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Nationwide Insurance Lowering Auto Rates in New York

22 October 1998

Nationwide Insurance Lowering Auto Rates in New York

    LATHAM, N.Y., Oct. 21 -- Nationwide Insurance will lower its
auto insurance rates in New York State by an average of 2.9% effective Dec. 1.
    The overall savings for Nationwide's New York auto policyholders for the
next 12 months are estimated at some $10.7 million.  The rate decrease has
been filed with the New York Department of Insurance.
    Individual rates will vary up or down according to drivers' ages,
residence, accident and violation records, types and amounts of coverages, and
other factors, such as discounts.
    Nationwide last changed its auto insurance rates in New York last April
when there was a 2.5% average increase.  "We review our rates periodically and
we determined that an improvement in our recent claims experience justified
passing that savings onto our customers," said Terry Brown, vice president in
charge of the company's New York operations.  "We have seen a reduction in the
number of comprehensive, collision, and property damage claims," he said.
    The company will lower its comprehensive rates by 17.5%, collision rates
by 14.3%, and property damage liability rates by 6.8%.
    Property damage liability pays for damage caused to the property of others
by an at-fault driver.  Comprehensive coverage pays for stolen cars,
vandalism, and damage caused in a vehicle upset or damaged by falling objects.
    "In addition," Brown said, "Gov. George E. Pataki and Neil D. Levin, state
insurance superintendent, have helped make New York an even better place to do
business by reducing auto claims fraud by beefing up the Fraud Bureau and by
cutting red tape and burdensome bureaucracy."  Those efforts have contributed
to Nationwide's decision to reduce its auto insurance rates.
    Nationwide, based in Columbus, Ohio, is the country's fourth-largest and
New York's sixth-largest auto insurer.