New York State
New York, September 16, 1998
NEW YORKS LARGEST AUTO INSURERS TO DECREASE RATES
More Than Three Million Drivers Will See Savings
Superintendent of Insurance Neil D. Levin today announced that six of the largest automobile insurance writers in New York State have decreased their rates by as much as 6.7 percent giving more than three million drivers statewide significant savings on their automobile insurance premiums.
"These decreases prove once and for all that New Yorks competitive marketplace is driving down rates bringing much-needed savings to consumers throughout the state," said Superintendent Levin. "The reforms we have implemented are turning the market around, and for the last two years we have seen overall rate decreases for auto insurance. The good news is we expect that this trend will continue."
The six insurers include State Farm Mutual, GEICO and GEICO General, Allstate Indemnity, New York Central Mutual Fire, and the Progressive Group. In addition, the states largest auto insurer, Allstate Insurance Company, has filed for a 2.7% rate decrease. Liberty Mutual, the sixth largest auto insurer, has announced a 5.7% decrease, which will result in an average savings of $85 per policy. In total, these eight insurers represent nearly 45% of the New York marketplace.
Todays announcement is the culmination of the Departments efforts to turn the auto market around and reduce rates. Last year marked the first time since 1974, when no-fault insurance was implemented, that overall auto insurance rates in New York decreased. In 1997, however, 31 insurance companies filed for rate decreases, including Allstate, the state's largest auto insurer, which decreased its comprehensive rates by 20 percent statewide. So far in 1998, 38 auto insurers have filed for rate decreases.
The following are the overall average rate reductions for the States largest auto insurers:
|Insurer||NY Market Share||Average Decrease||Effective|
|Allstate Insurance Co.||13.7%||-2.7%||Pending|
|State Farm Mutual Automobile Ins. Co.||10.8%||-3.6%||Sept. 1|
|GEICO and GEICO General Ins. Co.||6.5%||-2.1%||Sept. 15|
|Progressive Group||3.9%||-6.7%||Sept. 15|
|Allstate Indemnity Co.||3.4%||-0.8%||August 17|
|Liberty Mutual Fire Ins. Co.||3.0%||-5.7%||Pending|
|New York Central Mutual Fire Ins. Co.||2.8%||-5.6%||August 1|