State lawmakers are reviewing North Carolina's complicated system of auto insurance regulations. A House committee thinks insurance premiums could be lowered.
If you've got a bad driving record -- or even if insurance companies just think you might be risky -- your auto insurance policy might be issued through what's known as a Reinsurance Facility. It's a program subsidized by fees that all drivers pay on their insurance policies.
A state House committee held a hearing yesterday [Monday] to determine if that system is working well. It commissioned a report that found that about a quarter of policies come through the subsidized system, which is higher than other states.
Some lawmakers want to consider replacing the system with another approach, like one used in South Carolina. But Insurance Commissioner Mike Causey told them that could lead to more uninsured drivers and higher costs.
“We have one of the most stable automobile insurance markets in the United States. We are consistently among the lowest average automobile insurance rates in the nation, where South Carolina has consistently in the highest," he said.