Add the Charlotte Observer to the long and growing list of voices opposed to the disingenuous plan cooked up by a group of insurance companies to get out from under the consumer protection regulation overseen by the state Insurance Commissioner. As this editorial notes this morning:
“Currently, auto insurance companies doing business in North Carolina have to agree to a rate increase or decrease each year with the N.C. Rate Bureau. The insurance commissioner, currently Wayne Goodwin, reviews those requests and decides if the rate change (usually a hike) is justified. The result of this unique system: North Carolina’s average auto insurance rates are the lowest in the South and sixth-lowest in the country.
Insurance companies would have you believe that N.C. drivers could do even better if the Rate Bureau just got out of the way and let insurers offer more discount programs. But the state already has approved about 2,000 such programs, and Goodwin supports legislation that would allow for even more – without dismantling the Rate Bureau structure. Insurers aren’t interested in that.
What they are interested in is charging more, which is what happened in South Carolina, where rates went up 23 percent after the state made a similar change in the 1990s. In North Carolina, reform might be especially bad news for some of the estimated 1 million drivers who are considered riskier by insurance companies. Most of those drivers are younger and have clean records, and the state allows the rest of us to be charged a small fee so that these ‘risks’ don’t have to pay exorbitant premiums. Change the system, and insurers could make more of a profit off them, as they do in other states.”
Read the entire editorial by clicking here.