Motorists from New Jersey may feel dismay after car insurance rates have dropped and yet, New Jersey still ranks second when it comes to the state that has the most expensive auto insurance premiums in the US.
For the first instance after many years, premium charges for coverage are declining in New Jersey and insurance providers are battling to keep their customer’s loyalty. Motorists groups even say that for the first time, they feel that insurance advertisements and highway billboards that cry out excellent offers speak the truth. It is an enormous transformation in a state where car insurance has long been considered a burden and somehow puts New Jersey alongside other states with admirable car insurance practices in the country. Insurance regulators say that around 75% of New Jersey’s motorists are now spending less for car insurance and that further decrease can be felt as 2009 closes.
According to reports from the Bergen County’s Statehouse Bureau and the Star-Ledger of Newark, rates in New Jersey have went done by approximately 9.6% since it soared sky high way back during 2004. From the years 2004 to 2007, the country experienced a nationwide drop in car insurance premium rates by around 5.6%, while New Jersey enjoyed 9.6%. In addition, the annual report released by the National Association of Insurance Commissioners shows that the average driver in Garden State paid approximately $1,100, an amount that is 4% lower compared to last year.
On the other hand, while all of these can be enjoyed by New Jersey drivers, the state follows Massachusetts as the state that charges the most expensive rates in the country. According to several motorists, it is such a disappointment to read about New Jersey dropping premium rates and still, the state has the second most expensive premiums throughout the US.
According to the Insurance Information Institute, the reason why New Jersey still ranks seconds is because its present improvement in insurance practices is still not enough to offset the extremely rates that was imposed during the years before 2004. Also, since car insurance prices have been going down all around the US, the states that ranked 3rd to 10th also experienced a decline in rates. In short, if New Jersey wants to compete with other states when it comes to ranking, it needs to do better.
Meanwhile, industry insiders say that it is still not too late for New Jersey’s ranking to improve. According to them, tallies from major insurance providers are yet to be seen. As the state enjoyed less accident reports and fewer cases of fraudulent claims, the rankings can still change until the last day of December.