Private passenger auto insurance rates will be reduced 2.9 percent in North Carolina, according to the provisions of a settlement signed in Raleigh by Insurance Commissioner Jim Long. The reduced rates will take effect Nov. 15, 2006.
The North Carolina Rate Bureau, an independent organization representing all auto insurance companies in the state, initially filed a request for a 7.4 percent increase in February. Department of Insurance officials found no justification for the increase, and negotiated with the Bureau for the agreed-upon decrease instead. This negotiation is estimated to save drivers nearly $350 million in potential premium payments.
This agreement comes just a month after a settlement was reached in the 2005 auto insurance rate case, in which the Bureau asked for a 9.6 percent increase but received a 2.5 percent decrease after a lengthy hearing.
Commissioner Long has only approved rate increases seven times in the last 22 years. The total estimated potential savings to North Carolinians since 1984 is $4.3 billion.
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