Auto Insurance
New Jersey Legislators Vote To Overhaul Auto Insurance
Prodded by voter anger over paying the nation’s highest automobile insurance rates, the New Jersey Legislature gave final approval today to a bill that would guarantee a 15 percent reduction in rates for most drivers.
The measure ends months of legislative wrangling over how to lower premiums and appease voters whose frustration with the state’s automobile insurance system nearly cost Gov. Christine Todd Whitman election to a second term last fall. Mrs. Whitman is expected to sign the bill into law on Tuesday.
The bill seeks to reduce costs by limiting frivolous lawsuits and reducing fraudulent claims. It was approved with bipartisan support in both houses. The General Assembly voted 57 to 20 for the bill. The Senate, which approved the measure last month, voted again today, 29 to 5, on a final version that included technical changes.
Although lawmakers described the bill as a sweeping overhaul of the auto insurance system, insurers, trial lawyers and customer advocates argued that the changes would not provide long-term savings for drivers.
Since Governor Whitman and legislators were committed to maintaining the no-fault system, most of the changes involved tinkering with the existing laws. The no-fault system provides medical benefits and lost wages to anyone injured in a car accident.
The measure requires that insurers roll back rates for the vast majority of drivers by 15 percent beginning early next year. Lawmakers estimated that the savings from the legislation would average about $165 a year, lowering the average annual bill to $934 from $1,099.
More : query.nytimes.com
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