North Carolina Car Insurance Rates and How They Are Set

North Carolina sets car insurance rates differently from most states. Instead of each company filing its own base rates, the North Carolina Rate Bureau proposes rates for private passenger auto liability and physical damage coverage on behalf of its member companies, and files them with the Commissioner of Insurance ^{1 2}. The Rate Bureau represents the insurance companies writing auto insurance in the state and is not part of the North Carolina Department of Insurance (NCDOI) ⁶.

The most recent statewide auto rate case ended in a settlement. In June 2025, NCDOI announced that the Commissioner and the Rate Bureau had agreed on an average statewide increase of 5%, against the 22.6% the Rate Bureau had requested in February 2025, for new and renewed policies on and after October 1, 2025 ^{5 6}. That is an average across policyholders, not a figure for any one bill. Our guide to why car insurance goes up covers the personal reasons a renewal can change.

State law created the North Carolina Rate Bureau and gives it the job of promulgating and proposing rates for theft of and physical damage to nonfleet private passenger vehicles, and for liability insurance on those vehicles, including medical payments and uninsured and underinsured motorist coverage ¹. For private passenger auto, the Bureau must file its data and any proposed rate adjustments for all member companies with the Commissioner on or before February 1 of each year, or later with the Commissioner's approval ². A Bureau filing is open to public inspection as soon as it is submitted ².

NCDOI explains the next step in its own release. State law gives the Commissioner 60 days to review the request and decide whether the increase is justified by the data; if the Commissioner does not agree, NCDOI can negotiate a settlement or call for a hearing, where a hearing officer would rule on the request ⁵. Settlements have been reached on auto rate filings in the past ⁵.

Insurers that belong to the Rate Bureau must use the Bureau's rates and rating plans unless an exception applies ³. A company may deviate from the Bureau rate if it files the deviation with the Bureau and the Commissioner, the deviation is based on sound actuarial principles, and the Commissioner approves it ³. For physical damage coverage, the same section lets an insurer charge a rate above the Bureau rate on a specific risk under the Commissioner's rules, but the policy must carry a bold notice saying the premium exceeds the premium based on North Carolina's approved rates ³. Our explainer on what a rate filing is covers how filings work more generally.

The Rate Bureau filed its request on February 3, 2025, asking for a statewide average increase of 22.6% with rates to take effect October 1 ^{5 6}. NCDOI said that filing followed a February 2023 request for 28.4%, which ended in a settlement of an overall average 4.5% increase per year for two years ⁵.

On June 9, 2025, NCDOI announced the settlement: an average statewide increase of 5% for automobile insurance, 17.6 percentage points below the request, plus an average statewide 16.3% decrease in motorcycle liability rates ⁶. The increase applies to new and renewed policies on and after October 1, and the hearing that had been set for September 22 was canceled ⁶. Commissioner Mike Causey said the agreement will keep North Carolina's average auto premiums among the lowest in the nation ⁶. Each of these figures is a statewide average, so individual changes can be larger or smaller. Check NCDOI's news releases for any later filing.

North Carolina prices driving records through the Safe Driver Incentive Plan (SDIP). The law requires the Rate Bureau to file a plan that separates drivers with safe records from drivers with at-fault accidents or moving violation convictions, with premium surcharges above and discounts below the base rate ⁴. When a policy loses a safe driver discount or is surcharged for points, the insurer must send a notice stating the basis, and on written request must tell the policyholder how much of the premium increase comes from the surcharge ⁴. The law also says no classification plan for private passenger auto may be based, directly or indirectly, on the age or gender of insureds, except as provided in G.S. 58-36-30(d) ⁴.

Several rating changes took effect on July 1, 2025, as NCDOI's fact sheet describes ⁷:

• Inexperienced drivers. For drivers first licensed on or after July 1, 2025, the inexperienced operator surcharge can apply for up to eight years of driving experience instead of three, with lower surcharges in years four through eight ⁷.
• Serious convictions. For certain convictions on or after that date that carry four or more SDIP points, other than certain speeding convictions, the surcharge applies for five years instead of three ^{7 4}.
• Speeding 10 mph or less and PJCs. The lookback period used to waive these for insurance purposes increases from three to five years for convictions and prayers for judgment continued (PJCs) after July 1, 2025. NCDOI noted it was monitoring legislation that would keep a three-year lookback for violations and PJCs before that date ⁷.

Under G.S. 20-279.21, a North Carolina auto liability policy must cover at least $50,000 for bodily injury to or death of one person, $100,000 for bodily injury to or death of two or more people, and $50,000 for damage to the property of others, in any one accident ⁸. NCDOI says those limits apply to new or renewed policies on or after July 1, 2025, replacing the earlier $30,000, $60,000 and $25,000 minimums, and that underinsured motorist coverage is now included in all new or renewed policies ⁷. NCDOI's auto page says liability coverage is required in North Carolina along with uninsured motorist coverage ⁹. NCDOI noted that policyholders at the old minimums could expect higher premiums at renewal with the new limits ⁷. Our comparison of minimum and full coverage prices explains the difference between minimum and broader coverage.

A statewide average change is only one input. A renewal can also move because of new SDIP points, a newly licensed driver, a lost discount, a vehicle change, the 2025 minimum limits, or a company deviation from Bureau rates. Our guide to reading a renewal notice shows where those reasons usually appear. Asking the insurer or agent which factors changed is a reasonable first step, and you can compare quotes from several insurers to see whether a price is in line with others.

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NCDOI's Consumer Services Division answers auto insurance questions at 855-408-1212, and the department's website has a page to request assistance or file a complaint ⁹. For a question about a specific claim, start with your insurer and then NCDOI; we do not give claims advice. QuotePitStop is a lead-generation service, not an insurance company, agent or broker.

• ¹ Official record: G.S. 58-36-1, the Rate Bureau's role in proposing private passenger auto liability and physical damage rates, checked October 13, 2026.
• ² Official record: G.S. 58-36-15, the February 1 annual auto filing and public inspection of Bureau filings, checked October 13, 2026.
• ³ Official record: G.S. 58-36-30, deviations from Bureau rates and the notice for physical damage rates above the approved rate, checked October 13, 2026.
• ⁴ Official record: G.S. 58-36-65, the Safe Driver Incentive Plan, surcharge notices, the five-year surcharge for four-or-more-point convictions and the bar on age and gender classifications, checked October 13, 2026.
• ⁵ Official record: NCDOI's February 4, 2025 release, the 22.6% request, the 60-day review, settlement or hearing, and the 2023 request of 28.4% settled at 4.5% per year for two years, checked October 13, 2026.
• ⁶ Official record: NCDOI's June 9, 2025 release, the 5% average increase, 17.6 points below the request, the 16.3% motorcycle liability decrease, the October 1 effective date and the canceled hearing, checked October 13, 2026.
• ⁷ Official record: NCDOI's fact sheet on rating changes effective July 1, 2025, the new $50,000, $100,000 and $50,000 minimums replacing $30,000, $60,000 and $25,000, underinsured motorist coverage, the eight-year inexperienced operator surcharge and the five-year lookbacks, checked October 13, 2026.
• ⁸ Official record: G.S. 20-279.21, the $50,000, $100,000 and $50,000 minimum liability limits, checked October 13, 2026.
• ⁹ Official record: NCDOI's auto insurance consumer page, required coverages and the 855-408-1212 Consumer Services line, checked October 13, 2026.