Comptroller Bill Thompson says the car insurance industry has raised premiums between 2000 and 2005 by nearly 29-percent, raking in 10 and a half billion dollars from premiums in 2005 alone. He also found companies were decreasing payouts for claims by more than 20 percent.
Thompson's report says drivers in the Bronx, Brooklyn and Queens are especially hard hit. He says it's not just a matter of customers shopping around for lower rates.
Comptroller Accuses Car Insurance Industry of Price-Gouging
New York, NY — The city comptroller released a report accusing the auto insurance industry of price-gouging.
Comptroller Bill Thompson says the car insurance industry has raised premiums between 2000 and 2005 by nearly 29-percent, raking in 10 and a half billion dollars from premiums in 2005 alone. He also found companies were decreasing payouts for claims by more than 20 percent.
Thompson’s report says drivers in the Bronx, Brooklyn and Queens are especially hard hit. He says it’s not just a matter of customers shopping around for lower rates.
Thompson said that we still think there is room even in the lowest of those companies to reduce their rates further based on what’s happened in the city and the state, based on the reduction of people filing no fault claims.
Thompson called on governor-elect Eliot Spitzer to create an Insurance Consumer Advocate office and called for the auto insurers to reduce their premiums by 15 percent or $1.5 billion a year.
Krista Conte, a spokeswoman for AllState Insurance Company in New York, said her company cut premiums statewide by three to five percent in 2005.
anon
Comptroller should call on mr. bloomberg to reassign the scum giving bogus vehicle and sanitation tickets to catch the scum breaking into cars daily, and that might also do something for insurance rates.
Boruch ben Tzvi HaKohaine Hoffinger
B“H
Woodrow Wilson said: ”The business of America is business.“
Is Derrick (not Lemereck) Nelson (the car burglar-vandal) out yet? He received a 3 mo. jail term after being arrested about 18 times.
When I expressed my anger at Nelson getting out soon he said: ”What, should they keep him in jail forever? Perhaps he had a bad background.”
Obviously this bochur doesn’t have a car that was burglarized. He also doesn’t have enough Ahavat Yisroel or Ahavat HaShem. He was wearing a black hat and jacket, not jeans.
Truth
Why is it that the insurance companies know how to take your money but you need a lawyer to get it back?!
Allstate is the worst when it comes to paying out a claim. The good hands are in your pocket.
Good article. Now we see whos fault the high premiums are instead of blaiming the lawyers.