For most Americans in 2024, two things are true: the cost of auto and home insurance has risen again this year, and politics will be on your mind with elections coming up this fall. Depending on where you live, the two may be more closely intertwined than you think. Ten states could elect or appoint new insurance commissioners in state-level elections: Delaware, Indiana, Missouri, New Hampshire, North Carolina, North Dakota, Utah, Vermont, Washington and West Virginia.
Bankrate’s editorial team analyzed these races and spoke with state-level experts about their potential impact on the property insurance market.
State-level elections could have a bigger impact on insurance than presidential elections
For many issues of economic policy, we typically look to the presidential election to predict how the next four years will affect our finances. According to Bankrate’s Election & Personal Finance Survey, more than two in five Americans (43%) say their personal financial situation has worsened since President Biden took office, and 37% say Trump would be the best presidential candidate for their financial situation.
But when it comes to a small but important piece of the personal finance pie: home and auto insurance, the president and the federal government have little direct influence on rates. While potential interest rate cuts from the Federal Reserve could provide borrowers with some financial relief this fall, auto and home insurance are regulated at the state level, and premiums are expected to continue to rise in most parts of the country.
Insurance commissioners in each state work with state legislators and insurers to monitor premium rates, curb fraud, and determine best practices for the industry. In other words, in the political realm, it’s state governments, not the election of former President Donald Trump and Vice President Kamala Harris, that will have the greatest impact on the cost of home and auto insurance over the next four years. Ten states in particular could see a change in government control over the insurance industry in November.
Ten states could have new insurance commissioners after the election
The primary agent in insurance regulation is the insurance commissioner. Every state has an insurance commissioner, but the position varies widely from state to state. In 11 states, voters elect the insurance commissioner. In the rest of the states, the commissioner is appointed by the governor or a special commission.
Four states – Delaware, North Carolina, North Dakota and Washington – will have elections for insurance commissioners in 2024. Of the states where commissioners are appointed by the governor, six – Indiana, Missouri, New Hampshire, Utah, Vermont and West Virginia – will have gubernatorial elections in 2024. These are the 10 states whose election cycles are likely to have the greatest impact on the auto and home insurance market this year.
Election focus: North Carolina
In North Carolina, Republican incumbent Mike Causey is facing Democratic challenger Natasha Marcus for the seat of North Carolina Insurance Commissioner.
Joe Stewart, vice president of government relations for the North Carolina Independent Insurance Agents, called this year’s insurance commissioner election “a very dynamic election cycle.” He said North Carolina is a purple state across the board, and elections that run at the same time often run against each other. “The insurance commissioner election is important,” he said. “We’ve had a very tough real estate market for over a year now, and a lot of people have seen big increases in their insurance premiums, especially on the coasts, but everywhere.”
Stewart isn’t wrong. In North Carolina, average home insurance premiums for a $300,000 home policy range from $1,747 a year in Charlotte to $9,726 in coastal Wilmington, and even higher in smaller coastal towns like Hatteras, Kitty Hawk and Sneads Ferry. Since 2022, home insurance premiums in the state have increased an average of 22%, all on Causey’s watch.
But in reality, it may be the cost of auto insurance, not home insurance, that drives voters’ choices in the commissioner race, Stewart said. “Voters tend to look at, ‘Can I trust this candidate to keep my auto insurance rates constant?'” Compared to the national average, North Carolina’s auto insurance rates are no exception. On average, residents pay about $300 less per year for full coverage. But North Carolina isn’t immune to rising premiums, with the state’s average full coverage premium increasing 20% from June 2022 to June 2024.
The challenge facing both Causey and Marcus is convincing voters that they can keep premiums low without driving insurers out of increasingly risky states, Stewart said. Voters say they want to hear that commissioners will protect their interests as consumers, “but your responsibility is actually to maintain the marketplace. And that’s not something that fits neatly onto a bumper sticker,” he said.
Election highlights: Indiana
Not every insurance race is as tough as North Carolina’s, except in Indiana, where a gubernatorial contest between Republican Mike Braun and Democrat Jennifer McCormick could result in a new commissioner this fall, but insurance experts on the ground say it’s unlikely to make a big difference.
Steve Duff, CEO of Big I Indiana, emphasizes that Indiana’s insurance regulation is bipartisan, noting that Chair Amy Beard and House Majority Leader Matt Lehman work across party lines to balance protecting consumers and helping businesses. “Indiana is probably one of the most consumer-pro-insurance states in the country,” Duff says. “We have a conservative legislature, we have conservative courts, we have a great insurance department. There are other states that don’t have that situation.”
But Duff said, “I don’t see a lot changing in the insurance industry with regards to the election.” In a state where the ballot leans red overall, Republican Mike Brown is likely to win the governor’s seat. “Assuming he gets re-elected, Beard is pretty much guaranteed to stay,” Duff said. Even if Brown’s opponent, Democrat Jennifer McCormick, wins the gubernatorial race, Indiana insurance industry officials “will be lobbying hard to keep Beard in place,” Duff said, calling him “a refreshing change in leadership at the department.”
What does the State Insurance Commissioner do?
State insurance commissioners are responsible for overseeing insurance regulation in their state, from health insurance to life insurance to auto and home insurance. While the exact scope of the commissioner’s role varies by state, the basic powers associated with the position allow the commissioner to:
- Approving the rates submitted by the insurance company
- Subjecting insurance companies to periodic financial audits
- Monitoring and regulating the claims process
- Insurance agency license
In other words, state insurance commissioners are responsible for ensuring that the insurance industry operates in a fair and sustainable manner.
Insurance commissioners from all 50 states work together through the National Association of Insurance Commissioners (NAIC) to coordinate their regulatory efforts. But coordination doesn’t necessarily mean agreement. Some states, like California, have a strict regulatory environment for insurance companies, while others tend to be more relaxed and encourage competition among insurers.
It’s not an easy job, Stewart says. “Commissioners have to strike the perfect balance with rates, being aggressive with setting the lowest possible prices while also being eager for insurers to do business in the state.” Insurance commissioners have a responsibility to protect consumers from unreasonably steep rate increases, but at the same time, they need to ensure that insurers benefit from doing business in the state. If a state’s insurance commissioner rejected every rate increase proposed by insurers, he points out, there’s a good chance that insurers would pull out of the state and consumers would lose access to insurance. “You may be very popular as an insurance commissioner, but you won’t last long!”
To learn more about your state’s current insurance commissioner, you can use the NAIC’s State Department Directory to search for your commissioner and find contact information for all department members.
How to Prepare for State Elections
If you’re worried about how the election cycle will affect auto or home insurance in your state, we recommend taking a few steps to prepare for the November election.
- Investigate the race: If your state is electing an insurance commissioner or governor in 2024, research the candidates’ policy platforms and track records on insurance-related matters.
- Let’s take a look at the entire ballot: In addition to commissioners and governors, state legislators may also have a hand in passing (or blocking) bills that could affect the cost of home and auto insurance in your state. If you’re voting for a legislator in 2024, consider researching their voting record on insurance matters.
- Take advantage of this opportunity to shop: Ultimately, comparing rates between insurers can affect your personal premiums more than any choice you make, so if you feel like you’re paying too much for your insurance, it’s always a good idea to shop around for insurers.
Remember, insurance is a complex industry that responds to a variety of factors, including personal factors. Political changes following the election may alter the regulatory landscape in your state, but your own choices — what coverage you buy, which insurance company you work with, whether you improve your driving skills, or harden your home — may have the biggest impact on the cost of your insurance. Whether your state elects or appoints a new insurance commissioner this fall, keep an eye on your premiums. If your premiums are rising, it may be time to reassess your coverage choices and possibly look for a new insurer.
