The General Assembly Banking and Insurance Committee in New Jersey approved legislation Monday that will reportedly correct years of politically influenced auto insurance regulations that have eroded the availability of coverage for drivers.
Voting unanimously, the Committee approved the New Jersey Automobile Insurance Competition and Choice Act, which aims to attract more auto insurers to do business in New Jersey and provide consumers greater and easier access to auto insurance coverage.
“Years of excessive regulations have turned New Jersey into a horror story for drivers seeking insurance,” said John Friedman, chairman of the Coalition for Auto Insurance Competition. “Thanks to bipartisan leadership, New Jersey drivers are closer to reaping the benefits of a truly competitive auto insurance marketplace.”
Politicizing and over regulating auto insurance is reportedly the root cause of the state’s exodus of auto insurers, leaving consumers too few companies from which to purchase auto insurance. Five of the six largest auto insurers in the nation do not sell auto coverage in the state and more than 20 auto insurers have left New Jersey in the past decade.
“Considering the New Jersey’s nationwide reputation to over regulate auto insurance, today’s Committee vote has tremendous significance,” continued Friedman. “Today’s bi-partisan vote is confirmation that lawmakers are serious about true reform. For drivers, today means there is hope that our auto insurance crisis may be near an end.
The Coalition members include the National Association of Independent Insurers, Insurance Council of New Jersey, American Insurance Association, New Jersey Chamber of Commerce, Independent Insurance Agents of New Jersey, Citizens for a Sound Economy, National Association of Mutual Insurance Companies, New Jersey Association of REALTORS®, Professional Insurance Agents of New Jersey, New Jersey Food Council, New Jersey Retail Merchants Association, NJ SEED (Society for Environmental, Economic Development), Latino Chamber of Commerce of Mercer County, and the Commerce and Industry Association of New Jersey.