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NC Laws Might Impact Car Insurance Rate Caps

Car insurance coverage laws are ever changing which for many people can be a double edged sword for them. Every time that the majority party in the Senate or House changes, the newly elected politicians changes the rules in regards to car insurance laws.
In the state of North Carolina, the General Assembly will be voting on three car insurance related bills soon. These bills are called Senate Bill 477, Senate Bill 490, and House Bill 834. The bills are controversial because if passed and enacted they would make residents in the state face higher monthly car insurance premiums.
What these bills aim to accomplish is to strip the state’s insurance commissioner of his authority to oversee the insurance rates that car insurance companies give to their policy holders. At this time, the commissioner can cap car insurance rates. If an insurer’s charging a person too much for their insurance premiums then they would get a refund check sent to them.
Many residents of North Carolina are upset because they feel that their consumer rights are not being protected by these bills. They limit the power of the insurance commissioner which to many feels unfair and unwarranted. Why try to fix the system if it is not broken at all?
It seems as though Republicans want to take this measure in order to promote free enterprise and allow additional car insurers to enter the market. More car insurance companies might flock to the state because of this move.
The question is whether the public’s interests are being followed. Most would say that consumers will be hurt by these laws if they are passed. In a bad economy, having higher car insurance rates is a huge burden to bear. North Carolina residents for the most part like their car insurance rates. The state currently has the eighth lowest rates in the US and has the best insurance rates in the entire southeastern region of the United States. Policy holders even received fifty million dollars in refunds from refunds so it seems as though these laws were not at all crafted because of public outcry.
Many people are wondering why the state even will have an insurance commission if these three laws do end up getting passed. His job is to regulate car insurance rates and get refunds from car insurers that charge too much for their monthly premiums. If he loses his authority, then the caps on car insurance rates would disappear which would mean that the car insurance companies would be left to in essence regulate themselves.
Car insurance rates have been low for years but without caps and proper regulations and rules in place, then the whole system could become out of control. The health insurance industry has been suffering for years with excessive premium rate increases and consumers are fed up with it.
Politicians are supposed to work for the people so these bills should be seriously evaluated by industry insiders and experts to see how they would impact consumers. North Carolina residents need to try and get their politicians to listen to them or else they will wind up with higher car insurance rates. In today’s economy, even spending an extra ten to twenty dollars per month on car insurance premiums can be a tough pill to swallow.
Source: Raleigh Telegram

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