Nationwide cuts car insurance rates

Nationwide Insurance will cut its auto insurance rates for New York state customers, becoming the latest such company in the state to scale back its premiums.



Customers of Nationwide, which serves about 3.3% of the state's auto-insurance market, will see an average 5.2% rate cut applied to policies that are renewed on or after June 15. The Columbus, Ohio-based company's 214,000 New York policyholders are expected to save more than $18 million as a result.



The rate reductions come amid pressure by state regulators, who say their anti-fraud initiatives have led to a decline in claims. Last year, 61 cents of every premium dollar was used to pay claims, down from 86 cents in 2002. In recent months, State Farm announced premium cuts of up to 9%, Geico and MetLife Auto & Home announced cuts averaging 6%, and Progressive Northeastern Insurance Co. announced that it would cut some rates by 4%