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Letter to the Editor

New Print Ad Keeps Pressure On in New Jersey for Auto Insurance Reform

Appearing today in newspapers throughout the state, the ad seeks to enlist support from individual New Jerseyans for the Auto Insurance Competition and Choice Act (A-2625), sponsored by Assemblyman Lou Greenwald (D). The legislation would spur more competition among individual auto insurers and a greater choice of auto insurers doing business in New Jersey.

"Drivers deserve a system that promotes competition, encourages companies to sell auto insurance in New Jersey, and creates a stable market that offers more choices for consumers," said John Friedman, chairman of the Coalition for Auto Insurance Competition.

Friedman stated, "Four out of the six largest insurers in America already do not do business in New Jersey and when State Farm, the state's largest auto insurer, completes its withdrawal currently in process, that number will increase to five out of six."

Great American Spirit Insurance Company and Twin City Fire Insurance Company recently surrendered their New Jersey auto insurance business to Palisades Insurance Company Group, paying the company millions of dollars to take business off their hands.

In the CAIC ad, viewers are invited to visit the Coalition's website and contact their legislators to support the bill.

"Until reforms are made that promote greater consumer choice and industry competition, insurers will continue to lack the incentive to grow and invest capital in New Jersey, leaving drivers struggling to find someone to sell them coverage," Friedman said.

The latest figures show New Jersey has 47 percent fewer companies selling auto insurance than Illinois and more than a third fewer than neighboring New York and Pennsylvania. More than 20 auto insurance companies have left New Jersey in the past ten years.

"It's only natural to expect that consumers will shop around for the best deal if they have more choices. Competition and choice benefit consumers and when companies compete, consumers win," said Friedman.

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