Liability Premium Increase – Fiscal Year 2025/2026
Insurance and Risk Management has received official notice from the NC Department of Insurance (DOI) and the Office of State Fire Marshal (OSFM) of a new automotive liability rate structure applicable to all state agencies and universities.
Effective July 1, 2025, the liability rate increase will have varying and significant financial impacts across departments. This marks the first major rate adjustment in over a decade driven by rising costs related to accidents, medical expenses, and insurance claims statewide.
Key Highlights Effective July 1, 2025:
Liability Premium Increase
- Total liability premium allocated increased
- FY 2024-25: $360,226
- FY 2025-26: $820,778
- Increase: 127.8% university-wide
- Rates are based on actuarial data and are aligned with Travelers Insurance costs to the State of North Carolina.
Variable Impact by Vehicle Type
- Premiums are calculated per vehicle category (e.g., sedans, trucks, buses) , so the impact of this change on individual departments will vary depending on the types of vehicles assigned
- Departments with a higher concentration of higher-rated vehicle types will see larger increases
Breakdown of Charges
- Detailed departmental breakdowns will be distributed to Origami Vehicle Coordinators.
Physical Damage Rates
- There are minimal changes to the collision and comprehensive premiums.
Insurance and Risk Management will provide departments with strategies to help minimize premium costs and manage risk exposure through vehicle type, claim history reviews, and accident prevention programs. A breakdown with recommendations will be shared with departments in the coming weeks.