Drivers in North Carolina could soon see an increase in their auto insurance. The hike is a result of a number of factors driving up the amounts paid out by insurance companies. Although the NC Department of Insurance has filed an appeal to challenge the proposed amount of increase, we are likely to see a change that could take effect beginning October 1.
Why the increase?
It would be difficult to miss the stories on the news related to accidents caused by distracted driving. We’re all aware of the perils of texting and driving. Auto accidents are increasing as more drivers purchase smartphones but fail to use them responsibly.
Another reason for an increase is simply that people are driving more. A robust economy and lower gas prices means people are hitting the road in greater numbers. Over the past couple of years this has attributed to a rise in auto accidents.
Finally, repair costs have skyrocketed due to advances in technology. Many vehicles now provide complex features that are very costly to replace.
How will this affect me?
The good news is that you are already using an independent agent (that’s us), so you’re on the right track! Each year, we review your policy when it renews to look for significant rate increases. We compare companies and check your coverage and discounts to ensure that you are getting the best policy at the right price. As the insurance industry adapts to a fluctuating economy and advancing technology, we will continue to monitor your policies and keep you informed on how the changes affect you.