The NC Rate Bureau has opted to spread out a significant auto recoupment surcharge for commercial auto accounts slated for October. Rather than a one-time surcharge of 16.2 percent, the bureau has endorsed a 7.86 percent fee for this year, with the rest taking effect over the next one-to-two years.
The surcharge is needed to help replenish the state’s dwindling pool for uninsured motorists. This year’s 7.86 percent surcharge, still slated for October, will be in addition to an expected rate increase of 5-15 percent.
The recoupment fee will be applied to premiums upon renewal starting October 1, 2018 through September 30, 2019. An additional surcharge will be imposed next year, the details of which will be announced at a later date.
Rising auto rates are largely attributed to technology. Drivers are distracted, and technology is a big part of the problem, not just with regard to the devices that take drivers’ eyes and attention off the road, but also in the way of vehicle advancements that are costly to repair when damaged.