North Carolina has some of the lowest vehicle insurance rates in the country; however, this advantage has a double-edged effect, as out-of-state trucking companies have been claiming in-state residency to obtain lower rates. The issue has reached the point that North Carolina Insurance Commissioner Wayne Goodwin has asked state lawmakers to lay down more stringent regulations over commercial vehicle insurance.
Ten years ago, regular motorists from New York and New Jersey did the same thing, registering their cars in North Carolina for lower insurance rates. The state General Assembly changed the law, preventing this practice.
Commissioner Goodwin said that the same thing is happening in the commercial vehicle insurance market, and he wants the law changed yet again.
"They have accidents in other states and the like. It impacts insurance rates for the legitimate businesses that are here, and it's becoming a growing problem," Goodwin remarked. "It's wrong, and we need to tackle it."
In the last few years, the North Carolina Reinsurance Facility raised its commercial rates due to considerable claim losses.
"We want to protect and help the legitimate companies that are doing business here from being taken advantage of by businesses that are basically lying, that are misleading the state and misleading insurance companies as to their presence in this state," Goodwin added.
The commissioner said that his office is drafting legislation for the General Assembly in April that would help differentiate legitimate companies in North Carolina and out-of-state entities looking to take advantage of the state’s rates.
