AVERAGE PREMIUM FOR 2005 WAS $602.20
By one count, state's auto rates 6th lowest, by another they're 8th

Auto insurance rates in North Carolina rank sixth-lowest among all states, one rung down from fifth-lowest previously, according to the latest nationwide data.

Or not.

By another measure, the rates paid by N.C. motorists rank eighth-lowest, according to the state Insurance Department.

Either way, the department is pleased with the ranking because the other states ranked among the 10 lowest in auto rates are less densely populated than North Carolina, said spokeswoman Chrissy Pearson.

"The higher density the population is, the more cars you have on the road, and the more likely you are to have accidents," she said.

The latest data compiled by the National Association of Insurance Commissioners show that, in 2005, the average auto insurance premium in North Carolina was $602.20. That's lower than all but five states: Idaho, Iowa, Kansas, North Dakota and South Dakota.

The amount is the average consumers pay for auto insurance, which can include liability, collision and comprehensive coverage.

But the NAIC data doesn't include the surcharge that policy holders pay to subsidize coverage for drivers deemed too risky to insure. Those drivers are relegated to the state-created N.C. Reinsurance Facility for liability insurance.

Adding the surcharge would drop the state's ranking to eighth lowest, said Kevin Conley, the insurance department's chief actuary.

The surcharge is levied on liability insurance only. The average surcharge in 2005 was 11.2 percent of the liability bill, which would increase the average bill to $637.98, Conley said.

The NAIC cautions that state-by-state comparisons are tricky because so many factors affect premiums, such as accident rates, traffic density, auto theft statistics, repair costs and state laws. But Insurance Commissioner Jim Long is fond of touting the state's ranking. Joe Stewart, executive director of the Insurance Federation of North Carolina, which represents property and casualty insurers, contends that including the surcharge gives a better picture of where the state stands. Stewart calls it "a hidden subsidy to cover an inadequate premium paid by higher-risk drivers."

Highlighting the surcharge also ties in with the Insurance Federation's political agenda. That group backed a bill, introduced this year by Senate Majority Leader Tony Rand, that would have required insurers to disclose the amount of the surcharge in drivers' bills -- which isn't permitted under current law.

That bill, which was passed by the Senate but never was voted on by the state House, was viewed by consumer advocates and Long as part of a broader effort aimed at overhauling the way the state sets auto insurance rates. Rand also introduced a bill that would have done just that but later decided to create a study commission to scrutinize the issue.

The current surcharge rate, which went into effect when policies are renewed beginning Oct. 1, is 2.76 percent -- or about $11 for the average liability policy. That's down from 9.8 percent previously. Today's significantly lower surcharge, Pearson said, is a sign that the system is "self-correcting."

FROM THE CHARLOTTE OBSERVER, 10/19/2007

October 19, 2007

This Saturday, October 20th from 5 pm until 7 pm. Hamburgers, hot dogs, chips and drinks provided. Please see Paula for a food ticket upon your arrival.

The maze and picnic will be at The Country Time Farms. Directions: I-485 to Exit 44 Hwy 218. Go East 6 miles. Turn left on Clontz Road. Follow signs to Country Time Farms.

There will be a Haunted Woods from 7 pm to 11 pm. If you are interested, there will be a $8 charge per person.

RE/MAX Metro is looking forward to seeing you there. If you are "still thinking", please join the us and don't miss out on the fun family event!!

October 19, 2007

While home values are dropping in many areas -- and nationwide forecasts are gloomy -- experts say values are likely to continue to rise in other markets.

Including Charlotte.

Two of the top five markets in the country for home price appreciation are in North Carolina, according to a California company -- and one of them is Charlotte.

Veros Real Estate Solutions recently offered a forecast through the second quarter of next year. The company considered more than 50 factors, including interest rates, inventory of homes, unemployment rates, inflation, population and buildable land.

The Veros forecast predicts that the worst markets for home value decline all will be in California or Florida. Cities in those two states are skewing the national figures. The hardest-hit market will be Palm Bay-Melbourne-Titusville, Fla., with a decline of 9 percent.

The five cities that should experience the best home appreciation are Raleigh-Cary; Austin-Round Rock, Texas; Charlotte-Gastonia-Concord; Salt Lake City, Utah; Albuquerque, N.M.

Raleigh tops the national list at 7 percent.

Veros says Charlotte-area values should rise by 6 percent, through the middle of next year.


Allen Norwood, The Charlotte Observer

October 23, 2007

Several years have passed since our last blood drive here at the office. As there is a critical shortage of blood at this time, we thought it would be appropriate to once again roll up our sleeves and help.....

The Red Cross Bloodmobile will be here in the parking lot on Thursday, November, 1st from 9 am until 2 pm. There is a sign-up sheet at the front desk to facilitate the process. Please plan to spend about 45 minutes to an hour.

We will be participating in the Third Annual "Puppies for Patients" Program, where donors may sign a gift tag to be placed on a stuffed puppy and given to a child in a local hospital this Holiday Season.

Thanks in advance and hope to see many of you there!

October 25, 2007

Many economists expect the Federal Reserve to drop interest rates a quarter of a percentage point today, making it cheaper and easier for consumers and businesses to borrow money.

Also, a report due this morning on gross domestic product, the leading indicator of economic health, should show modest growth.
And an employment report due Friday likely will offer encouraging news, at least for professional-services cities such as Charlotte, some economists say.

This summer, the financial system sustained a "shock, much like after 9-11," notes John Silvia, chief economist at Wachovia...
Declines in residential housing, however, have been offset by increases in commercial construction across the country.

Silvia sees better times ahead, beginning with a decrease in interest rates -- should the Fed move that way today.

The Fed cut its target for the federal funds rate -- charged on overnight loans between banks -- a larger-than-expected half a percentage point, to 4.75 percent, on Sept. 18.,br>
Although some economists say dropping interest rates too much, too quickly could fuel inflation, Silvia says that's a risk the Fed has to take...
Wachovia economist Mark Vitner said a cut in interest rates would address vulnerable parts of the economy.

Many homeowners in the Carolinas and across the country have faced foreclosure as adjustable-rate mortgages have increased to higher monthly rates. Should the Fed lower interest rates, local homeowners who bought houses with these types of mortgages won't be hit as hard. Likewise, homeowners may be able to refinance under more favorable terms.

Unlike the deep and prolonged interest rate cuts under former Fed chief Alan Greenspan, any cuts now will be relatively short-lived, Vitner says.

"My message is take advantage of the low rates," Vitner says. "What the Fed giveth, they can taketh away."

As for GDP, Silvia sees modest economic growth at about 3 percent. "Not a boom," he said, "but decent."

"Everyone's readily aware the housing market is crashing nationwide," he said, "but in Charlotte it's holding up really well."

Moreover, Vitner notes that exports have risen about as fast as housing has been falling. "And commercial construction has stepped up -- just look at the construction in downtown Charlotte."

Mike Drummond:The Charlotte Observer

October 31, 2007

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