NJ car insurance rates getting outrageous again … thanks, Murphy!
Last year Givenor Murphy was in a giving mood to the insurance companies. So he signed a bill that would allow car insurance rates to shoot up again.
No one paid much attention when the bill was signed, but now the chickens have come home to roost.
People on our local NextDoor app are complaining about the outrageous increases in their car insurance premiums. God help you if you have younger drivers or any claims whatsoever.
Approximately 1.1 million to 1.2 million vehicles will be affected by this change, which accounts for 22 to 30% of New Jersey policyholders. It's actually not Murphy's fault. He just signed the bill that the Legislature came up with last year.
Why are NJ lawmakers making insurance rates worse?
New Jersey used to have the highest car insurance rates in the country. We are now down to 7th highest in the country. Why did your representatives in the Legislature pass a bill to let it go higher?
Here's how it works. The Legislature is made up of mostly attorneys. Attorneys make tons of money suing insurance companies. So, they want to keep the game going.
Insurance companies want to operate in New Jersey, but they can only take so much abuse from the lawyers, so they needed a rate increase. The game goes on with the U.S. as the pawns in their little game.
The official explanation is far less cynical. According to Auto Insurance writer Anamarie Waite:
"Car insurance in New Jersey is expensive because it's a no-fault state with the highest population density of any state in the country. In New Jersey, you can expect to pay approximately $6,080 per year for full coverage car insurance or $2,303 per year for minimum coverage."
But don't worry. The state of New Jersey offers some tips on how to save on your car insurance.
My favorite is don't buy a new car or a luxury vehicle to save on your car insurance bill.
So only the very wealthy can buy new or upscale cars, not you.
Another great suggestion from the bureaucrats in Trenton at the Division of Banking and Insurance is to take a higher deductible and less coverage for damage or injuries.
That's great. It's like the bully that punches you in the face and tells you where you can get ice to put on that nasty shiner.
Here's the final score. NJ Legislature lawyers: 2. NJ Insurance Companies: 2. You: 0. The Legislature gets the score with an assist by Murphy. Sorry for the sports analogy, but it's hockey season. I couldn't help it.
How overtaxed NJ drivers MacGyver their cars
Gallery Credit: Jeff Deminski
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Opinions expressed in the post above are those of New Jersey 101.5 talk show host Dennis Malloy only.
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