Positive
Changes for New Jersey Drivers
For
decades a major auto insurance crisis existed in New Jersey, with
little being done to fix the problem. Too much bureaucracy and
red tape were forcing auto insurers to leave the State. As the
number of carriers dwindled, drivers were left with fewer choices,
and increasingly more expensive rates. As promised, Governor McGreevey
crafted New Jersey's first comprehensive Auto Insurance Reform
package. With less than a year in existence, drivers are already
seeing results.
- Returned
$86.6 million to 1.1 million drivers through voluntary rate
reductions by State Farm and USAA, and special dividends
from
NJM.
-
Attracted first new major insurance provider to the State in
almost a decade - Mercury General.
-
First expansion of operations in 25 years for Allstate - now
serving 20,000 more drivers.
-
State Farm stopped its practice of dropping 4,000 drivers each
month.
The
Governor also established additional measures to ensure that good,
honest drivers are not seeing higher premiums on their bill.
-
Good drivers no longer have to pay for bad drivers.
-
Implemented the toughest insurance fraud law in the nation and
increased convictions by 79%.
-
Cracked down on New Jersey's 600,000 uninsured drivers
- New
Dollar-a-Day policy provides a minimum level of coverage
to low-income drivers.
- Taking
uninsured drivers off the road - impounding their
cars when
insurance cannot be produced.
- The
Governor's Last Chance program initiated in
2002 resulted in 37,000 previously uninsured drivers
now contributing
more than $54 million to New Jersey's insurance system.
-
Required insurers quote drivers three different levels of coverage
- making it easier for drivers to choose the insurance coverage
they need, not necessarily the most expensive.
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