FOR IMMEDIATE RELEASE
INSURANCE RATES TO DROP FOR DRIVERS IN ASSIGNED RISK PLAN
Drivers in New York’s Automobile Insurance Plan (AIP), also known as the assigned risk plan, will see an overall 7% reduction in auto insurance premiums, the New York State Insurance Department announced today.
Superintendent Eric R. Dinallo said the new rate schedule will go into effect on Aug. 15 for new policies and Oct. 1 for policies being renewed. An estimated 130,000 policies will be affected.
“This rate reduction will result in statewide savings of nearly $20 million for new drivers and others in the assigned risk plan,” Superintendent Dinallo said. He explained that the rate reductions can be largely attributed to the Department’s continuing efforts to combat fraud, along with the willingness of district attorneys to prosecute no-fault auto insurance fraud cases.
The AIP is the insurer of last resort for individuals unable to obtain insurance otherwise, generally because they are drivers with little or no prior driving experience or those with poor driving records. Premiums charged in the AIP are determined according to a unified set of rates approved by the Insurance Department, no matter which auto insurance company actually issues the policy.
The number of drivers in the AIP peaked a decade ago at 1.7 million. Since then, the growing competitiveness of the state’s auto insurance industry has enabled most drivers to save money by obtaining coverage in the voluntary market.