Senator Wants Auto Insurance Change

Senator Tony Rand is trying to make a difference in the world of auto insurance. He thinks that residents of the state deserve better rates and is trying to change the way that the state allows auto insurance rates to be both calculated and issued. If the bill is passed, North Carolina is going to be looking at better auto insurance rates for their residents.

Rand wants the state insurance commissioner’s ability to control auto insurance rates to be taken away. He thinks that the state’s business court should be handling auto insurance rates not the commissioner. He knows that those that are considered a bad risk will have to pay more in auto insurance through the new plan, but he thinks that everyone paying more so that those that are a bad risk don’t have to is just bad business.

He says that more than 1.5 million drivers are a bad risk to the auto insurance companies. He says that they have been put in what is called a reinsurance facility, and that is hurting the drivers who are not considered a risk. However, the insurance commissioner says that the facility takes care of those that cannot afford auto insurance. Without it, the bad drivers would not have auto insurance because of the pricing.

Rand says that it is costing the other drivers $250 million a year, and that is just not fair. He says that 84% of the auto insurance customers are good drivers, and they are paying for the 16% that aren’t. He wants to reduce the number of drivers that are allowed in the reinsurance facility.

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