Insurance

Auto insurance premiums set to rise for 1.1 million New Jersey drivers

A new bill that increases auto insurance costs for New Jersey drivers has been signed into law by Governor Phil Murphy, affecting nearly 1.1 million drivers, the state Insurance Board said.

State Senators and Personal Injury Lawyers, Senate Speaker Nicholas Scutari, D-Union, and Senator Jon Bramnick, R-Union, are the ones who lobbied for the bill.

Proponents say accident victims have been unable to obtain consistent medical coverage due to the low coverage option. Those opposed, however, say it is nothing more than another blow to the wallets of Garden State residents.

Starting next year, drivers with the lowest current coverage ($15,000) can expect to pay about $125 more each year through 2026, said Christine O’Brien, president of the ‘Insurance Council of New Jersey. NJAdvance Media.

The minimum amount of liability insurance in New Jersey will increase from $15,000 to $25,000 under the new bill, and in 2026 it will increase again to $35,000. When more than one person is injured in an accident, the minimum coverage will increase to $50,000 and in 2026 it will be $70,000, the minimum coverage.

The bill was part of a larger package that also requires homeowners and business owners carry liability insurance and require some insurers to disclose policy limits at the request of attorneys in certain circumstances.

In an editorial by USA todayO’Brien believes these new laws will only make things worse for already struggling New Jersey residents.

“All told, the impact of these five bills on the wallets of New Jersey drivers could cause some to forego insurance altogether,” she says, “especially low-income drivers who must already spend a proportion higher of their salary to obtain coverage.

“Now more than ever, Garden State residents need smart policies that improve their standard of living and help keep them, their families and loved ones safe. These bills do the exact opposite. “

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