Petition Drive Starts Over Jersey Auto Insurance

NU Online News Service, Dec. 17, 11:24 a.m. EST?A business group pushing legislation to revise New Jersey's auto insurance system said they are mounting a petition drive involving a huge direct mail effort aided by the Internet.

The Coalition For Auto Insurance Competition said more than 90,000 petitions are on their way to homes, and the group is putting the petition up on the coalition's Web site at www.njcaic.org.

According to the coalition, the drive will target legislators for a "call for auto insurance reform from thousands of New Jerseyans concerned and frustrated over the lack of auto insurance choices."

The petition urges legislators to pass The New Jersey Automobile Insurance Competition and Choice Act developed by the coalition. The group says the legislation would attract more auto insurers by permitting companies to use industry-accepted standard underwriting methods used in most other states.

"Our surveys show that consumers overwhelmingly support legislation that will result in more companies doing business in New Jersey and giving consumers more choices. This bill would do just that," said the coalition's chairman, John Friedman.

The coalition said its latest move would build on education efforts it has previously undertaken and will give residents "a means to voice their frustration over a lack of competition in the auto insurance marketplace."

"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," said Mr. Friedman.

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. Auto insurance premium prices are among the highest in the nation.

"Having to operate under the state's restrictive and difficult regulatory regime where insurers are told what products to sell, to whom they must sell to and how much to change, companies will lack an incentive to remain and invest in New Jersey," said Mr. Friedman.

"We need a regulatory system that promotes competition, encourages companies to sell auto insurance in New Jersey, and creates a stable market that offers more choices for consumers," he added.

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Petition Drive Starts Over Jersey Auto Insurance

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