ACTION 9: New car insurance rates impact drivers statewide

You may have to pay more for car insurance from now on in the Tar Heel State.

Some residents have been keeping up with the recent changes.

“I pay a lot [of attention] because life is so hard and it’s a struggle,” said driver Kevin Wilson.

North Carolina’s new rates went into effect this week.

Action 9 investigator Jason Stoogenke spoke with state Insurance Commissioner Mike Causey about the changes, which impacts nearly every driver, especially new ones.

“There’s a lot of accidents with young drivers the first year or two, but there’s actually as many or more in years four through seven,” Causey said. “I’ve certainly heard my share of complaints from parents that have a number of young children that are going to be driving over the next few years, but I think when they get into it, it’s not as bad as it sounds on the surface.”

Stoogenke explains what four of the biggest changes mean for you.

Underinsured drivers

All polices now must include underinsured coverage in case you’re in a wreck and the driver who’s at fault has insurance, but not enough. All policies already had to include uninsured -- as opposed to underinsured coverage, in case a driver without insurance causes the wreck.

New drivers

New drivers must pay more longer. Instead of three years, it’s now eight. At least the price can go down after year three, Stoogenke said.

Moving violations

You’ll be paying for certain moving violations longer. The points won’t change, but the years will. They’ll impact your insurance for five years instead of three.

Minimum coverage

You’re already required to have a minimum amount of coverage. Now that minimum is going up. Before, insurance policies had to have minimum liability of $30,000 per person, $60,000 per accident for bodily injury, and $25,000 per accident for property damage. Now that’s $50,000, $100,000, and $50,000.

Most of us already carry the new minimum. But if you don’t, expect to pay around $45 more each year, assuming you don’t have points.

“It is an important step in the right direction,” said Mark Friedlander, with the Insurance Information Institute. “Even though the new requirements are significant in terms of the change, they’re still below what most insurance professionals recommend.”

He says that’s because, “What we are seeing of course: Much more expensive vehicle repairs combined with escalating medical costs.”

This is very important: If you already have a policy, that rate shouldn’t change. It could change when you renew it or get a new policy.

Want a better deal? Three things:

Shop around
See if it’s cheaper bundling with home or renter’s insurance
Ask about discounts. Both the traditional ones, including for good drivers, and the newer ones, including where you agree to let the company track your driving habits. If you allow an insurer to monitor your driving, that could go both ways.

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