|New York Insurance
Reduction Course Benefits
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NY Point & Insurance Reduction
Q. After completing the PIRP course, how do I receive the
A. The course sponsor should mail you a completion certificate
45 days after you complete the course. If you present your certificate
to your insurance company or agent within 90 days after course
completion, your liability and collision premium reduction will begin
immediately, retroactive to the date you completed the course. If you
present your certificate more than 90 days after course completion, the
insurer may issue the premium discount effective from the date
presented. If you do not receive your certificate within eight weeks
after completion, immediately contact the program sponsor. You may take
the course once every 36 months to maintain insurance reduction
Q. Will the PIRP
course prevent my insurance company from raising my premiums?
A. No. Insurance reduction does not prevent general premium
or premium increases due to violations or accidents. It provides a 10%
reduction for three years, from the base rate of your current
liability, no-fault and collision premiums.
Q. What if more than
one person named on a policy completes the Defensive Driving / PIRP
A. The insurance premium reduction applies to all motor vehicles
principally operated by the motorist who completes the course.
discount can be applied to only one driver for each covered vehicle.
Q. If I complete a
motorcycle safety/accident prevention course, does the insurance
reduction benefit extend to my automobile coverage?
A. Yes. The reduction applies to the liability and collision
insurance premiums for both your motorcycle and automobile.
Q. Will youthful
operators and drivers participating in assigned risk pool receive the
insurance premium discount?
A. Yes. Any insured driver who is the principal operator and
a Point & Insurance Reduction Program course will receive the
Q. If a youthful
operator is already
receiving a driver education discount, will the Defensive Driving /
PIRP discount also be applied?
A. Check with your insurance company or agent to find out if both
discounts will be given at the same time.
provided by the New York DMV about the New York Insurance Reduction
following information was provided by the New York DMV in regards to
the New York Insurance Discount to NY Defensive Driving (NY PIRP)
It is important to
note that insurance companies do not have the discretion to
decide whether or not to honor the motor vehicle accident prevention
course insurance premium reduction, regardless of whether the course is
delivered in a classroom or by a DMV approved alternate delivery
method. This is a mandatory reduction under the State Insurance
Law, primarily Section 2336(a). Any insurer that fails to observe
the law would naturally be subject to penalties. Any concerted effort
by an insurance company, as a whole, to deny the premium
reduction to eligible motorists would likely draw action from both the
New York State Insurance Department (NYSID) and the State Attorney
General for violating the law.
DMV has found that
most of these situations are the result of a misunderstanding on the
part of the motorist or someone working at the insurance agency level,
rather than a concerted effort at the insurance company level to deny
premium reduction. Consequently, informed communication between the
motorist and the insurer usually resolves “problems” without the need
for a formal complaint or formal intervention by DMV or the Insurance
on what to do when the insurer won’t issue the premium reduction:
the motorist to the information on the DMV website, the frequently
asked questions (FAQs) the C-32A brochure, etc. Urge them to
read the materials closely to be sure that they fully understand the
meaning of point reduction and insurance reduction. Explain to them
that if they are truly being denied the premium reduction, that NYS law
is on their side - Article 12-C of the V&T and Section 2336
of the Insurance Law (see attached). Suggest that the motorist
present this information to their insurance agent/broker company as a
first step in resolving what may be a simple misunderstanding.
Let the motorist know that they are entitled to file a complaint with
the Insurance Department against the insurer if they are unable
to resolve the matter with the insurer. The NYSID complaint link
is http://www.ins.state.ny.us/complhow.htm. The general public
phone number for NYSID is: 1-800-342-3736. NYSID publishes complaint
ratios on insurance companies every year so, in addition to the
possible penalties for not complying with the law, the negative
publicity associated with complaints should be reason enough for
insurers to follow the rules.
on what to do when an insurer won’t recognize the sponsor’s DMV-approved course.
has historically been a rare occurrence but with the beginning of
I-PIRP there may be instances where agents/brokers/companies are not
up-to-speed and are not fully aware that I-PIRP classes have
started. DMV has issued a press release and updated its
website and promotional materials and we have even notified the
Professional Insurance Agents Association of New York – which has
updated its website and advised its network of insurance agencies about
is expected to issue a circular letter to all insurers regarding
I-PIRP and the mandatory premium reduction for all NYS DMV approved
motor vehicle accident prevention courses – classroom and alternate
delivery methods. NYSID will be referring insurers to the DMV
website for a regularly updated list of approved sponsors and for
additional information about the program.
may want to handle any contact with an insurance company in the same
manner that it advises an affected motorist - to provide
information to the insurance company and inform them about the latest
developments in I-PIRP. Point the company to the information on the DMV
website, the frequently asked questions (FAQs) the C-32A brochure,
press release, etc. Share a copy of Article 12-C and Section
2336. Refer the company to the Insurance Department for more direction
on the legal requirements and obligations with regard to I-PIRP.
This should solve the problem. Sponsors that are unable to resolve a
problem with an insurance company may also contact the NYSID Property
and Casualty Insurance Bureau or the DMV Driver Training Programs
Bureau for additional guidance in this area.
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