You had to know this would come. A politician makes a blanket statement with no proof whatsoever and we become the bad guys. This is a highly competitive industry and if the costs are truly less it will come about without throwing accusations about making us the bad guys. Shame on this government official.
Of course there’s the possibility higher gas prices may not lower insurance premiums. There’s several things to consider here:
People are selling their SUVs for smaller (more fuel efficient cars). As much as I hate SUVs, ignoring the higher roll-over risk, a passenger in an SUV will have less severe injuries than one in a compact. Fewer SUVs could result in more injuries from accidents.
More people are car-pooling putting more people into each event. Where each car in a collision may have had one to two people involved, each now could have three to four people. More people = more injuries = higher costs.
Cyclists: say no more (hey, don’t attack me, I’m a bicycle commuter myself but I’ve seen how most ride and they’re just begging for an accident).
Motorcyclists: inexperienced riders on over-powered machines = organ donors.
Older cars: if you’re not selling your SUV you’re probably going to be keeping your old car a little longer than you used to since it’s better than a car payment. Older cars are often less safe without the newest safety technology but there’s also the mechanical issues to consider (balding tires, worn brakes and shocks, etc).
Medical costs have also been rising lately which means there’s an increased risk of higher claims costs per event. Hey, doctors have to buy gas too you know… so do the lawers (you KNOW a lawer isn’t going to struggle to make ends meet).
And if the Chicken Littles out there are right, there’s going to be a dozen major hurricanes every year for the next 50 years.
The NY Superintendent SHOULD be more educated than to think ONE factor being slightly reduced should immediately affect the overall rates of auto insurance. Like the other poster said, more smaller cars = more BI claims. More passengers = more BI & UIM claims. This increase SHOULD be temporary until the whining liberals allow a vote on drilling in the House so that we can all pay less. If we even begin to drill here, watch OPEC drop back to $1.50 per gallon. They do not need any more super jets and other toys from sitting on top of an oil well. The one Sheik owns most of CitiGroup now?
Typical politician looking to make points just like Spitzer so he can move to higher office.
Hey, drilling offshore or in the ANWR will not address today’s gas prices one iota. First, you have to build the platforms offshore and the roads into ANWR. Second, you have to actually FIND something. Third, once you find it, you have to build the pipelines to move it. Fourth, is there excess refinery capacity at present in the United States? Refineries can take up to ten years to build and put into operation. So, if you started drilling TODAY there might be no material impact on gasoline supplies (and presumably prices) for years to come.
In addition, the campaign slogans always refer to dependence on foreign oil. Gee, why don’t we buy and burn THEIRS first and leave ours for the future. Once the Saudis have no oil to sell, do you suppose we will have the time of day for them?
Having said that, the NY DOI suffers from an excess of “hubris” and tends to think that they are experts on every subject imaginable. It’s obviously a politically motivated and ignorant pronouncement by the commissioner.
Please do not add anything to this truthful data. Go back 10 years. If we all drove less in May, (billions of miles less, by the way) the insurance companies will pay less for that reason alone. All other factors would remain the same, GET IT! You can try and debate, higher costs, medical, court, parts, fees, etc. It won’t work, those factors are always there. I don’t know why anyone would try to think that the insurance companies would pay the same or more.
Show me the numbers from May 2007, and
May 2008. We shall see!!
Alex
Confused – yes premiums should go up. Premiums should be adjusted daily based on a weighted average of all gas station prices for 87 octane fuel within a 10 square block radius of your office with prices taken no later than 7:45am. The formula for deriving premium rate from gas price will be forwarded to you shortly as you obviously missed the memo that stated premiums will be based solely on gas prices from here on out.
Lowering the # of SUVs would have an indeterminate affect. While they are slightly safer for the passengers, they are essentially murder machines for the people they hit.
If you truly believe this, then why do you harp about mileage being increased to increase premiums. So what’s the truth whatever benefits you, very sad.
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You had to know this would come. A politician makes a blanket statement with no proof whatsoever and we become the bad guys. This is a highly competitive industry and if the costs are truly less it will come about without throwing accusations about making us the bad guys. Shame on this government official.
Of course there’s the possibility higher gas prices may not lower insurance premiums. There’s several things to consider here:
People are selling their SUVs for smaller (more fuel efficient cars). As much as I hate SUVs, ignoring the higher roll-over risk, a passenger in an SUV will have less severe injuries than one in a compact. Fewer SUVs could result in more injuries from accidents.
More people are car-pooling putting more people into each event. Where each car in a collision may have had one to two people involved, each now could have three to four people. More people = more injuries = higher costs.
Cyclists: say no more (hey, don’t attack me, I’m a bicycle commuter myself but I’ve seen how most ride and they’re just begging for an accident).
Motorcyclists: inexperienced riders on over-powered machines = organ donors.
Older cars: if you’re not selling your SUV you’re probably going to be keeping your old car a little longer than you used to since it’s better than a car payment. Older cars are often less safe without the newest safety technology but there’s also the mechanical issues to consider (balding tires, worn brakes and shocks, etc).
Medical costs have also been rising lately which means there’s an increased risk of higher claims costs per event. Hey, doctors have to buy gas too you know… so do the lawers (you KNOW a lawer isn’t going to struggle to make ends meet).
And if the Chicken Littles out there are right, there’s going to be a dozen major hurricanes every year for the next 50 years.
The NY Superintendent SHOULD be more educated than to think ONE factor being slightly reduced should immediately affect the overall rates of auto insurance. Like the other poster said, more smaller cars = more BI claims. More passengers = more BI & UIM claims. This increase SHOULD be temporary until the whining liberals allow a vote on drilling in the House so that we can all pay less. If we even begin to drill here, watch OPEC drop back to $1.50 per gallon. They do not need any more super jets and other toys from sitting on top of an oil well. The one Sheik owns most of CitiGroup now?
Typical politician looking to make points just like Spitzer so he can move to higher office.
Hey, drilling offshore or in the ANWR will not address today’s gas prices one iota. First, you have to build the platforms offshore and the roads into ANWR. Second, you have to actually FIND something. Third, once you find it, you have to build the pipelines to move it. Fourth, is there excess refinery capacity at present in the United States? Refineries can take up to ten years to build and put into operation. So, if you started drilling TODAY there might be no material impact on gasoline supplies (and presumably prices) for years to come.
In addition, the campaign slogans always refer to dependence on foreign oil. Gee, why don’t we buy and burn THEIRS first and leave ours for the future. Once the Saudis have no oil to sell, do you suppose we will have the time of day for them?
Having said that, the NY DOI suffers from an excess of “hubris” and tends to think that they are experts on every subject imaginable. It’s obviously a politically motivated and ignorant pronouncement by the commissioner.
Please do not add anything to this truthful data. Go back 10 years. If we all drove less in May, (billions of miles less, by the way) the insurance companies will pay less for that reason alone. All other factors would remain the same, GET IT! You can try and debate, higher costs, medical, court, parts, fees, etc. It won’t work, those factors are always there. I don’t know why anyone would try to think that the insurance companies would pay the same or more.
Show me the numbers from May 2007, and
May 2008. We shall see!!
Alex
Confused – yes premiums should go up. Premiums should be adjusted daily based on a weighted average of all gas station prices for 87 octane fuel within a 10 square block radius of your office with prices taken no later than 7:45am. The formula for deriving premium rate from gas price will be forwarded to you shortly as you obviously missed the memo that stated premiums will be based solely on gas prices from here on out.
Ah sarcasm, sweet sarcasm. Great stuff Confused.
Lowering the # of SUVs would have an indeterminate affect. While they are slightly safer for the passengers, they are essentially murder machines for the people they hit.
But gasoline is 50 cents less this week than last, should premiums go back up?
Dear insurers:
If you truly believe this, then why do you harp about mileage being increased to increase premiums. So what’s the truth whatever benefits you, very sad.
Einstein: you missed my sarcasm?