Auto insurance companies in New York, which already charge the second-highest auto insurance rates in the nation, would be able to hike monthly premiums by as much as 5% a year without the state's okay under a bill quietly introduced last week.
A law allowing auto insurance companies to hike or cut rates by 10% lapsed years ago, and the Insurance Department has had to sign off on all rate changes since then.
Consumer advocates fear the new bill, which sponsors are pushing to pass before the legislative session ends this week, will ultimately drive up costs at a faster rate.
For years, under a different insurance committee chairman, the Assembly refused the attempts by Senate Republicans to go back to a flex rating system.
The New York Insurance Superintendent has indicated in the past he supports allowing New York Auto insurers to raise or lower rates without permission up to a certain point.
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