Originally published July 26 2005
Thirteen of New York's largest auto insurers to make cuts in premium costs
by Mike Adams, the Health Ranger, NaturalNews Editor
Since the New York state Insurance Department sent letters to the 13 largest insurance carriers in New York, showing that their overall losses had dropped considerably since 2002, the Rochester Democrat and Chronicle reports those providers (including Allstate) have announced they will be cutting their premium costs by three to 10 percent.
The news that the Allstate auto insurance premium for the two-car, two-driver Birthwright family will be cut by 3 percent the next time the policy is renewed was especially welcome.
Allstate is one of 13 auto insurance writers --- including the three largest carriers in New York state --- to cut rates by 3 percent to 10 percent this year.
The action came after the New York state Insurance Department sent letters to the largest insurance carriers last November showing that the overall loss ratio in the private passenger market had dropped considerably since 2002.
By June 30, 2004, that figure dropped to 61 cents and by the end of last year to 59 cents, according to the Insurance Department.
The savings that families realize will depend on the number of cars and drivers insured, plus the ages and past driving records of the drivers.
The insured vehicles are a 2001 Subaru, which the daughter drives, a 2002 Toyota and a 2006 Toyota.
Since Travelers agreed to a 5.5 percent price reduction, the family savings could amount to $121 a year.
While the carriers have been agreeing to the reductions over the last six months or so, many of their clients have yet to see the first reduction, said Insurance Department spokesman Mike Barry.
Under the new regulations, medical providers must submit claims to insurers in 45 days instead of 180, and injured parties have 30 days instead of 90 to file claims.
Add an increase in fraud arrests and the result is a reduction in premium payments for most state auto insurance customers.
And that's just added value for Birthwright, who puts safety at the top of his concerns when buying a car.
"The last car we bought was a Volkswagen Passat," he said.
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