FOR IMMEDIATE RELEASE
USAA REDUCING AUTO RATES IN 2006 BY AVERAGE OF 7.6 PERCENT
Superintendent of Insurance Howard Mills today announced that the USAA Group will reduce their automobile insurance rates an average of 7.6 percent in 2006, saving its private passenger members more than $14 million in premium payments annually."USAA exclusively serves members of the military and their families so approving the Groups rate filing is particularly gratifying because of all the sacrifices they are making these days on behalf of our country," Superintendent Mills said.
The USAA Group has about 103,000 New York auto insurance policyholders and is comprised of three companies: USAA, the USAA Casualty Insurance Company (USAA-CIC), and USAA General Indemnity Company (USAA-GIC). USAA members previously realized on average a 3.6 percent rate reduction in 2004.
The new rate structure for all companies in the USAA Group goes into effect in January 2006 for new business and renewals.
"The USAA Groups rate cuts are a further sign that Governor Patakis regulatory reforms and fraud-fighting initiatives are paying dividends," Superintendent Mills stated, referring to the inroads New York State has made in recent years combating auto insurance fraud.
The New York State Insurance Department has approved this year a record number of auto rate reductions, saving policyholders almost $400 million. More than 20 auto insurers, including the top three in terms of market share (Allstate, GEICO, and State Farm), are reducing their rates an average of 5 percent in 2005.