American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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Brooke Kelley-Hunt


847-553-3671 or 847-894-3881





June 6, 2014

PCI Issues Statement Highlighting Consumer Benefits of North Carolina Good Driver Discount Bill

RALEIGH N.C. -The Property Casualty Insurers Association of America (PCI) is issuing the following statement in response to North Carolina Commissioner Wayne Goodwin’s concerns regarding proposed legislation to offer North Carolina drivers more choices when it comes to insurance. The following statement can be attributed to Oyango Snell, counsel, state government relations, who is available for interviews and to provide background for reporters covering this issue.

“As the name suggests, “The Good Driver Discount Bill” is simply a common sense approach to allow more good drivers in North Carolina an opportunity to save money on insurance by taking advantage of popular discount programs that are available in other states but not here.

Under the FAIR NC proposal, North Carolina drivers would benefit from a more competitive marketplace that would contribute to consumers having more choices that could potentially lower their automobile insurance rates.  Additionally, it would give insurance companies the flexibility to do things such as forgive tickets and accidents that the current mandatory points system does not provide.

Although Commissioner Goodwin has expressed concerns about regulatory control, the FAIR NC proposal enhances the commissioner’s authority by providing him with direct power to approve or reject rate increases filed by individual companies. The Good Driver Discount Bill ensures that the insurance commissioner has the ability to protect consumers from unjustified rate increases by giving him the authority to approve or reject rates. The prior approval rating system proposed is very common and has proven to have little or no effect on the relationship between rate levels and claim costs.  Additionally, research by the National Association of Insurance Commissioners has shown that profit levels are not impacted by the type of rate regulatory law in place. 

There are numerous automobile insurance discount programs that are currently available in North Carolina. However, the discount programs and products that many North Carolina consumers desire are not available because of the antiquated ratemaking regime. PCI members are proud that they are able to provide North Carolina consumers with very competitive rates – but good drivers are still paying more than they should for automobile insurance. PCI supports this legislation, which is focused on bringing new discount programs to North Carolina that will let good drivers save money.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.