New York Raising Insurance Rates for High-Risk Drivers

Rate filings made public by regulators show that the more than 90,000 high-risk drivers who get coverage through the state-run New York Automobile Insurance Plan (NYAIP) will see increased rates after June 1.

The NYAIP is the insurer of last resort for motorists in the state who have been denied coverage while making auto insurance comparisons on the voluntary market because they have too many accidents or tickets on record.

Enrollees in the NYAIP already pay substantially more for coverage compared with other drivers, but public rate filings show that, starting in June, drivers who renew coverage through the plan will see an overall premium increase of 21.4 percent. New enrollees will already be seeing the effects of the altered rates, as the new rates go into effect for them this week.

After the rate change, the average NYAIP premium will be $2,283, though individual prices will vary depending on where policyholders live, the types of cars they drive and the levels of coverage that they choose.

The average increase per driver as a result of the new rate filing is about $403.

The last overall rate change instituted for the high-risk pool was a year ago, when insurance premiums in the plan went up 15 percent overall.

The AIPSO, which administers the state’s high-risk insurance plan, wrote in its filing that the new rate change was necessary after reviewing loss experience between 2007 and 2009.

Average rates for comprehensive coverage will actually be dropping, while rates for bodily injury and property damage liability, personal injury protection and supplemental uninsured motorist coverage will all be increasing, according to filing documents.

The state’s high-risk pool has been consistently shrinking for the past few years.

Current enrollment represents a 50 percent drop from 2006, when there were nearly 181,900 drivers getting coverage through the state-run program.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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