Auto Insurance
Insurance Reform in a Deadlock
Despite widespread agreement that the auto insurance system is in dire need of reform in many states, most revamping efforts remain stalled or ineffective, forcing drivers to pay ever-higher rates and insurers to grapple with escalating legal, medical and car-repair costs.
The announcement last week by the Allstate Insurance Company that it planned to stop doing business in New Jersey, where it is the largest auto insurer, was the latest example of the confusion and frustration building around the issue in some populous states.
Allstate said New Jersey officials were unreasonably denying it rate increases despite years of losses and rising costs. New Jersey regulators and consumer advocates responded that Allstate’s operations were simply inefficient and that the company should actually cut its rates. A National Problem
Here in California, regulators remain mired in a legal battle with the industry over whether the state can force insurers to roll back rates, as required by a ballot proposition passed nearly three years ago. Most drivers in California have long since given up hope of seeing the promised rebates anytime soon, and for many, rates have continued to rise.
Massachusetts, having tried both deregulation and extremely tight regulation – only to find that neither system pleased consumers or the industry – is now considering its third regulatory overhaul in 15 years.
More : query.nytimes.com
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