Post Date December 16, 2013 – How much are you paying in New Jersey Car Insurance Rates? Are your New Jersey Car Insurance Rates going up? How much were you paying before? Ever wondered why you are paying almost double than what people were paying years ago?
New Jersey Car Insurance Rates Could Be Much Lower
The Consumer Federation of America (CFA) are are asking the same questions of states insurance regulator in New Jersey. Although the CFA is saying loose regulations on how auto insurance companies price consumers New Jersey Car Insurance Rates is the reason behind the increase in New Jersey car insurance rates. New Jersey state regulators are saying something very different.
According to the CFA, New Jersey car insurance rates have risen nearly 50% in the last 25 years. A recent study has concluded that price increases are due to factors on how New Jersey car insurance rates are regulated.
Some states have seen the complete opposite. The state of California has experience a decline on their average auto insurance rates between 1989-2010. In fact, they have experienced an auto insurance decrease of 0.3 percent in a 25-year period. The decrease and the stability of California auto insurance rates are being credited to the state’s reform on their auto insurance law and its competitive insurance market.
The CFA feels the less regulatory oversight on New Jersey car insurance rates had higher increases on their auto insurance rates. States with much stricter regulations, obligate insurers to seek approval before any rate increase. Those rules have seen lower rates increases for their consumers than those states that does not require prior approval from regulators.
The CFA is calling for state insurance regulators to adopt new regulations on their auto insurance laws and study how California’s regulations have impacted their rates.