GREENSBORO, NC – It appears insurance rates continue to rise, right? Well, get ready for it to happen again. Later in 2018, a hidden fee will increase and you won’t be able to see how much or what the fee is for.

The fee is called the recoupment surcharge and everyone in North Carolina pays it. But, get this, the fee is to cover all high-risk drivers in the state…and you pay it even if you’re a good driver.

Russ Dubinsky with the Insurance Federation of North Carolina explains, no one can tell you exactly how much you’re paying.

“The fee, unfortunately, is required to be hidden from you, under existing law. Not just required not to be disclosed, but it is required to be hidden from you.”

The fee will increase in the spring to 11.92 percent of your liability premium. At this point, you might be thinking, why am I paying to cover high risk drivers if I’m a careful driver?

Well, North Carolina has a reinsurance facility or residual market. It’s basically a non-profit that helps all high-risk drivers get insurance. But, the market doesn’t make enough to cover all the losses insurance companies suffer because of high risk drivers. So, years ago, the recoupment fee was established to help cover those losses.

Currently, there is a bill up for consideration, SB 137. If it were to pass, insurance companies would have to disclose the fee on your bill.

“Insurance providers would be forced to disclose the amount that their policyholders are forced to pay for these higher risk drivers that cause accidents.,” said Dubinsky.

The bill was introduced in 2017 but the Insurance Federation of North Carolina hopes the bill will be passed in 2018.