People who live in North Carolina have the lowest average rates in the Southeast. When you look at other states, North Carolina’s insurance market is strong and healthy.
But as Commissioner of Insurance, I support changes to the free market that give insurance companies more freedom in how they sell their products. What we need are more insurance companies that offer home protection. When there is more competition, customers have more options and can get better deals.
The General Assembly made the N.C. Rate Bureau in 1977, so they are the only ones who can change it.
I said “No!” earlier this year to the insurance companies’ plan to raise house insurance rates by an average of 42.2% statewide in January.
People who own homes were shocked when their insurance companies asked for such a large amount.
Insurance companies wanted to raise rates by an average of 42.2%, but in some beach areas they wanted to raise rates by as much as 99.4%.
It was put forward by the North Carolina Rate Bureau. The companies that write insurance contracts in the state are represented by the Rate Bureau. It’s not tied to the Insurance Department and isn’t run by the state.
It is made up of 14 people who work for insurance companies in North Carolina that write plans for homes and cars. An insurance company in North Carolina that writes policies for homes or personal cars has to be a member of the Rate Bureau.
I was against the planned rate hikes because I thought they were “excessive and unfairly discriminatory.” Because of this, I turned down the plan and set an Oct. 7 court date.
There have been eight applications for dwelling and fire rates in the last 20 years. One person only showed up to the meeting. People and the government both save money when they settle instead of going to court. Hearings are only held when talks fail.
State law says that any request must have a time for the public to respond. All rate requests from the NCRB are made public by the Department of Insurance, and the public is welcome to give feedback. We also hold public meetings where people can give their opinions, and the time for comments is usually extended by two weeks.
Since I became your Insurance Commissioner, this is the fourth time that insurance companies have asked for homeowners’ rates to go up. I’ve said “No” four times now! I’ve also turned down every plan to raise rates on car, home, and mobile home insurance, and I’ve worked to get settlements for consumers that are as low as possible.
As your Insurance Commissioner, I have to follow the steps set out by the General Assembly in 1977 in state law.
I need to make sure that insurance rates are high enough for companies to pay claims and stay in business. To be sure, I need to check that those rates are not “excessive” or “unfairly discriminatory.”
State law says that I need to make sure there is a strong insurance market so that people in North Carolina can choose from different insurance plans. People will lose out if there is no competition.
Here are some things you can do:
Ask for discounts and look into bundling your insurances to save money. Also, make sure you’re not paying for benefits you don’t need.Think about getting a plan with a bigger deductible.
This could lower your premium. Getting a new furnace or hot water heater can lower your chance of having to file a claim. You can also look at other plans from time to time, but try not to move carriers too often.
There are insurance companies that give savings to customers who are loyal. Talk to your insurance agent about making a plan that fits your needs.
Your agent might be able to help you find ways to save money. Every time your policy is renewed, go over it carefully. The bonus can change because of things like the home’s value.