The auto insurance rates in New Jersey are very unpredictable and can really be really frustrating at times. They come in cycles that are unpredictable and there seems to be nothing that one can do. Even the lawmakers simply shrug their shoulders and state that it is a terrible thing to happen, but they claim that they can do nothing about it because New Jersey is such a crowded state.
Now, voters have found out that the lawmakers have no inclination to push these insurance reforms as they are being driven around by state cars, at the expense of the taxpayers. Hence, they have decided to speak up. Governor Jim McGreevey’s administration has arrived at a conclusion that the high rates are partially due to the lack of competition, which seems to have been fueled by New Jersey’s bureaucracy to discourage new companies from selling insurance here. However, after Geico came to New Jersey, the cost of auto insurance had dropped. But, now it seems to be heading up once again due to changes made by the McGreevey administration, where they didn’t address PIP or personal injury protection that covers medical costs for those involved in accidents.
The average PIP claims in New Jersey have risen by more than 65% since 2001, whereas, it had risen only to 36% in all other states that had no-fault insurance. The claims here are at $16,400 which is twice the national average cost.
So, the bottom line is that NJ pays 59% more for personal injury protection coverage and 27% more for total liability, when compared to drivers in other no-fault states.
The Christie administration wants to revamp the reforms by revising PIP coverage. Auto insurance major New Jersey Manufacturers Insurance Co. is now taking a big step by asking 425,000 policyholders to support these changes in Proposal 163. Policyholders can either tell the State Department of Banking and Insurance directly or via their website.
Earlier, there were less than 100 treatment codes that doctors used to submit to the insurance companies for payment. It was later expanded under Gov. Jon Corzine since the state found that doctors provided care outside the existing codes. Hence, as per the new proposal the list of codes would be expanded again to include other treatments such as back surgeries.
The administration also requires a guideline regarding attorney’s fees, as this was one of the reasons for the reforms to remain incomplete in the first place.
