Smart Auto Insurance Blog

Louisiana once again is experiencing the highest median auto insurance costs throughout the entire nation.  Coming in at $1,111 on average according to the InsWeb survey, Louisiana feels the weight of these high rates especially when compared to other states which are significantly lower.

According to the article “Louisiana Auto, Property Insurance Rates Highest in US” by Christopher Tidmore on BayouBuzz, North Carolina’s average cost is $495 and Virgina comes in at $521.  Both of these rates are less than half the cost of Louisiana auto insurance.  Florida auto insurance quotes have jumped and are on the higher side as well, coming in at about $750, which is worse than last year.

InsWeb’s 2011 Car Insurance Rate Report comes in handy when people are shopping around to compare auto insurance.  It gives consumers an idea of what to expect and what might be considered “high” in their state.  The annual report ranks all 50 states and Washinging DC and bases their rankings on the median household car insurance rate for a 6 month policy.  InsWeb gets their rates from a system that tracks rates from the largest auto insurance companies in every state in addition to actual profiles of their customers.

According to the article “North Carolina has Eighth Cheapest Car Insurance” by Lee Weisbecker on Triangle Business Journal’s website, North Carolina auto insurance quotes are the 8th lowest in the nation and the lowest in all the South.  This came from a report from the National Association of Insurance Commissioners.

North Dakota had the lowest auto insurance rates at $511.79 per year and Iowa was 2nd with $517.62 per year.  The study looked at payment levels from customers for all 50 states from 2003 to 2007.

The North Carolina Insurance Commissioner, Wayne Goodwin, thinks the report’s findings are encouraging and states that he is pleased that North Carolina continues to be one of the most affordable states in the country.  The low rates are partially due to the fact that North Carolina is one of the only states to negotiate standardized rates for all auto insurance companies.  The rate set by the insurance commissioner becomes the cap, and companies can only deviate from this rate by offering consumers discounts.  SR22 insurance in North Carolina is typically higher because these drivers are deemed higher risk.

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.

Drivers by the thousands across the state of North Carolina could enjoy some relief from the recent spike they have experienced in their auto insurance rates due to a bill that recently passed through the senate with flying colors.

Essentially the bill would eliminate the recent added requirement that all automobile insurance provide the same level of uninsured and underinsured protection  as it does liability coverage.  The bill, which pased the senate by a 48-0 vote passes the house, it will go into effect October 1.

Other information about North Carolina Auto Insurance.

In the Insurance Journal, it was reported that Attorney General Martha Coakley is wary of a potential entrant into the Massachusetts auto insurance market. Occidental Fire and Casualty Insurance Company recently filed its proposed rates for high-risk drivers, and they are 10% more expensive than average high-risk policies in the state.

Occidental also wants to charge several surcharges and fees that are either illegal in Massachusetts or considered unfair, including:

• A 35% surcharge for those unable to verify their driving records, including recent immigrants from non-English speaking countries who can’t get their records in English. That’s on top of the higher premium for inexperienced drivers.
• Drivers filing glass claims have to pay Occidental two deductibles: a comprehensive deductible and a separate glass deductible
• A fee of $25 tacked onto each initial policy purchase
• Fees of $8 per installment

In addition, Occidental does not allow drivers to reinstate their auto insurance policies after being canceled for nonpayment, which is against Massachusetts law. (Buying a new policy after having one canceled results in more costly auto insurance premiums.) Coakley is especially concerned because Occidental is targeting inner-city communities, where residents tend to have fewer auto insurance options.

North Carolina insurance commissioner Wayne Goodwin said Monday that auto insurance companies in North Carolina are requesting a 1.4% average rate increase on average via the North Carolina Rate Bureau, the organization that represents Auto Insurance companies in the state.  The 2009 auto insurance rate increase request is in addition to the 9.4% increase that was requested in 2008.

More North Carolina auto insurance information and resources.

Beginning January 1, 2009, auto insurance companies will be permitted to raise the North Carolina auto insurance rates by 9.4%.

North Carolina Insurance Commissioner Jim Long, initally requested that auto insurance companies reduce their rates by 16% but the N.C. rate bureau who represents the states auto insurers had previously requested a 12.9% increase.  A subsequent appeal to The North Carolina court of appeals trimmed the increase to 9.4% but that might be temporary until the court rules on the appeal.