RALEIGH, N.C. – The price of auto insurance could rise by nearly 30% for drivers in North Carolina, if the N.C. Rate Bureau gets its way.

The bureau represents all car insurance companies in the state. It’s required, by law, to propose auto insurance rates each February to the North Carolina Department of Insurance.

This year, it proposed an increase of 28.4% for all private passenger vehicles.

Jason Tyson with the NCDOI says the next steps are for his staff and Insurance Commissioner Mike Causey to review that rate proposal and negotiate with the NC Rate Bureau.

“This is the first increase they've asked for in three years,” Tyson explained. “And it is 28.4%. And what we do is our staff, Commissioner Mike Causey and his staff thoroughly review the filing and determine whether that requested increase is justified or not based on what the data that they submitted.”

Jarred Chappell, with the N.C. Rate Bureau, cited several reasons to justify the 28.4% increase, including a “significant increase” in the average cost of claims since 2020.

“This is primarily due to limited availability in the new car market, rising costs of used cars, parts supply chain issues, and labor shortages in the auto repair market,” Chappell said.

Chappell went on to say, since 2008, rate increases approved by the commissioner of insurance have totaled 3.3%.

“Analysis of recent data shows that the current rates are not adequate to keep up with rising claim costs,” Chappell said.

Nationwide, car insurance rates are expected to rise by 8.4% across the U.S. in 2023, the biggest jump in six years, according to a recent report by Value Penguin.

If approved, the new auto insurance rate would go into effect Oct. 1, 2023.