Auto insurance rates may rise in North Carolina

Auto insurance coverage concerning accident claims are being debated by the North Carolina legislature.North Carolina drivers could soon see their auto insurance costs rising, according to Raleigh-based ABC news affliate WTVD.

This hot topic, being debated in the state’s legislature, centers on the way accident insurance claims are handled in North Carolina, the news station said. The current law states that any fault, no matter how minor, found with a driver involved in an auto accident makes them ineligible for an insurance payout.

A new piece of legislation has been proposed that would amend the current law. However, some experts believe it would only cause auto insurance costs to rise. A 3 to 16 percent increase in rates is predicted by the North Carolina Rate Bureau, WTVD reported.

The Insurance Federation of North Carolina is against the proposed law. Jennifer Cohen with the IFNC said "we really feel that this is the wrong time for North Carolinians to be pulling more money out of their household budgets." However, advocates believe this is a needed change.

The state’s insurance department has been working in other ways to help its residents. In the beginning of May, North Carolina drivers received refund checks from auto insurance companies that amounted to more than $50 million.ADNFCR-3298-ID-19788192-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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