For Immediate Release: June 5, 2014

Proposed Auto Insurance Legislation Hurts North Carolina Drivers

RALEIGH -- Insurance Commissioner Wayne Goodwin wants drivers to know the truth about a legislative proposal being falsely touted as the Good Driver Discount Bill.

"If this proposal passes, I am certain that car insurance rates will go up—even for good drivers," he said. "Despite what profit-driven insurance companies will tell you, I will have little to no authority to stop rates from going through the roof."

In North Carolina, the insurance commissioner sets a cap on car insurance rates, and insurance companies compete by offering discounts below the established cap. The proposed legislation would allow companies to opt out of the current system and bypass the cap set by the insurance commissioner.

The proposed change would dismantle a system that's working well. According to a recent study by the National Association of Insurance Commissioners, North Carolina has the sixth lowest average auto insurance rates in the country. The state also has a highly competitive market, with more than 150 companies writing auto insurance.

"Insurance companies can and do offer discounts in North Carolina. If they're not offering discounts here, it's because our rates are already so low. The insurance companies don't need a change in law to charge you less. The only reason they need a change in law is to charge you more," said Goodwin. "This bill has nothing to do with helping drivers. It has everything to do with insurance companies' bottom line."

There are more than 2,000 different car insurance discounts available in North Carolina. A full list is online at

Goodwin encourages North Carolinians to contact their state legislators and tell them to oppose the so-called Good Driver Discount Bill.