Insurance Rates should Relate to Actual Costs
ALBANY, N.Y. – The Property Casualty Insurers Association of America (PCI) appreciates the New York Insurance Department's openness in discussing the issues associated with high gas prices, fewer miles driven and insurance rates; however, we urge them not to draw overly broad conclusions based solely on assumptions.
“We are disappointed in the department’s decision to deny most of the recent requested rate increases based on an assumption that higher gas prices and less driving has led to a reduction in losses due to auto accidents,” said Paul Magaril, regional manager and counsel for PCI. “This is an assumption that is not supported by the facts. A PCI study on the issue shows that, while consumers may be temporarily driving less, repair costs continue to increase.”
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