N.Y. Assigned Risk Auto Rates Dropping 7%

July 23, 2007

Drivers insured through New York’s Automobile Insurance Plan (AIP), also known as the assigned risk plan, will see an overall 7 percent reduction in auto insurance premiums, the New York State Insurance Department announced.

Superintendent Eric R. Dinallo said the new rate schedule will go into effect on Aug. 15 for new policies and Oct. 1 for policies being renewed. An estimated 130,000 policies will be affected.

He said the rate reduction will result in statewide savings of nearly $20 million for new drivers and others in the assigned risk plan.

The AIP is the insurer of last resort for individuals unable to obtain insurance otherwise, generally because they are drivers with little or no prior driving experience or those with poor driving records. Premiums charged in the AIP are determined according to a unified set of rates approved by the insurance department, no matter which auto insurance company actually issues the policy.

The number of drivers in the AIP peaked a decade ago at 1.7 million but has gone down since then as insurers have competed more for business.

Source: N.Y. State Insurance Department

Was this article valuable?

Here are more articles you may enjoy.