An insurance trade group said New York's insurance regulator is wrong to assume that reduced mileage by auto policyholders translates into lower claim costs.
The Property Casualty Insurers Association of America (PCI) statement came after New York Insurance Superintendent Eric Dinallo convinced GEICO last Wednesday to withdraw a rate increase request for most of its auto insurance companies in the state.
Mr. Dinallo cited the impact of higher gas prices on the number of miles New Yorkers drive. But PCI said there is not necessarily an impact on claims because repairs cost more and frequency was trending downward before gasoline costs spiked upward.
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