Liberty Mutual, a Boston-based insurer with more than a quarter-million New York auto policyholders, has agreed to reduce premiums by an average of three percent.
Liberty Mutual’s New York customers, who are insured either through the Liberty Mutual Fire Insurance Company or The First Liberty Insurance Company, will cumulatively realize savings of $14 million. The new rate schedule began immediately for new business and Aug. 7, 2005 for renewals. The state insurance department estimates that 240,000 policyholders will receive a rate decrease.
Liberty Mutual is the tenth insurer to reduce their New York auto rates in 2005. The other insurers and the estimated savings for their customers include Allstate ($50 million), Amica Mutual ($12 million), GEICO ($100 million), MetLife ($15 million), Nationwide ($18 million), New York Central Mutual ($15 million), Progressive ($33 million), State Farm ($53 million) and Travelers ($33 million).
The statewide savings from all of these rate reductions, coupled with another $6 million in cuts from six smaller auto insurers, now stand at $349 million.