GEICO, Allstate search fee hikes in New Jersey

Drivers in New Jersey are set to see increased premiums as a number of auto insurers request state regulators for fee will increase.

Two of the businesses seeking to elevate their charges are GEICO and Allstate, which have each filed for double-digit hikes.

GEICO has a pending request for a 26% fee elevate, whereas Allstate has requested to extend charges by 29%.

The pending hikes come as a brand new state legislation requires increased minimal legal responsibility protection on automobile insurance coverage insurance policies bought or renewed after January 1 of this 12 months.

Under the brand new legislation, which was signed by Governor Phil Murphy in 2022, the minimal legal responsibility protection has now been set at $25,000 from $15,000. Furthermore, insurance policies should embrace $50,000 in protection for accidents involving a number of accidents or fatalities, up from the earlier requirement of $30,000.

This legislation can even elevate legal responsibility minimums once more in three years. Starting from 2026, the minimal protection will enhance to $35,000, with the protection for accidents involving a number of accidents or fatalities raised to $70,000.

“We can’t even estimate what that impact is going to be because that number is going to be unique to New Jersey across the country,” O’Brien informed NJ Spotlight News. “We have no experience off of which we can estimate what financial impact that will have on New Jersey drivers.”

Aside from the brand new legislation, trade specialists stated the speed hikes are additionally being pushed by inflation and elevated insurance coverage prices.

As famous by Michael Barry, chief communications officer of the Insurance Information Institute (Triple-I), inflation has made it exhausting for insurers to maintain up with the frequency and severity of accidents, contemplating how car alternative components and auto physique labor repairs have all elevated in price.

The prevalence of auto thefts is one other issue, with National Insurance Crime Bureau (NICB) revealing that greater than 1,000,000 automobiles had been stolen in 2022.

“If you have got a theft, now unexpectedly we’re speaking a couple of complete loss,” Barry informed NJ Spotlight News. “This is a $25,000 to a $30,000 claim to the auto insurer.”

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