GEICO TO CUT N.Y. RATES:

New York Superintendent of Insurance Gregory Serio announced that GEICO auto insurance customers will see an across-the-board rate reduction in 2005 resulting in a savings of 6 percent for a typical policyholder. GEICO’s decision will reportedly save existing private passenger vehicle policyholders more than $100 million. A direct writer, GEICO writes about 15 percent of the state’s total market share. In addition, GEICO received approval to alter its internal tiered rating system, a move that will link its customers’ improved driving performance with lower premiums. Serio last month asked GEICO and 12 other auto insurance carriers cumulatively serving more than 60 percent of the state’s drivers to meet with him to discuss possible rate reductions in light of industry data indicating that losses had dropped substantially between 2002 and the third quarter of 2004. Meetings with other carriers are in progress.

Topics New York