NC Lawmakers Look At Auto Insurance Risks, Costs

North Carolina legislators are once again examining how automobile insurance rates are made and whether there's a better balance between risk and costs.

A committee is studying how premiums are set for the state's roughly 7 million insured personal vehicles and will recommend if any changes should be made. The panel is once again revealing divisions within the powerful insurance industry.

A coalition led by State Farm, Geico and Progressive say insurance companies should be given more authority to adjust their own rates. Currently all the insurance companies work together to file one annual overall rate change that applies to everyone.

Nationwide and North Carolina Farm Bureau Insurance aren't in the coalition. Nationwide says there's no need to dismantle the current system. The state's average premium ranks among the 10 lowest nationally.

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  • by WHYNOT? Location: Ayden on Dec 26, 2011 at 05:01 AM
    If the NC General Assembly is going to look at the auto insurance companies on how they set their rates, then the General Assembly should take a look at how the Social Security taxes and benefits are determined. For they both rely on the same principle; they spread the costs of the risks over a segment of the population.
  • by Chris Location: ENC on Dec 25, 2011 at 08:39 PM
    The "Law" is the problem here. For the insurance companies sake the Government should not have anything to do with what a company charges. That is what the beauty of free enterprise was supose to be. Now the State has and is still tellig these "private" companies how to run thier businesses. This is not what a free society is about. The beauty of a prosperous economy is less regulation and more freedom of choice. You still have a choice on insurance companies but the Gov sets regs that affect all insurance companies leaving individuals pretty much stuck where they are. To "Not Good" - it is a socialist idea to throw someone in jail for not having insurance or to even make an individual have insurance of any kind. Society today is used to having the government hold our hand and tell us just about everything we can and cannot do. Big Government= Bad Vote Ron Paul 2012 !
    • reply
      by excuse me on Dec 26, 2011 at 05:36 AM in reply to Chris
      I wish someone would tell the insurance companies what to charge, they are stealing from folks. If they are allowed to charge what they want (set their own price)......well your price just went up buddy. They all get together in their little group (like your doctors & dentist)and agree to charge no less than a set price and from there it just goes up and up until the average Joe can't afford it. Something has to be done with business in America, they steal from the working man and from your government.
      • reply
        by Chris on Dec 29, 2011 at 12:00 AM in reply to excuse me
        That would work just fine if wished to have a socialist goverment, heck why not have a communist government that provides the insurance and let THEM charge what they want !
  • by 40some on Dec 25, 2011 at 08:18 PM
    State farm hit me with a 700 increase last year so I took my two vehicles and home over to Farm Bureau. I saved almost 800 bucks.
  • by Anonymous on Dec 25, 2011 at 05:23 PM
    The courts should retrieve the money from the Idiots driving with no insurance, No license, and No Inspections and stop penalizing the ones abiding by the law.
    • reply
      by DIXIECHICK on Dec 26, 2011 at 04:06 AM in reply to
      Very true. Why should we pay for everyone else? I'm with Farm Bureau and they are the best insurance company I've ever been with.
  • by Not good Location: ENC on Dec 25, 2011 at 04:53 PM
    We need to stop subsidizing and charge the people that have bad records. Better drivers should have very low rates. If you don't carry insurance and get caught, you go to jail! Stop enabling people and they will conform or suffer the consequences. Personally, I think it should be illegal for insurance companies to reference your credit score to determine your rate.
    • reply
      by Chuck on Dec 25, 2011 at 07:06 PM in reply to Not good
      I Agree.The price you pay for insurance should be based on your driving record.No accidents,No tickets,should be a very low rate. Let the fools who get tickets & Have wrecks which are their faults pay the high rates. Same with homeowners.No claims should get low rates. I have has homeowners insurance & Auto insurance with State Farm for 30 Years & Had no clains on any of my policies..Still pay around $4000.00 yearly for home & 3 Autos. It is a shame.
      • reply
        by 40some on Dec 25, 2011 at 08:20 PM in reply to Chuck
        Chuck, you're getting screwed. Get quotes from other companies.
  • by john Location: farmville on Dec 25, 2011 at 04:29 PM
    there should be at least a 200,000 dollar minimum for everyone
  • by ENC Location: greenville on Dec 25, 2011 at 02:37 PM
    Know this means a rate increase.
    • reply
      by Chuck on Dec 25, 2011 at 03:25 PM in reply to ENC
      Yes it does.State farm is already sticking it to me.We have no points,Clean driving record,& still very high rates. Another issue is that they are ripping me off on my homeowners insurance.
      • reply
        by 40some on Dec 25, 2011 at 08:19 PM in reply to Chuck
        Had the same issue with SF...Get a quote from Farm Bureau.
    • reply
      by Anonymous on Dec 25, 2011 at 04:22 PM in reply to ENC
      If Thom Tillis and "Robespierre" LaRoque are involved you can bet on it.
  • by Anonymous on Dec 25, 2011 at 02:02 PM
    North Carolina legislators getting involved, will not be good for the policy holders.

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