by Alan Smith
• North Carolina’s automobile insurance system guarantees profits to insurers.
• North Carolina’s current system makes it difficult—and undesirable—for insurers to offer innovative new products in the state.
• Residents across the Southeast states pay relatively low rates for automobile insurance.
• North Carolina’s automobile insurance system imposes a special tax on all drivers in order to subsidize coverage for risky drivers.
• More than a fifth of North Carolina drivers cannot find a private insurer willing to write them liability coverage.
• State regulation does not keep auto insurance rates in North Carolina lower than those in other states.
• Currently pending legislation still gives the insurance commissioner authority over most rate requests and would not result in significant short-term rate increases for anybody.