Insurance companies in North Carolina are pushing for a big rate hike.

The North Carolina Rate Bureau wants an average statewide increase of 19.5 percent.

Raymond Evans, General Manager or the NC Rate Bureau, said that insurance companies need more money to pay for claims because rates have been too low, for too long.

"The majority of that 19 percent is that we have an inadequate premium," Evans said.

The Rate Bureau is suggesting a 13.80 percent increase in Chatham, Durham, Orange and Wake Counties, a 15.60 percent increase in Cumberland County and a 32.90 percent increase for homeowners in the cities of Raleigh and Durham. Evans said the rate is higher inside the city limits of Durham and Raleigh because losses like fire and theft are more frequent and cost more.

Those living in coastal counties could face anywhere from a 55 to 70 percent hike mainly because of hurricanes, but the whole state could end up paying. That's because the insurance "pool" called the "Beach Plan" saves up money in-between storms, but if it can't pay for all the damage from a major hurricane, private state insurance companies would have to help.

"The money they need to be able to set aside to be able to respond to that [Beach Plan] is the cost of doing business in North Carolina," Evans said.

Kristin Milam, public information officer with the N.C. Department of Insurance, said the Commissioner of Insurance, Jim Long, will have the final say on any rate increase.

"He wants to do the best that he can for insurance consumers and also companies too, I mean we need to make sure that companies are able to pay these claims," Milam said.

Milam said to expect a decision on rate increases by the end of January at the latest.

Over the past 15 years the department of Insurance has developed a history of not giving insurance companies as high of a rate increase as they want. The last rake hike was in May of 2007 when the statewide average ended up being a little more than five percent. The NC Rate Bureau asked for an average 21.9 percent increase.