Realtors Join Push For Jersey Auto Reform
NU Online News Service, June 12, 12:50 a.m. EST?An industry group lobbying for regulatory changes that would attract more carriers to New Jersey's shattered auto insurance marketplace said today it has secured support from a sector of the real estate community.
The Coalition for Auto Insurance Competition in Newark, N.J. announced that the New Jersey Association of Realtors, a non-profit association representing approximately 36,000 realtors in the state, has joined the group.
The Coalition said its aim is to reform New Jersey's auto insurance laws to spur consumer choice and market competition.
Rosanne Citta, New Jersey Association of Realtors' president, said her group recognizes the need for "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."
Ms. Citta said NJAR is concerned "that the continued erosion of insurers in New Jersey will have a detrimental impact not only on the availability of auto insurance, but homeowners insurance as well."
The Coalition said it is calling for regulatory changes to permit companies to employ industry-accepted standard underwriting methods used in nearly every state, as well as adjusting the low ceiling on company profits to permit a reasonable rate of return.
According to the Coalition, the latest figures show that 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 10 years.
The situation worsened last year when State Farm, one of the largest auto insurers in New Jersey, applied to leave the state. Efforts by the administration of Gov. Jim McGreevy to change the company's mind have so far been unsuccessful.
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