Tom's Blog
You may have heard about car insurance rates on the rise, but most likely you have seen or will see in the near future that when you open your renewal bill, you will see a spike in your N.C. car insurance bill and you may be asking yourself, “Why is my N.C. car insurance bill increasing?” Many people are confused especially if there have been no accidents, tickets, or changes in their coverage yet still experience a rate increase for their N.C. car insurance.
Some Common Reasons for Car Insurance Rates Increases
Accidents, Speeding Tickets, Driving with License Revoked
This simple reason may be obvious, but if you have been involved in chargeable accidents, received tickets, had a change in your auto insurance coverage, or get caught driving with a revoked license, then your rates WILL increase.
Recoupment Charge
This is a common reason for insurance rate hikes because as you may know, N.C. mandates that all car owners MUST have auto insurance even if that particular car owner(s) has a very poor driving record and many accidents. Nobody can be denied insurance coverage because of being high risk, so in 1973, the NCRF (North Carolina Reinsurance Facility) was formed to allow all eligible drivers access to insurance coverage and then spread the cost evenly among all the participating insurance carriers so as to avoid any one company being hit harder than the rest.
A “recoupment charge”, created by the North Carolina Rate Bureau (NCRB), was designed as a remedy to balance out the shortfall and as a result, this surcharge is added to ALL N.C. auto insurance policies at a current rate of 13.24%.
Increase of Auto Accident Claims from Distracted Drivers and Drivers Under the Influence
The news media has discussed this problematic issue at length and thus, created some awareness, but continues to plague the auto insurance industry financially. Because of the increase in accidents due to distracted drivers or drivers under the influence, your auto insurance premium/renewal rates are on the rise.
Higher Costs of Automobile Repairs and Increased Cost of Medical Bills
Because of inflation, the cost to repair cars and receive medical treatment has gone up significantly. In fact, the NCRB states that car repairs are up 2.4%, while medical costs have increased by 3.8%.
Hikes in Deaths, Injuries, and Auto Accident Claims
Because more people than ever before are driving on our roadways and for longer time periods, there has been an increase in the number of auto accidents, increase in injuries and even fatalities as a result. This is having a huge financial impact on the insurance companies and as result, your N.C. auto insurance bill.
Increase in Mileage Driven
According to the NCRB, the mileage driven on the roadways is up 13 percent.
All of these factors have an impact on your N.C. auto insurance bill, so the next time you open your bill, you may have a better understanding for the rate increase.
We Prioritize Your Insurance Needs
Your insurance needs are our priority so if you have any questions regarding your N.C. auto insurance renewal/premium bill, we will be glad to assist you in every way possible. Perhaps we can rearrange some options for you to obtain a reduced premium, such as an increase in your deductibles, the bundling of home and auto policy, or seek out any available discounts for which you may be eligible. Give us a call TODAY at 866-869-3335.
