Governor David Paterson of New York announced a savings of almost $515 million for the states insured drivers. Car insurance providers there had proposed a nearly 8 percent increase in rates. Due higher gas prices, and decreased driving rates will increase only about 1 percent instead. Last year, New York drivers paid nearly $10 billion in auto insurance premiums.
Paterson said New York's Insurance Department asked insurance companies to consider reduced driving when setting their new rates. Several insurance providers reduced their rate hikes as a result.
“New York’s auto insurance rates are already the third highest in the nation, and if the original requests for rate increases had been approved, it would have cost New Yorkers more than $600 million,” Paterson said in a statement.
July was the 9th consecutive month to post a decrease in driving nation-wide according the the Federal Transportation Department.