SOUTH JERSEY (KYW Newsradio) — A recent study finds car insurance rates in New Jersey are rising faster than in other states.
Car insurance premiums will increase by an estimated 10.46% for New Jersey drivers this year, more than in any other state, according to a study by Lending Tree’s ValuePenguin team. Analyst Rob Bhatt said part of that is because New Jersey delayed and denied rate increases the last few years.
“In some states, it’s just harder to get rate increases approved,” he explained, “and so sometimes it takes longer for insurance companies' revenue from the rates they charge to catch up with the cost.”
Some of New Jersey’s insurance costs are structural. A high-income, densely populated state means more accidents with expensive cars and there’s not much to do about that.
Gary La Spisa, senior vice president of the Insurance Council of New Jersey, said there is room for improvement. He added the organization is excited about working with the Sherrill administration to bring down costs.
“We’ve been in communication with them about our concerns about the prior administration, and we look forward to working with them moving forward to hopefully lower costs for everyone.”
La Spisa and Bhatt have both advised customers to shop around to make sure they are getting the best deal available to them.