Auto Insurance Refunds Unlikely
NEW YORK. Feb. 24 (UPl)ÛÓMillions of motoristsÛª hopes for substantial refunds on their insurance have been dealt a sharp blow by rising inflation, the 1 nsuranec Service Office reported today.</br></br>Since August 1971, automobile insurance rates have dropped about 3.6 per cent, (he agency said. And when the energy crisis reduced traffic, lowered speed limits and reduced accidents this winter, many state insurance departments began pressing the companies either to reduce rates further or to make refunds to individual policy holders because of their reduced driving. A number of companies have announced their intention of doing this.</br></br>The Insurance Service Office said a report by a special task force of the National Association of Insurance Commissioners, comprised of state regulatory officials. now has cautioned that the operating cost of the insurance carriers is being increased so much by inflation that neither rate reductions or substantial refunds may be feasible.</br></br>The cost inflation items which particularly affect the cost of automobile insurance are those concerned with accidents, medical costs and aulo repair bills.</br></br>The report says semi-private hospital accommodations have gone up 5.7 per cent in 1973, physiciansÛª fees rose 4 per cent and average