State Farm Cuts Auto Rates In N.Y.
NU Online News Service, March 2, 8:30 p.m. EST?State Farm Mutual has filed a plan in New York that is expected to reduce auto premium rates by 5 percent on average across the state.[@@]
The announcement was made by New York State Insurance Department Acting Superintendent Howard Mills who said the savings for customers is estimated at $47 million in 2005 alone. He added that State Farm Fire & Casualty is cutting auto rates by an average of 4 percent, producing additional savings of about $6 million.
"The Insurance Department has now authorized rate reductions that will keep a quarter-billion dollars in the pockets of New York's drivers that would otherwise have gone toward auto insurance premium payments," said Mr. Mills in a statement.
Mr. Mills said New York Republican Gov. George Pataki's "commitment to fighting fraud and streamlining the insurance regulatory system are directly responsible for these extraordinary consumer savings and we're committed to building on these successes."
State Farm Mutual insures 1.1 million private passenger vehicles in the state, representing more than 11 percent of the market.
The reduced rates go into effect April 1 for new business, and May 1 for renewals.
State Farm is the seventh insurer to seek and receive approval for auto rate reductions in New York. The others are GEICO, Progressive, Nationwide, MetLife, Amica Mutual and Travelers.
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