Auto insurance premiums have been rising faster than Spider-Man climbing a building, and if you live in New Jersey, the trend is still going strong. The New Jersey Department of Banking and Insurance recently released statistics showing that providers have been pressing the button for rate hikes more frequently and at steeper percentages. Here’s what’s happening with your premiums and why you might have to pay more.
The Numbers Don t Lie (But They Do Hurt)
Significant rate increases have been requested by several of the largest vehicle insurance companies. For example, Allstate New Jersey requested a massive 29% hike that would take effect in December 2023, but regulators halted their request and only approved a 20% increase. At least a little less painful, but still heavy.
Not to be outdone, GEICO plans to make an adjustment in March 2024 and ask for a 23.4% raise. Even if it was reduced to 19.1%, that will still feel like a full tank of premium gas.
With authorized hikes in the double digits (12.5% and 11.0%, respectively), Liberty Mutual and Farmers also participated. With an 11.5% rate increase that was authorized exactly as is, State Farm Insurance appears to be playing it cool.
So, What s the Deal?
What is causing these rates to increase more quickly than the most recent Taylor Swift ticket prices? Inflation, increased repair costs, and an increase in accident claims are all mentioned by insurance providers. Additionally, newer cars are packed with expensive-to-repair technology—those fancy driver-assistance systems aren’t cheap!
The bottom lines of carriers have also been severely impacted by weather-related claims, such as hailstorms and floods, which has resulted in increased rates overall.
How It Affects You
Be prepared for a 20% hike in your premiums if you are an Allstate client in New Jersey. Fans of GEICO? Come spring, you should expect a jump of almost 19%. Even if your provider’s rate increases aren’t as significant for everyone else, they still have an impact.
What Can You Do?
Here are some steps you may take to lessen the harm before you lose your mind and start riding your bike everywhere:
- Shop Around Compare rates from different insurers. Loyalty doesn t always pay, and switching might save you.
- Raise Your Deductible If you can afford it, a higher deductible can lower your monthly premium.
- Bundle It Up Combining auto and home insurance with the same provider often comes with discounts.
- Ask for Discounts Whether it s good driving habits or a multi-car policy, there may be savings you re missing.
Even though these spikes are annoying, you may lessen the impact by being proactive about your coverage. And hey, think about learning to skateboard if everything else fails. There are no premiums there, so consider getting some knee pads instead!
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