First things first: independent agents (like us) do not set your insurance rates. Our job is to help you find the best coverage and value by comparing different companies and policies that fit your needs. We’re your advocates, not your price-setters!
How Are Insurance Rates Set in NC?
Insurance rates in North Carolina are determined by insurance companies—but with a big catch. They can’t just set rates on their own; everything is regulated and reviewed by the North Carolina Department of Insurance (NCDOI).
Here’s how the process works:
- Insurance Companies Gather Data:
Companies analyze risk factors like claims history in the state, severe weather trends, repair costs, and more. - Proposed Rates Are Submitted:
Insurance companies propose new rates based on their data and experience. - State Review:
The North Carolina Department of Insurance reviews these proposals. They may require adjustments, negotiate rates, or even hold public hearings. - Approval:
Only after state approval can new rates be used.
What Factors Affect Your Rate?
While the NCDOI reviews the overall rate proposals, the actual rate you pay depends on personal and local factors, such as:
- Where you live (location)
- Your claims history
- Your credit score (for some types of policies)
- The age and condition of your home or vehicle
- Any recent updates or changes to your coverage
Why Did My Rate Go Up?
If your premium increases, it’s usually not because your agent or even your specific company is trying to make a quick buck. Common reasons include:
- Higher claims in your area (like storms, floods, or wildfires)
- Rising costs for repairs and materials
- Changes to your personal risk profile (like a new car, roof, or claims history)
- Updates in state regulations
Your Agent’s Role
Your independent agent is your partner in understanding and navigating your options. We can:
- Help you understand your options if you’re facing a large increase
- Explain any changes in your coverage or pricing
- Help you build a comprehensive and accurate insurance portfolio
Remember, we don’t control the rates—we help you understand and make the best of what’s available!
Still Have Questions?
We know insurance can be confusing, but we’re here to make it as clear and straightforward as possible. If you have questions about your rates or want to explore your options, give us a call or send us a message. We’re here to help!