Buckle up: Car insurance rate hikes coming this year and next

The cost of car insurance in North Carolina is about to go up.

Back in February, insurance companies asked the state for permission to raise auto insurance rates an average of 28.4 percent in 2024. The state insurance commissioner negotiated a compromise that raises rates, but not quite that much.

Drivers will see an average statewide auto rate increase of 4.5 percent this year and another 4.5 percent next year.

The State Department of Insurance says inflation is a factor – car repairs are more costly. But driving habits play a huge role in bumping up those rates.

"Driving while impaired, that's having the biggest impact on these rates," said DoI spokesman Jason Tyson.

According to U.S. News and World Report, North Carolina drivers still pay less than most others in the country. The magazine ranked North Carolina as the sixth lowest state in average auto insurance costs.

The next negotiation between the insurance companies and the state will happen in 2025.