Paul J. Wenner Stamford N.Y. car insurance needs changing As the current debate over auto insurance costs heats up across the state, a number of interests have publicized their views on reform, notably the state Trial Lawyers Association and the New York Public Interest Research Group. As one example, in 1995 state legislation more than doubled the statutory minimum requirement, a move that the state Trial Lawyers Association supported. At the time this legislation was passed, our state was ranked approximately 15th in automobile premium costs. After enactment, New York jumped to 4th or 5th. Fraud, theft and litigation costs are increasing in New York State, even as accidents decrease.
Consumers pay the higher premiums that inevitably result from growing legal and medical expenses.
While there are positive signs in regard to premiums, more needs to be done. New York does have a competitive insurance market. In 1997, for the first time in more than a decade, the overall statewide premium fell, as more than 13 companies have already sought rate decreases. One insurer has dropped its rate in New York 14 percent this year. New York's auto insurance market can still be bettered and made less costly.