New York insurer says it won’t stop offering auto policy after state’s bailout
The New York City insurer, Wilson Insurance, said Monday that it won, at least temporarily, to continue selling auto insurance policies after New York Governor Andrew Cuomo said Monday the state would allow insurers to continue offering those policies.
Wilson Insurance said in a statement that Cuomo had made a clear commitment to make auto insurance affordable and accessible.
Wiltsons insurance policyholders will be able to keep their policy until the end of January.
Wilks insurers policies in New York have long been underwritten by state-operated Blue Cross Blue Shield.
The Blue Cross group has been under scrutiny since Cuomo announced a new plan last week that would raise rates on auto insurance.
The governor has said the plan would be paid for by the federal government, and he has said he wants to allow the insurance companies to raise rates by as much as 3 percent a year.
Wilkinson’s statement did not say what rate changes would be made, but Cuomo has repeatedly said he plans to increase rates for most auto policies.
Wiltsons statement said it has been unable to determine the precise impact of the governor’s announcement on insurance companies because insurance companies are still collecting rates and calculating premiums.
“We have no indication that any change to our policy prices would be impacted,” Wiltson said in its statement.
Wilkins said that the company would “continue to evaluate our position and make changes as appropriate.”
The insurer said it had sold more than $2 billion in auto insurance in New Jersey, Delaware and Virginia.
The state of New York is the only major metropolitan area that doesn’t have an auto insurance program.
The insurance industry has been at the center of political and political battles in New Mexico and Colorado, as the two states have passed laws requiring auto insurers to provide coverage for the disabled and to provide them coverage for accident victims.