and the Department are at odds about last year's auto rate order. A 16.1 percent decrease was ordered last September by former Commissioner Jim Long, which the industry is currently appealing through the court system. In the meantime, insurance companies are charging an increased rate of 9.4 percent over 2008's ordered decrease. The difference between what was ordered and what companies charge will remain in escrow until the courts reach a decision. If the courts rule in the Department's favor, the escrowed monies will be refunded to policyholders.
This year's filing is for a 1.4 percent increase on top of the already-debated 9.4 percent increase.
"If the Bureau and my Department cannot agree on a settlement for these filed rates, I will call for a hearing for later this year," said Commissioner Goodwin. "Because of my potential role as hearing officer, I cannot comment on the rate requests, but my staff and I will review the filing in the coming weeks and determine if a hearing is necessary," said Commissioner Goodwin, who is required by law to remain unbiased in such cases.
The Department of Insurance has consistently issued small or no rate increases and in many cases has ordered rate decreases. Combined, this has potentially saved drivers an estimated $5.7 billion.
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