LIBERTY MUTUAL AGREES TO CUT NEW YORK AUTO INSURANCE RATES
Acting Superintendent of Insurance Howard Mills today announced that Liberty Mutual, a Boston-based insurer with more than a quarter-million New York auto policyholders, has agreed to reduce their customers’ premiums by an average of 3 percent.
"Governor Pataki’s fraud-fighting and regulatory reform successes will save New York’s drivers almost $350 million this year in insurance premiums," Acting Superintendent Mills stated. "We are pleased that Liberty Mutual has agreed to take this step."
Liberty Mutual’s New York customers, who are insured either through the Liberty Mutual Fire Insurance Company or The First Liberty Insurance Company, will cumulatively realize savings of $14 million. The new rate schedule takes effect today (May 9, 2005) for new business and Aug. 7, 2005 for renewals. The Insurance Department estimates that 240,000 policyholders will receive a rate decrease.
Liberty Mutual is the tenth major insurer to reduce their New York auto rates in 2005. The other insurers and the estimated savings for their customers include Allstate ($50 million), Amica Mutual ($12 million), GEICO ($100 million), MetLife ($15 million), Nationwide ($18 million), New York Central Mutual ($15 million), Progressive ($33 million), State Farm ($53 million) and Travelers ($33 million). The statewide savings from all of these rate reductions, coupled with another $6 million in cuts from six smaller auto insurers, now stand at $349 million.
The Insurance Department wrote to some of the state’s largest insurers in late 2004 and asked that they meet with the agency’s senior management team to discuss possible rate reductions. The correspondence cited compelling industry data indicating that New York auto insurers’ losses had dropped substantially between 2002 and the third quarter of 2004. Discussions with other carriers are continuing.
