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Auto Insurance Rates Set To Roll Back In US State

Settlement with the North Carolina Rate Bureau removes the insurance industry's 2008 rate increase of 9.4%, and denies a request for an extra 1.4% increase this year

Some of the North Carolina drivers would benefit $50 million worth of refunds, as per an agreement that will roll back private auto insurance rates to 2006 levels and freeze them for two years – reported in Forbes.

The settlement with the North Carolina Rate Bureau removes the insurance industry’s 2008 rate increase of 9.4%, and denies a request for an extra 1.4% increase this year.

There are 3.8 million policyholders in North Carolina and about 1 million are eligible for refunds of varying amounts, so every driver will not be getting the benefits.

Higher rates took effect in December while the insurance industry requested the insurance regulators’ decision to order a large rate reduction. Companies had wanted a 12.9% increase, but Jim Long, former commissioner, ordered a 16% reduction, stating that the increase was not justified.