Governor McGreevey's Auto Insurance Reform initiative is showing real progress in making auto insurance more accessible and affordable.

• United Services Automobile Association (USAA) voluntarily lowered insurance rates for 139,000 New Jersey policyholders
• Effective 12/1, overall rates were reduced 4.8%
• he average driver saved $56 per vehicle.
• New Jersey Manufacturers Insurance Company voluntarily lowered insurance rates for 595,000 New Jersey policyholders
  • Effective 6/1/04, overall rates will be reduced -0.8%
• State Farm decided to STOP dropping 4,000 policy holders each month
  • Thousands of NJ drivers are not going to be forced to shop for insurance
  • 40,000 vehicles that would have been randomly dropped by State Farm will retain coverage
  • Real results and tangible signs that progress in auto insurance reform is being achieved
• State Farm just lowered insurance rates to more than 500,000 thousand New Jersey policy holders
  • Effective 10/15/2004, overall rates will be reduced by 4.1%
  • $38 million will be returned to policyholders in the form of rate reductions. Policyholders will save as much as $70.
  • This is real results from the Governor's Auto Insurance Reform initiative
• State Farm lowers insurance rates again
• Effective May 1, 2003, overall rates will be reduced again by 5.1%
• Another $38 million will be returned to policyholders in the form of rate reductions, resulting in a $70 savings for policyholders.
• New auto insurance company coming to New Jersey for the first time in 7 years
  • Mercury Insurance, a large insurer on the west coast, is moving into New Jersey and hiring 50 agents to write auto insurance policies - mostly in our underserved urban areas
  • Help ease the accessibility problem people in getting an insurance policy
  • More results from Governor McGreevey's auto insurance reform iniative
• Allstate is expanding in operations in New Jersey
  • Hiring five new agents who can write coverage for more than 20,000 New Jersey drivers.
  • Allstate President Richard Crist credits the change in New Jersey to the Governor's reform package. "The New Jersey auto insurance market is changing, and we've gone from fighting red tape to fighting competition."
• State Farm lowers insurance rates again
• Effective May 1, overall rates will be reduced again by 5.1%
• Another $38 million will be returned to policyholders in the form of rate reductions, resulting in a $70 savings for policyholders.
• Created the Special Auto Insurance Policy to help reduce the ranks of the uninsured.
  • The "Dollar-a-Day" policy makes $15,000 worth of emergency room coverage available for $360 a year, or $365 if purchased in two six-month installments. This policy is available only to those drivers eligible for federal Medicaid.
• Unveiled a number of consumer initiatives to help drivers understand their insurance options and rights when shopping for auto insurance.
  • Launched the Auto Insurance Purchasing Planner, an online program to help New Jersey consumers understand the choices they need to make about the coverage they want and how much they want to pay for that coverage.
  • Adopted regulations requiring insurers to provide three separate price quotes and inform consumers of their rights under the law when shopping for auto insurance.

Articles:

Auto reforms fuel insurer
Trenton Times, Wednesday 4/07/2004

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Car insurance reform moves marketplace into fast lane
by Mark Perkiss, Trenton Times 12/1/03

When Gov. James E. McGreevey signed New Jersey's latest auto insurance
reform law in June, industry advocates were cautiously optimistic.

Today, with one new company entering the state, two companies rolling back
rates and State Farm ending its practice of not renewing drivers, the
early effect of the new law has caught insurance industry advocates by
surprise.

"Nobody anticipated the swiftness with which major things have happened in
the market because of this law, and the regulations to implement it aren't
even out yet," said John Tiene, vice president of New Jersey Skylands
Insurance Cos. and former president of the Insurance Council of New
Jersey.

In a matter of months, New Jersey has seen a new insurance company,
Mercury General, enter the state, and two other carriers, State Farm and
the United Services Automobile Association, announce rate reductions.
State Farm, which has filed to leave New Jersey, also has dropped its
practice of not renewing 4,000 vehicles a month.

"You have companies re-examining New Jersey trying to understand what the
new law means and customers with not so hard a time finding coverage,"
Tiene said.

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Benefits of McGreevey's Auto Insurance Reforms Materialize: First Major Insurer Enters Market

Keeping his promise to change the way New Jersey regulates the auto insurance industry, Governor James E. McGreevey recently welcomed the first new auto insurer to enter the New Jersey market since 1996. The announcement comes just two months after the Governor signed an auto insurance reform package that overhauls the State's auto insurance system. Mercury General will be hiring as many as 50 agents and plans to offer policies to drivers not renewed by State Farm Indemnity.

"Whether it is auto insurance, EZPass or DMV reform, we are delivering real change for New Jersey drivers," said McGreevey.

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State Farm cuts may lead to real auto-rate reform
A Home News Tribune editorial 9/19/03

Earlier this year, Gov. James E. McGreevey signed legislation designed to loosen state reigns on policy writers, increase competition, keep insurers from fleeing the state and in general promote a healthier marketplace for providers and policyholders.

In reaction, State Farm, New Jersey's largest auto insurer, announced on Wednesday it would lower rates by 4.1 percent as the result of its improved fiscal health brought about by regulatory rollbacks. About 500,000 drivers will be affected; an average driver will save about $70.

The bulk of New Jersey drivers haven't witnessed an unforced price break in their lifetimes. It feels good.

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