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Legislation Would Raise Auto Rates

Big insurers pushing to dismantle North Carolina’s low-cost auto insurance system present a misleading picture of reality – and the serious problems their proposal would create. Their scheme would push auto rates higher for many people, hurt consumers, and favor bad drivers over good drivers.

HIGHER AUTO INSURANCE PRICES - The proposal would destabilize North Carolina’s robust, competitive, reliable, low-cost auto insurance market, confusing consumers and raising rates for at least 1 million good drivers. That’s especially wrong for a mandatory product that North Carolina citizens are required by law to purchase so they can drive to work, go the grocery store, or take their child to a doctor.

CONSUMER PROTECTIONS LOST - The insurance companies’ scheme to set their own rates will severely limit the power and ability of North Carolina’s elected Commissioner of Insurance to protect consumers from higher rates. Their proposal would make it hard for drivers to comparison-shop, apples to apples, based on standard policy forms and minimum requirements. And it very likely would lead to more uninsured motorists, endangering families, students, the military, and commuters on our roads.

HURTING GOOD DRIVERS - The proposal would push auto rates up for 70 percent of the drivers in our state’s “Reinsurance Facility,” drivers with no motor vehicle convictions and no license points – 1 million people.

HELPING BAD DRIVERS - It also would let insurers charge higher rates for speeding tickets that are dismissed and drivers found not guilty, while cutting rates for habitual drunk drivers, speeders, and reckless drivers.
Why should North Carolina’s voters want their elected legislators to reward dangerous drivers?

NORTH CAROLINA’S LOW-COST REALITY - North Carolina has strong consumer protections and a competitive market, with 157 insurers. North Carolina’s auto rates are the sixth-lowest in America, third-lowest for U.S. commuters, lowest in the Southeast. After inflation, rates are down 16% since 2006. Under current law, auto insurance companies are free to cut their prices as much as they want, any time they like.

They don’t need a new law to charge LESS, they want one so they can charge MORE.

Contact your state lawmakers to oppose this legislation. 

© 2017 Protecting Low Automobile Rates

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