North Carolina has the honor of having some of the lowest auto insurance rates in the country. But that could change if industry-backed legislation passes. According to Bloomberg Businessweek, North Carolina’s top insurance regulator says the move would increase rates by up to 15 percent a year and cause problems with the state regulatory system.  “The bottom line here is this: insurance companies want more of your money. These proposals would no doubt lead to higher car insurance rates,” Insurance Commissioner Wayne Goodwin said at a news conference according to Bloomberg Businessweek.

The report sites Insure.com’s findings that a 40-year-old single male driver who commutes 12 miles to work in North Carolina would pay $1,154 a year, compared to $1,561 as a national average. That makes North Carolina the seventh lowest in the country for auto insurance. So why are the state’s rates so low? Officials say it’s because the state’s insurance commissioner can currently limit auto insurance rates. “Really the best regulator of price is competition,” said David Stoller, a lobbyist for State Farm Mutual Automobile Insurance Co, according to Bloomberg Businessweek. “That’s why companies advertise, they want to compete on rates.”

The 175 auto insurance companies with customers in North Carolina are required to propose a common increase or decrease to rates which is reviewed by staff in the insurance department. Under new proposed legislation, auto insurance companies could raise their rates by up to 15 percent without approval from the insurance department. Companies would also be able to consider a customer’s credit score when setting their rate.