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NJ Auto Insurance Rates Among The Nation Highest – Why?

NJ Auto Insurance RatesPost Date October 5, 2012 - Residents of the Garden State all have expenses the all must pay on a month basis.  If you live in an Apartment or purchased and mortgaged a home; you are required to make a monthly payment. If you  have financed or leased a new or used car, you will have a required monthly car payment.  If that new or used car is registered in the state of New Jersey, you will be required to maintain financial responsibility and purchase NJ Auto Insurance.  Sadly; NJ Auto Insurance has among the highest rates in the United States.

NJ auto insurance rates are among the highest in the United States – Why?

There is a reason why New Jersey has the second highest monthly car insurance rates.  I have listed a number of points below indicating why NJ Auto Insurance rates are the second highest in the nation.

  •  NJ Auto Insurance statistic shows the costs of auto accident claims has increased drastically in the last 10 years. In 2002, the average cost per claim was nearly $10,000. In  2011 the average New Jersey cost per claim was slightly under $18000.00. This is an 80% increase.
  •  The New Jersey legislator and Department of Insurance is about install new rules for NJ Auto Insurance fee schedules.  The new fee schedules will be  extended from around 1,000 types of items to more than 2,000.
  •  The state is in the process of approving a new list for denying medical coverage for medical treatments and for resolving disputes with regards to NJ auto insurance claims below $1,000.
  •  Insurers servicing NJ auto insurance consumers are spending more for no-fault-related defense costs. In 2009 , defense costs have gone from 7% to 16 % of the NJ Auto Insurance rates in 2011.
  •   This next item is very unfair. Health care costs for NJ auto accident victims is higher than the medical treatments for same injuries caused by if someone fell out of a tree or fell off a bicycle.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
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