New Jersey Auto Insurance Rate PIP Laws Need Review
February 8, 2012 – New Jersey Lawmakers will release the latest auto insurance Personal Injury Protection (PIP) proposals this month. Since late last year, the New Jersey Department of Banking and Insurance has worked out details of the new rules of the states proposed auto insurance personal insurance protection law. The changes should be quite comprehensive after policyholders, medical professionals, members of the public and auto insurance industry insiders all feel changes need to be made.
In 2011, the New Jersey insurance department found that the high cost of PIP, directly led to an increase in auto insurance rates. New proposals include the creation of a new hospital outpatient surgical facility fee schedule, reforming the insurance arbitration system and stricter monitoring of agencies that administer benefits for insurers, among many others. The changes in PIP regulations would only affect only 25 % of the auto insurance buyers. Members of the public and insurance company stakeholders will only have a right to comment on selective portions of the proposals, by the Administrative Procedure Act, enacted by the New Jersey Governor in March last year. According to a report by the National Association of Insurance Commissioners, the average combined personal auto insurance rates including liability, collision and comprehensive policies in New Jersey rose from $1,197.91 in 2008 to $1,217.96 in 2009.
Michael E. Dortch
President & Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania 19446
(800) 807-0762 ext. 602