Your elected official is currently considering a bill that could lead to major premium hikes for your auto and home insurance. Couched as consumer protection, this bill disregards the fact that New Jersey has strong laws and regulations* that protect consumers when they have a dispute with their insurer.
This bill would increase propensity for fraud, raising insurance costs for everyone. Insurance fraud already costs the average New Jersey family $1,300 a year and fraud would only be made easier by this new bill. Premiums for all New Jersey insurance policyholders could increase by a total of $2.5 billion.** New Jersey taxpayers end up footing the bill without the benefit of added protections.
Six other states have passed similar legislation with devastating results.
In New Jersey, a recent study shows that as a result of this legislation, mandated auto coverages could increase from 20% – 40%. Homeowners insurance could also increase by 17%. Florida passed similar legislation and, according to independent studies, some costs for personal auto insurance increased between 30% and 70%.**
There was a time when our insurance rates far surpassed any other state, and auto insurance companies wouldn’t even do business here. This bill sets us on a dangerous path back to those days, pricing consumers out of the market and leading to unsafe conditions with more uninsured drivers on New Jersey’s roads.
New Jersey already has some of the highest taxes in the country. Our elected representatives should not be supporting unnecessary legislation that increases costs for consumers.
Tell your elected officials to keep our insurance affordable.
A-3850/S-2144 would encourage excessive lawsuits, increasing the opportunity for fraud and costs for consumers.
We have seen insurance rates increase in states that have passed similar legislation and recent reports estimate New Jersey premiums could increase by a total of $2.5 billion.
Why would my insurance rates go up?
New Jersey has strong laws and regulations that protect consumers when they have a dispute with their insurer. This unnecessary bill opens the door for excessive and frivolous lawsuits. These outcomes increase costs that are then passed onto consumers in the form of higher insurance premiums.
How much would my insurance rates go up?
In five of the states where similar legislation passed, we saw increases in insurance premiums. According to independent studies, Florida saw bodily injury (BI) auto liability insurance costs increase between 30% and 70%. Recent reports estimate New Jersey could see increases from 20% to 40% for mandated auto insurance coverages. Homeowners insurance could also increase by 17%.