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AP Business Writer

RALEIGH, NC (AP) — North Carolina has some of the lowest auto insurance rates in the country, but a group of insurers who want changes say the system is unfair to good drivers.

Companies including State Farm and Allstate will be looking to overhaul the system setting rates for nearly 7 million insured personal vehicles after the Legislature returns to work next month. Insurers say the changes will benefit good drivers.

Every auto policy includes a $17 per vehicle surcharge to operate one of the country’s largest pools providing coverage to drivers that companies don’t want.

The latest consumer cost information analyzed by the National Association of Insurance Commissioners finds North Carolina had some of the country’s lowest premiums.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comment on this Story

  • Vog46

    While I agree that good drivers should be rewarded I am concerned that bad drivers could be facing astronomical rate increases and once we give insurance company’s an easy way to increase rates I’m very afraid they will take advantage of that ability.
    Overall I’m glad to be paying a lower rate than most


  • SurfCityTom

    I may be mistaken, but I believe the intent is to remove the surcharge currently being assessed against policies which are not in the Reinsurance Fund. That equates to $17 annually per policy.

    Then, I believe they want to make rates for the higher risk drivers, who are in the Reinsurance Fund, consistent with their driving records and at fault accidents.

    Remember, any attempt to alter rates must go before the Insurance Commission for approval. They can not just change rates without a public hearing.

  • B M

    People don’t be so naive, the insurance companies don’t give a rat’s about good drivers, all they want to do is increase rates across the board, so at first raise them on one group, then 6 mos later come back and get the rest, why do insurance rates increase on a ticket and no accident, what inspires law enforcement to write tickets, answer! insurance companies, they hunt any and every excuse for a rate increase even though we haven’t cost them a red cent. As for Allstate, I’m sick of hearing their good driver and accident forgiveness ad’s on TV, ask an agent, those discounts don’t apply to NC drivers, it’s all a scam.

  • Vog46

    Being a good driver I have no problem with people being forced to pay more for being lousy drivers with resulting accidents.
    To me it’s a financial incentive to become a good driver.
    It’s just that I don’t trust insurance company’s nor do I trust a police officer to make the right call as to “cause” in many accidents.


  • SurfCityTom

    hate to tell you, but claims adjusters and investigators rarely give credence to a police officer’s opinion of fault when investigating accidents.

    And insurance companies really can not just apply indiscriminate rate increases. There’s a rather lengthy process which includes hearings by the DOI in Raleigh; and requires the filing of several years worth of loss statistics to support the requested increase.


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