Outdated Insurance System
Did you know, in just five years, North Carolina consumers have paid nearly $900 million to subsidize the losses of high risk drivers? Why? The answer lies in the outdated and noncompetitive system North Carolina uses to establish automobile insurance rates.
By law, the N.C. rate bureau is directed to engage in what amounts to government price-fixing of auto insurance rates, causing the best drivers to lose the best discounts and stifling competition. In fact, current government rate caps shield high risk drivers from the financial consequences of their actions. This system, which has been abandoned by every state except North Carolina, also adds additional bureaucracy and related costs to insurance pricing.
It’s time for the change in North Carolina — time to recognize that competition and consumer choice is the best regulator of price. It’s time to eliminate government rate caps which result in surcharges paid by North Carolina drivers, surcharges that reward higher risk drivers and encourage risky driving behavior. In today’s environment, where every penny counts, North Carolina’s good drivers deserve better.
It’s time we have a free market auto rating system in North Carolina. Why is North Carolina the only state in the nation that mandates how companies charge drivers for car insurance? The current system forces good drivers to pay more so bad drivers can pay less for their car insurance.
I applaud the dedication of our elected officials to do the right thing for North Carolina auto insurance with giving companies more flexibility and consumers more options.
State Farm Insurance
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