North Carolina Insurance Commissioner Mike Causey says he’s not in agreement with the state’s Rate Bureau’s proposed 23% rate increase for automobile insurance, according to a press release his office issued last week. 

Causey says in the release that his office is setting a hearing date for Sept. 22 to discuss the proposed rate increase. 

“The purpose of the hearing is to reach a resolution that will make the most financial sense for both North Carolina residents and insurance companies,” Causey says in the release. 

The hearing could be canceled if Causey’s office and the Rate Bureau negotiate a settlement, the release says.

State law gives Causey 45 days to issue an order once the hearing concludes. Upon the issue of the order, the Rate Bureau has the right to appeal the decision before the North Carolina Court of Appeals. A Court of Appeals order could then be appealed to the North Carolina Supreme Court. 

According to a previous press release, the insurance companies are asking that the rate increase take effect Oct. 1. 

Last year, insurance costs hit record levels. The average annual premium was $2,543, up 26% from 2023, according to J.D. Power.

ValuePenguin predicts drivers will pay an average of 7.5% more this year for auto insurance as the new year kicked off with an average nationwide monthly premium of $175 for full coverage. Nevada, Florida, and Michigan premiums are the highest at more than $250 a month, according to ValuePenguin’s “State of Auto Insurance in 2025” report.

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