An automobile insurance reform bill being heard Monday by the New Jersey Assembly’s Banking and Insurance Committee is a good first step toward improving the underwriting environment in the state, reversing years of neglect and missteps, according to the Alliance of American Insurers (AAI).
“This bill (S 63) is necessary in order to meet consumers’ needs and insurers’ business concerns,” said Richard Stokes, government affairs representative for the Alliance’s Northeast Region in testimony today before the committee. The Alliance, whose members write approximately one of every three vehicles on New Jersey’s roads, also sent letters to each member of the committee urging passage of S 63.
Auto insurers are leaving the state or cutting back on the business they write there due to the current difficult operating environment. “As a result, it is becoming increasingly difficult and time consuming for drivers to find auto insurance in New Jersey,” continued Stokes. “Each month more than 4,000 New Jersey auto owners are required to seek coverage from another carrier. Unless the committee acts now, it will be exceedingly difficult for the market to recover and attract insurers to invest and grow with New Jersey.
“S 63 makes a gigantic stride toward bringing the stability, predictability and fairness needed to promote availability of auto insurance for consumers in the New Jersey auto insurance market,” added Stokes.
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