As the year comes to an end, local motorist groups in New Jersey cannot help, but look back at how auto insurance was like in the state before Governor James E. McGreevey signed the car insurance reform law. Recent reports show a large number of policy holders thankful for this said reform and are now happily enjoying their reduced auto policy rates. Commissioner Holly C. Bakke even commented that Gov. McGreevey’s reforms continue to produce positive results for consumers. According to Bakke, the vehicle insurance market is more competitive, resulting to better businesses in the state, and premium savings are received by deserving drivers with good driving records.
It was during 2003, Gov. McGreevey approved a legislative act that will transform New Jersey’s auto insurance market into a more competitive system – luring more service providers to put up businesses in the state by giving them more flexibility when it comes to the way they compute risk and premium rates. Experts described McGreevey’s action as an attempt to rescue drivers in the Garden state from paying very expensive premium charges.
Now that rates seems to go up, local groups find consolation on remembering the past years when an insurance bill that was turned into a law helped consumers manage their insurance costs. Included in this long list of consumer benefits bought upon by McGreevey’s insurance reform are:
- Launching of a car insurance purchasing guide, an online program to assist drivers in understanding coverage needs and premium computations
- Enactment of the “dollar-a-day” policy where a $15,000 emergency room will be available for only $360 or $365.
- Significant rate reductions by major insurers such as United Services Automobile Association, New Jersey Manufacturers Insurance Company, State Farm Insurance, and Mercury Insurance
- Creating more jobs by employing more than 500 new car insurance agents
- An estimated amount of $86 million was paid back to motorists through voluntary premium rate reductions made by insurance providers.
- Implementing the “last chance program” wooing roughly 37,000 drivers who do not have auto policies to have their vehicles insured, equating to approximately $54 million worth of revenues for the State insurance system
When asked on what may be the best thing that happened because of the reform made possible by Gov. McGreevey, Insurance Council of New Jersey former president John Tiene said that after the reform took effect, companies are now re-evaluating New Jersey and are studying what this new law is all about, and new car owners now find it easier and more convenient to find the coverage they need.