In the year 2007, the drivers in the state of New Jersey breathed a sigh of relief because the cost of auto insurance moved down south. Despite the drop in the auto insurance rates, this state stood second in the list of states with high auto insurance rates with Washington D.C in the lead.
The annual report by the National Association of Insurance Commissioners said that the rates of auto insurance fell by 5.6% across the United States. The percentage of decrease in New Jersey, right from 2004 which saw sky high insurance prices, was 9.6%.
On an average, in 2007, the drivers in New Jersey paid about $1,109 for each vehicle. Though the insurance costs had fallen by 4%, this state still found a mention in the list of six states where auto insurance premiums surged beyond $1,000.
New Jersey Insurance Council’s Vice President, Chuck Leitgeb said that the market conditions have definitely improved since 2003 when the reforms were approved; however, due to the inherent costs of the state, the high premiums for auto insurance are unavoidable.
He also said “Costs that are built into the system followed by New Jersey cannot be eliminated. When you say the rates are high, you will have to remember there are reasons for it”. New Jersey in one of the most densely populated state in the US and also has an urban outlook. These facts coupled with the high rates of medical reimbursements, make insurance a costly affair in this place.
In addition to Leitgeb, the officials of state and lawmakers do agree that the market in this state has now become competitive, thanks to the reforms that were passed in the year 2003. These reforms enabled the insurance providers to retain a larger share of their profits and facilitated faster rate adjustment features.
This is the reason many companies that shunned business opportunities in New Jersey initially, have now set up business. When there were limited choices available, the drivers had no option but pay through their nose for insurance policies or forgo them.
The good news now is that, out of the 10 major players in the field of insurance, eight insurance providers have set up business here. The only two companies that are yet to herald their presence in the state are American Family Mutual and Nationwide.
Get a quote on New Jersey Car Insurance or New Jersey Auto Insurance now!