Consent to Rate Letter

How a Consent to Rate Letter Affects You 

Perhaps you have heard of a Consent to Rate form, but never paid much attention to what it involves, until NOW.  You just received one in the mail and now you NEED to know how it pertains to you.  Find out how a Consent to Rate Letter affects you and what you need to do should you receive it. 

First of all, you need to know what a Consent to Rate Letter is before you can know how it may impact you and your N.C. homeowners and auto insurance premium rate.  The N.C. Insurance Commissioner endorses rates for both homeowners and auto insurance policies for the state of North Carolina, establishing the maximum allowed rates that policyholders can be charged. However, if you receive one of these letters, it could be a game changer for your insurance premiums. 

If you sign this letter, what you are agreeing to is a higher premium than established as the “state rate.”  We recommend that if you do receive a Consent to Rate letter, you immediately contact your local N.C. independent insurance agent to inquire about any necessary actions BEFORE signing.

What It Means to Receive a Consent to Rate Letter  

There is no need to be alarmed if you receive one of these letters; after all, the insurance companies are allowed to send them for several reasons, without any legal consequence.  However, it is most likely not a good indicator of your future dealings with that particular insurance company as declining to sign this letter may negatively influence your current standing.  Either way, it may be time to take action.  Below are 2 reasons you may be the recipient of a Consent to Rate letter: 

  • You have been recognized as a risk that your insurance company no longer wishes to accept at your current rate of premium. As a result, signing this letter is allowing the insurer to charge a higher than the state maximum (for auto and homeowners) in order to continue coverage with them. 


  • Many people have been targeted as “too high” of a conglomerate risk due to the generalized area in which you reside. 

Regardless, signing the form WILL result in a higher insurance premium, so beware. 

It May Be Time to Take Action   

If you receive this letter, it is recommended you contact us at Paramount Insurance Agency and we can assist you in whatever plan of action is most beneficial for you.  The good news is that we have a specialized staff on board who are experts in Consent to Rate forms and can not only answer any and all questions pertaining to this situation, but can guide you to perhaps another insurance carrier that can provide your needed N.C. auto and homeowners coverage that better suits your needs and budget.  Our goal as an independent insurance agency is to shop your coverage options for YOU and find the best protection for your specific needs.  Call us TODAY at 336-869-3335.