Car Insurance Rates Going Up

New York State's Insurance Department recently approved rate hikes for six automobile insurance companies.

Farmers New Century was approved for a 7.4% increase

Aig Advantage 6.0%

Nationwide Mutual 2.8%

One Beacon 2.52%

Adirondack Ins. Exchange 2.51%

Liberty Group 2.30%

Dr. Hampton Finer, Deputy Superintendent for Rates and Competition says there are 48 more Insurance Companies with requests for rate hikes.

The good news is that Finer doesn't believe any more hike requests will be approved.

With high gas prices keeping people off the road and fewer vehicle accidents taking place in the state most drivers say they would think insurance rates would go down but aren't suprised that some are going up.

Ruth Varley has been driving for decades. "Everything is going up, gasoline, food. The prices at the supermarket are ridiculous"

Right now, Insurance companies cannot raise or lower their rates without the states permission.

That will change next year.

Beginning on Januray 1st, Insurance companies can raise and lower their rates on the own up to 5%.

Dr. Finer says the state believes this will actually stabilize rates in the future.

Well known insurance comapnies such as Geico (New York's leading vehicle insurance carrier), State Farm and Progressive actually pay out more in premiums than they collect.

Over at the State Insurance Department, Dr. Finer says that's as concerning.

"we have to make sure not only are insurance companies not overcharging on their rates, but are they charging enough to pay out on claims if they need to"