Monday, 11 January 2010
New Jersey Auto Insurance Companies Hurting Themselves
A recent Auto Insurance Report shows that New Jersey auto insurance companies have been losing money since 2003. Auto insurance companies across the country have been stuck in aggressive price wars over the past few years which has led to rates that are too low to sustain a solvent business. This report suggests that New Jersey drivers may soon see higher auto insurance rates.
The auto insurance industry is going to make price changes across the country to balance their profits, and will likely increase the amount of money drivers spend on insurance. Many experts blame the poor economy for the low profit margins, and have seen drivers purchasing cheaper policies and investing less to save money.
Also the reports say that increases in health care spending have increased costs for auto insurance companies and were causing these companies to spend more on health care then they have in the past. However, the New Jersey Supreme Court just passed an insurer’s bid to pay lower medical bills for personal injury costs, which will help keep insurers prices from increasing too high.
Another reason coverage is so expensive in New Jersey, insurance experts say, is because people purchase more expensive cars and have more financial assets than in other states.
Technorati Tags: new jersey auto insurance
