Motor insurance quote news
07/11/2008
Cover rates kept down in economic downturn
New Yorkers look set to enjoy some welcome relief from the economic downturn with cheap car insurance rates being pegged to a rise of less than one per cent next year.
Many car insurance companies had applied for increases as high as eight per cent, but the industry's regulator in the US state refused to allow them. He demanded they factor in that motorists would be driving less due to rising petrol costs.
Eric Dinallo, Insurance Superintendent for New York, said, "It is common sense. When gasoline prices are high, people drive less. When people drive less, they have fewer accidents and fewer claims. And the insurance rates should reflect that."
Fuel costs soared this year to record levels, reaching four US dollars a gallon (£2.32). While prices have dropped back somewhat, they still remain above three US dollars per gallon (£1.74). Prices per gallon in the UK are now about £5.
New York drivers pay the third highest level of insurance premiums across the USA.
As a result, research shows that American motorists have driven almost 63 billion miles less since last November. Drivers have been changing their motoring habits to save money - sharing rides, working from home and using public transport.
US insurers have protested about the restraint on premium increases, but cheaper car insurance is now certain to be available to New York state motorists in 2009.
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