N.C. FALLS TO FIFTH LOWEST AUTO INSURANCE RATES IN NATION

Insurance Commissioner Jim Long has announced in Raleigh, N.C., that the state now ranks as having the fifth lowest auto insurance rates in the nation, an improvement of three places over last year’s ranking as the eighth lowest. States bordering North Carolina rank as follows: Tennessee, 11th; Virginia, 13th; South Carolina, 26th; and Georgia, 27th.

The rankings are obtained from a report by the National Association of Insurance Commissioners, which compares the costs of personal automobile insurance in all 50 states and the District of Columbia, based on 2003 data.

Rate decreases have been ordered by Long in 10 of the last 20 rate requests. In five other years, the commissioner decided upon a zero percent change in rates, keeping them level instead of allowing an increase.

The 2005 auto rate filing from the North Carolina Rate Bureau, which represents the insurance companies, requested an 11.5 percent increase in rates, later reduced to a 9.6 percent requested increase.

Because the Department of Insurance and the Bureau could not negotiate a settlement in this case, Long, serving as the hearing officer, initiated hearings to determine the rate (see previous brief).

North Carolina continues to be the most populous state to enjoy a spot in the top 10 lowest states to rank in the NAIC’s report. Other states with low auto insurance rates have a significantly less dense population than North Carolina, which contributes to their lower rates.