North Carolina Auto Insurance Rates to Drop Plus Refunds

According to the article “NC Auto Insurers to cut rates, provide refunds” from the Triangle Business Journal, North Carolina insurance commissioner Wayne Goodwin signed a settlement with the NC Rate Bureau ensuring that North Carolina auto insurance rates will be set back to just below 2006 levels. In addition, up to $50 million in refund checks will be paid out to policyholders. The rate bureau represents auto insurance companies throughout NC.

This settlement will eliminate the 9.4% increase that occurred last year as well as reduce rates by another .5% this year. Also part of the agreement is that the bureau cannot file for changes to auto insurance rates until 2011. Goodwin’s office figures this will save NC policyholders around $545 million in premiums.

The refund checks will start to arrive in the middle of 2010. They stem from a dispute over rates ordered in 2008. During the appeals process, the bureau increased rates beginning January 1. In cases where insurers charged customers more than the rates agreed upon in the settlement, auto insurance companies have to refund the difference between the rates charged and the settlement rates with interest. North Carolina drivers are getting a great deal as rates go down and refunds are delivered.

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