Uncategorized

Another day, another editorial against proposed car insurance rate scheme

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.

Read more here: http://www.charlotteobserver.com/2014/06/18/4987220/the-road-to-higher-insurance-rates.html#.U6LgQChJRdh#storylink=cpy

 

Check Also

Vigils scheduled for this evening in Raleigh, Charlotte and Chapel Hill to commemorate 5th anniversary of Sandy Hook

As was highlighted in yesterday’s Policy Watch radio ...

Top Stories from NCPW

  • News
  • Commentary

The UNC Board of Governors is holding its last meeting of 2017 Friday, where the latest of its many [...]

Just south of Candler off the Pisgah Highway is a lovely piece of property on Little Piney Mountain [...]

Veteran North Carolina education policy expert Kris Nordstrom has authored a new and vitally importa [...]

When Joni Robbins, a section chief in the N.C. Department of Public Instruction, closes bidding next [...]

“All speech is free, but some speech is more free than others.” This seems to be the motto of the cu [...]

Trumpists prepare to raze another vital common good law It’s hard to keep up these days with the flo [...]

The post That’s how ‘Humbug’ is done appeared first on NC Policy Watch. [...]

The solid citizens of Johnston County, N.C. – in a fateful quirk of geography – for several years ha [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more