The arrival of the first new auto insurer in New Jersey in the past seven years is a positive event for the state’s consumers, according to the Alliance of American Insurers.
“The decision by California-based Mercury General to initiate business in New Jersey is a sign that the recent legislative reforms that the Alliance worked so hard to achieve are in fact working,” said Richard Stokes, the Trenton-based assistant regional manager for the Alliance. “Gov. James McGreevey (D) and Banking and Insurance Commissioner Holly Bakke can rightfully be proud of their accomplishments in getting this legislation approved, and now those efforts have begun to bear fruit. The best thing for the beleaguered insurance market in this state is competition. With the new reforms, we think more companies will follow Mercury’s lead and take a chance on New Jersey.
“We are especially pleased to see that the state will allow the use of credit-based insurance scores as one of the tools in underwriting auto policies. These scores have been proven to be a strong and accurate predictor of risk and allow companies to give policyholders with good credit a better rate.”