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After having discussions with the New York State Insurance Department on how higher gas prices at the pumps are reducing the number of miles New York motorists drive, GEICO informed the New York Insurance Department it was withdrawing a rate increase request previously filed for GEICO.

This is a logical solution as paying more to gas up your car may mean paying less to insure it. Higher gas prices lead to less driving, and as New Yorkers drive less, the number of accidents should go down. Even Governor Paterson observed that there are fewer cars on the roads of New York as are elsewhere. Fewer accidents should also mean lower auto insurance claims costs for the insurance companies and therefore these savings should be passed on in the form of lower NY insurance rates for New York drivers.