For most Americans in 2024, two things are true: the cost of your car or home insurance has risen yet again this year, and the election this fall has politics on your mind. Depending on where you live, the two could be more closely linked than you think. In 10 states — Delaware, Indiana, Missouri, New Hampshire, North Carolina, North Dakota, Utah, Vermont, Washington and West Virginia — state-level elections could lead to the election or appointment of a new insurance commissioner.
Bankrate’s editorial team analyzed these races and talked to state-level experts about their potential implications for the property insurance market.
State-level races may have bigger insurance impacts than the presidential election
For many matters of economic policy, we typically look to the presidential election as a forecast of how the next four years might influence our finances. More than two in five (43 percent) of Americans said their personal financial situation has gotten worse since the start of Biden’s presidency, and 37 percent said that Trump would be the best presidential candidate for their personal financial situation, according to Bankrate’s Election and Personal Finances Survey.
But when it comes to home and auto insurance — one small but significant piece of the personal finance pie — the president and federal government have little direct influence over rates. While potential Federal Reserve interest rate cuts could bring some financial relief to borrowers this fall, auto and home insurance are regulated at the state level, and premiums are predicted to continue to rise in most areas of the country.
Each state’s insurance commissioner works alongside state legislators and insurance companies to monitor rates, control fraud and determine best practices in the industry. In other words, in the realm of politics, it’s your state government, not the election between former President Donald Trump or Vice President Kamala Harris, that will have the greatest influence over the cost of your home and auto insurance in the next four years. And in 10 states in particular, governmental power over the insurance industry has the potential to change hands in November.
10 states could see a new insurance commissioner after the election
The primary players in insurance regulation are insurance commissioners. Each state has an insurance commissioner, but the position varies considerably between states. In 11 states, voters elect the insurance commissioner. In every other state, the commissioner is appointed either by the governor or by a special commission.
In 2024, four states are holding elections for the position of insurance commissioner: Delaware, North Carolina, North Dakota and Washington. Of the states where commissioners are appointed by the governor, six have open gubernatorial races in 2024: Indiana, Missouri, New Hampshire, Utah, Vermont and West Virginia. These are the 10 states where the election cycle has the greatest potential to impact the auto and home insurance markets this year.
Election spotlight: North Carolina
In North Carolina, Republican incumbent Mike Causey is facing off against Democratic challenger Natasha Marcus for the office of North Carolina Commissioner of Insurance.
Joe Stewart, vice president of governmental affairs at Independent Insurance Agents of North Carolina, called this year’s insurance commissioner race “a very dynamic election cycle.” North Carolina, he explains, is a purple state across the board, with concurrent races across the ballot often counterbalancing each other. “The insurance commissioner’s race is significant,” he says, “because in part, there’s been this really challenged property market for more than a year now, and a lot of people — especially on the coast, but everywhere — have seen pretty dramatic increases in their premium.”
Stewart’s not wrong. In North Carolina, average home insurance premiums for a policy with $300K in dwelling coverage range from as little as little as $1,747 per year in Charlotte to as high as $9,726 in coastal Wilmington — and even higher in small coastal towns like Hatteras, Kitty Hawk or Sneads Ferry. Since 2022, the state has seen an average 22 percent increase in home insurance premiums, all under Commissioner Causey’s watch.
However, it may actually be car insurance costs, and not home insurance, that drive voter choice in the commissioner election, Stewart says. “There’s been a tendency for voters to focus on, ‘Can I believe this candidate is going to hold the line on auto insurance rates?’” Compared to the national average, North Carolina’s car insurance rates are unexceptional — on average, residents pay about $300 less per year than the national average for full coverage. But North Carolina isn’t immune to rising rates, and average full coverage premiums in the state increased by 20 percent from June 2022 to June 2024.
The task facing both Causey and Marcus, Stewart says, is to convince voters that they can keep rates low without driving insurers out of an increasingly high-risk state. Voters want to hear that their commissioner will protect their interests as consumers, he says — “but your responsibility is really to maintain the marketplace. And that’s not something that fits neatly on a bumper sticker.”
Election spotlight: Indiana
Not all insurance-related races are as competitive as North Carolina’s — as Indiana demonstrates. While Republican Mike Braun and Democrat Jennifer McCormick’s gubernatorial match-up could bring in a new commissioner this fall, insurance experts on the ground say it’s not likely to change anything significant.
Steve Duff, CEO of Big I Indiana, highlights the bipartisan nature of insurance regulation in Indiana, noting that both Commissioner Amy Beard and House Majority Floor Leader Matt Lehman work across the aisle to balance consumer protection with support for businesses. “Indiana is probably one of the most positive insurance states for consumers in the country,” Duff says. “We have a conservative legislature; we have conservative courts; our department of insurance is good. There are other states out there that are not in that spot.”
But Duff says he “[doesn’t] see anything major changing with insurance with regard to the election.” In a state that leans red across the ballot, Republican Mike Braun is likely to win the governor’s seat. “Assuming he is re-elected,” Duff says, “I’m almost sure Commissioner Beard will stay there.” Even if Braun’s opponent, Democrat Jennifer McCormick, takes the gubernatorial race, Duff says that members of Indiana’s insurance industry “would work very hard to have her retain Commissioner Beard,” who he calls “a refreshing change in our Department of Insurance leadership.”
What does a state insurance commissioner do?
State insurance commissioners are responsible for overseeing the regulation of insurance in their state, from health insurance to life, auto and home insurance. The exact scope of a commissioner’s role varies from state to state, but the basic powers associated with this position allow the commissioner to:
- Approve rates filed by insurance carriers
- Subject insurers to regular financial examination
- Monitor and regulate claims handling processes
- License insurance agents
In other words, your state’s insurance commissioner is in charge of making sure that the industry operates in a fair and sustainable way.
Insurance commissioners from all 50 states work together through the National Association of Insurance Commissioners (NAIC) to collaborate and align their approaches to regulation. But collaboration doesn’t always mean agreement. While some states, like California, have a strict regulatory environment with tight controls on insurance companies, other states lean toward encouraging competition between insurers with looser regulation.
It’s not an easy job, Stewart says. “The commissioner’s got to strike that perfect balance with the rates to make sure that the carriers are enthusiastic about doing business in the state but are aggressive in pricing it as low as possible.” Insurance commissioners have a responsibility to protect consumers from unduly steep rate increases, but they also need to make it profitable for insurers to do business in their state. If the insurance commissioner in a given state shoots down any and all rate increases filed by insurance companies, he points out, insurers are likely to pull out of that state, leaving consumers without any access to coverage. “You might be a very popular insurance commissioner, but not for long!”
To learn more about your state’s current insurance commissioner, you can use the NAIC’s state department directory to look up your commissioner and find contact information for all department members.
How to prepare for your state’s election
If you’re concerned about the impact the election cycle could have on auto and home insurance in your state, you may want to take some steps to prepare for the November election:
- Research the races: If your state is electing an insurance commissioner or governor in 2024, look up the candidates’ platforms and their records on insurance-related matters.
- Look at the whole ballot: In addition to commissioners and governors, state legislators may have a hand in passing (or blocking) legislation that can impact home and auto insurance costs in your state. If you’re voting for lawmakers in 2024, consider looking into their voting record when it comes to matters of insurance.
- Take the opportunity to shop: Ultimately, comparing rates between insurers may have more power to impact your personal insurance costs than any election. It’s always a good idea to shop around if you feel like you’re overpaying for coverage.
Keep in mind that insurance is a complex industry that responds to a wide range of factors — including personal factors. While political shifts in the wake of the election could change the regulatory landscape in your state, your own choices — what coverage to purchase, which carrier to work with, how to improve your driving or fortify your home — may have the greatest impact on the cost of your policies. Whether your state elects or appoints a new insurance commissioner this fall or not, keep an eye on your insurance rates. If your rates are increasing, it may be time to review your coverage selections and potentially shop around for a new carrier.
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Bankrate utilizes Quadrant Information Services to analyze August 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C.
Auto insurance
Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Homeowners insurance
Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $300,000
- Coverage B, Other Structures: $30,000
- Coverage C, Personal Property: $150,000
- Coverage D, Loss of Use: $60,000
- Coverage E, Liability: $500,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
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