Increasing Competition in Auto Insurance Marketplace
(TRENTON) – Acting Governor Richard J. Codey announced today that Progressive, the nation's third largest auto insurer, is now writing policies in New Jersey. It is the fifth company to enter the marketplace since the reforms of 2003.
“This is another landmark day for our State,” said Codey. “It wasn’t long ago that major auto insurance companies were gearing up to leave New Jersey. Today, Progressive becomes the fifth company to enter the state in the last two years.”
“We welcome them into the marketplace and look forward to a long and profitable relationship. This is more good news for our drivers and our economy,” added Codey.
Today’s announcement was held in the Governor’s Outer Office. The Governor was joined by the Acting Commissioner of the Department of Banking and Insurance Donald Bryan, Progressive representatives Mike Esposito, New Jersey Product Manager for Drive Insurance and Jeff Briglia, New Jersey Product Manager for Progressive Direct.
“For too long New Jersey drivers had to sit back and watch while insurance companies offered their products and services to people in other states but not to people here,” said Bryan. “I think we see today that those days are long gone. The fact that companies want to invest and do business here means more choice and more potential savings for New Jersey drivers.”
In 2003, the New Jersey Legislature led by Assembly members Louis Greenwald (D-6), and Neil Cohen (D-20) and Senators Ronald Rice (D-28) and Raymond Lesniak (D-20), enacted sweeping reforms to the state’s restrictive auto insurance regulatory structure. Department officials point to that legislation as a major cause for the entry of national insurers like Progressive and the decision of others to recommit to the market and expand their investment in the state.
Bryan announced that more than $412 million has been returned to New Jersey drivers in the form of rate reductions and dividends since the reforms. Additionally, the introduction of Special Auto Insurance Policy, commonly known as the “Dollar-a-Day” policy, and the expansion of the availability of the Basic Policy have resulted in a reduction of more than 40,000 uninsured drivers on New Jersey roads.
Progressive has been approved to offer two of its top ten lines of auto insurance to New Jersey: Progressive Drive New Jersey and Progressive Direct.
Progressive Drive is designed for consumers who prefer the personal service of a local independent agent, while Progressive Direct is geared to consumers who would rather shop online or over the phone at their convenience to get comparison rates of other top companies.
“Independent agents throughout the country sell Drive Insurance more often than any other brand and we’re so pleased we can now invite agents to offer it to their customers in New Jersey,” said Mike Esposito, New Jersey product manager, Drive Insurance from Progressive. “Independent agents sell a variety of companies’ products, so they’re able to put together insurance packages for their customers that feature the best-of-breed companies. For auto, that means a package featuring Drive Insurance.”
New Jersey Progressive Direct Product Manager Jeff Briglia said: “We’re excited to show New Jersey drivers an easy way to shop for auto insurance, including our comparison rating service where consumers can see an up-to-the-minute display of rates that other drivers who share similar characteristics with them are getting. We think New Jersey consumers who visit our award-winning Web site may find shopping for and managing their auto insurance is easier than they ever thought possible.”
The Progressive Group of Insurance Companies has been in business since 1937. The Drive Group offers insurance through more than 30,000 independent insurance agencies and markets their products and services under the Drive Insurance from Progressive brand. There are now approximately 100 agencies throughout the state authorized to sell Drive Insurance.
The Progressive Direct Group of Insurance Companies offers insurance by phone at 1-800-PROGRESSIVE and online at www.progressivedirect.com. The company markets their products and services under the Progressive Direct brand. Shopping by phone will be available in New Jersey sometime next year.
Today’s announcement follows a trend of increased competition for auto insurance business and the continued downward pressure on auto insurance rates. In the two years since the reforms five new companies, including Progressive, GEICO, Mercury Indemnity, Esurance, and Amex have entered or re-entered the New Jersey market. Companies including State Farm, Liberty Mutual, Allstate, AIG and Travelers have reversed plans to leave the state or increased their presence in the market.
