Those would be the Geico cavemen, jumping forjoy over a bill (A. 11693/ S.8624) that would allow
auto insurance companies to raise rates up to 5%
each year without approval from state regulators.
The bill is scheduled to report out of committee
today. The auto insurance deregulation provision
is attached to a bill that relates to underwriting
insurance policies for coastal areas.
New York state has the second highest auto
insurance premiums in the nation, with lower-
than-average claims payout.
A Consumer Federation Report found that rates
rose significantly more slowly over the last twenty
years in states that require prior approval, than in
states with weaker regulatory systems. The two
states with flexible rating, Texas and Alaska, had
significantly higher rate increases from 1989 through
1996, than states with a prior approval scheme
(70.8% versus 54%). [read more]
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