North Carolina's insurance rates hike denied, rates in other states still rising
Homeowners and drivers are cutting back on insurance to afford high monthly costs
While the denied increase is good for North Carolinians, other states are seeing record high rate increases. (iStock)
The North Carolina Insurance Commissioner recently denied a proposal from insurance companies that would raise homeowners insurance rates across the state by an average 42.2%.
The rate increase would have raised rates by 4.3% in some of the lower population areas and up to 99.4% in the more populous beach areas.
"I haven’t seen the evidence to justify such a drastic rate increase on North Carolina consumers," North Carolina Insurance Commissioner Mike Causey said in a statement.
"The Department of Insurance has received more than 24,000 emailed comments on this proposal, with hundreds more policyholders commenting by mail," Causey said. "Scores more consumers spoke during a public comment forum. North Carolina consumers deserve a more thorough review of this proposal. I intend to make sure they get that review."
Drivers in other states haven’t been as lucky. California’s recent rate hike request by Allstate was approved. California drivers may have to pay an average of 30% more for their insurance coverage. Some areas of the state will see smaller increases of about 10%, while others will see rates increase by up to 55%.
"Our payments to help customers recover from accidents and disasters have increased significantly over the last few years, and we need to adjust rates to reflect the cost of providing the protection our customers depend on," an Allstate spokesperson said.
Last year, Allstate paused new auto insurance policies in California, but higher approved rates means the insurer is back offering new policies again.
To cut back on sky-high insurance rates, make sure you’re comparing your rate options for different companies every few months. Credible can walk you through each homeowner's insurance policy and provide you with rate quotes all in one place.
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As homeowner insurance rates rise, coverage declines
Homeowners insurance rates rose about 35% nationwide on average over the last two years, according to Policygenius data.
States that faced an increase in natural disasters like tornadoes, hurricanes and flooding saw the highest hike in premiums. Florida saw the highest rise in premiums, with a 68% increase since last year. In the last two years, New Mexico residents also saw high increases in homeowners insurance costs. with rate increases of about 47%.
As rates increase, some homeowners are lessening their coverage amounts to manage high costs. In Colorado, a Division of Insurance investigation found that only 8% of policies would cover damage due to recent wildfires.
The same investigation found that between one-third and two-thirds of the homes affected by the wildfires were underinsured.
"We’re very concerned about what those homeowners are experiencing with the affordability issues, and we’re absolutely sympathetic to the pressure that they’re feeling to find a way to afford their insurance coverage," Colorado Insurance Commissioner Michael Conway told the New York Times.
Visit Credible to get a better understanding of the different types of home insurance coverage and to find a level of coverage that works for your needs and budget. Credible can show you free rate quotes all in one place.
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Auto insurance costs are also rising
Like homeowner's insurance rates, the auto insurance industry has seen an overall increase in rates. In the last three years, auto insurance costs have risen by 43%, according to a Jerry study.
Back in October, insurance rates rose at an annual rate of 19.2%. This is the fastest increase since 1985 when data on rates started being collected.
Drivers have also cut back on certain car insurance costs, likely due to rising costs. About 14% of drivers were driving without any liability insurance in 2022, an Insurance Research Council found.
The area with the most uninsured motorists is Washington D.C., with 25.2% of drivers uninsured. New Mexico is a close second, with 24.9% of drivers reporting they’re uninsured.
With different coverage amounts, it’s important to shop around to find the right auto insurance plan that fits your needs. Visit Credible to start the process and compare quotes in minutes.
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