As the few weeks of December come to an end, research information is finalized and car or vehicle insurance statistics are compiled. According to reports, New Jersey once again ranks in the top five states with highest car insurance rates and premiums in the country. This year, the state landed a number 2 spot and New Jersey drivers are wondering more than ever if something can be done about very expensive premium prices.
Reports say that despite the state’s ranking as having the most expensive car insurance cost all across United States, New Jersey motorists actually experienced a decline in premium rates. A study conducted by the National Association of Insurance Commissioners show that during 2009, motorists of this aggressively industrial state paid premiums that are 4% lower as compared to 2006 and 2007. In addition, tallies from each of the state’s counties confirm that premium rates have indeed fallen by 9.6% since record high prices back in 2004. Other statistics even reveal that while the US enjoyed a decline in car insurance costs by 5.6% since 2004, New Jersey did better with rates rolling back by as much as 9.6% – leaving consumers wondering why it is still ranked second in the country.
According to major insurance providers, this reported decline in New Jersey insurance premiums has nothing to do with the current amount drivers pay for their policy papers. Experts even say that highly publicized reports of consumers cutting back and prices going down are only ways to lighten up the mood during this season. A representative from one of the largest insurance companies in the state said that while it is true that the amount for each average driver did go down, it still does not eliminate the fact that an average driver elsewhere still spends a lot cheaper on vehicle insurance. This representative added that New Jersey consumers have a right to be happy with money they saved this year, but they should not be surprised to hear that they pay the 2nd highest amount in the country.
A report from Insurance Information Institute show that the nature of New Jersey as a highly urban state is one of the reasons why the state is almost near top of the list of expensive places to have a vehicle insured. This report states that other factors also contribute to steep premiums, such as having a very dense population, high number of uninsured motorists, bad portrayal from pop culture and from the media, and high theft rate of cars.