Gas prices may squelch NY insurance hikes
Insurance regulators say high prices at the gas pump may help keep a lid on New York’s auto insurance rates, which are the third highest in the country.
Insurance Superintendent Eric DiNallo says Geico agreed to withdraw a rate increase request for most of its customers after the Insurance Department questioned how higher gas prices are reducing auto travel in New York.
He says federal data show New Yorkers drove 500 million fewer miles in May than in the same month last year, so it stands to reason insurers costs would be lower because of the reduced traffic.
DiNallo says all insurers now must justify their rate-increase requests in light of the reduced traffic, and he expects others to follow Geico’s lead.
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Tags: Insurance