Sexy真人

New Jersey Policyholders are in the Driver's Seat:
Auto Reforms Taking Hold

TRENTON - Drivers are benefiting from the increased competition sparked by the auto insurance reform package that Governor James E. McGreevey signed one year ago, according to an annual report submitted by the Department of Banking and Insurance. The report summarizes the progress of New Jersey's consumer-directed, competitive auto insurance market in just one year, and predicts more good news to come.

"The marketplace that is emerging is one that provides protections and benefits for New Jersey drivers," Governor McGreevey said. "Over the past year, we've cracked down on fraud, reduced the number of uninsured drivers on the roads, and developed creative ways to put downward pressure on rates for drivers."

Since the signing of the reform, insurance carriers are actively competing for New Jersey drivers. To date, policyholders have received over $133 million in rate reductions and special dividends. Companies have also increased their marketing efforts to attract more drivers. New Jersey Manufacturers (Sexy真人M) is predicting the release of an additional $38.5 million to policyholders later this year.

"Competition between companies is healthy and is yielding results for New Jersey's drivers," said Banking and Insurance Commissioner Holly C. Bakke. "We are building a marketplace that rewards efficiency and encourages new investments and ultimately provides consumers with choices of coverage and cost."

Over the past year, the Department has met with new companies and retained current carriers in New Jersey. Attracted by these reforms, Mercury General entered the market with an objective to become a major player in New Jersey. Mercury is currently insuring more than 30,000 drivers, bringing more capital into the state and employing more than 250 agents.

"The competitive marketplace we are creating is also feeding a growing economy, generating more employment opportunities for agents, and allowing companies to expand in order to cover more drivers," Commissioner Holly C. Bakke said. "More than 1,200 new agents have been appointed since the insurance reform was signed. This means more agents are on the streets serving more drivers."

New Jersey has also taken the lead in building a consumer-directed, competitive marketplace by giving drivers the tools they need to make informed choices in regards to their auto insurance. Earlier this year, consumer protection regulations were adopted to provide consumers with three price quotes when shopping for insurance, a Consumer Bill of Rights and a more user-friendly Buyer's Guide to explain coverage choices. As an integral part of the reform initiative, these protections help put consumers in the driver's seat.

New Jersey also established itself as a leader in combating fraud by incorporating the nation's toughest penalties to ensure that additional costs are not imposed on honest drivers. Last year, there were 379 convictions, 109 of whom were sentenced to a total of 194 years in prison. New Jersey is on pace to exceed this amount by the end of this year.

Among the highlights from the report:

• Mercury General Insurance Group became the first new national auto insurer in seven years to write policies for New Jersey drivers. Mercury is covering more than 30,000 New Jersey drivers, has added $15 million in capital to New Jersey's market and employs more than 250 agents.
• Over $133 million has been returned to more than one million policyholders. United Services Automobile Association (USAA) implemented a $7.7 million rate reduction, State Farm Indemnity policyholders received $80.9 million in rate reductions and New Jersey Manufacturers Insurance Company (Sexy真人M) returned $45.2 million in rate reductions and special dividends.
• Sexy真人M is predicting the release of an additional $38.5 million to policyholders.
• In 2003, New Jersey's Office of Insurance Fraud Prosecutor obtained convictions against 379 defendants, 109 of whom were sentenced to a total of 194 years in prison. That represents a 25 percent increase in convictions over 2002, a year in which New Jersey placed first in the nation in fighting insurance fraud.
• The Governor's "Last Chance" Program and new Dollar-A-Day policy has resulted in more than 40,000 previously uninsured drivers becoming insured, and contributing more than $55 million in premium to the New Jersey auto insurance system.
• Nearly 30,000 consumers have used New Jersey's innovative web-based auto insurance planner to decide what coverage they need and what they want to pay for that coverage.
• The new consumer friendly Buyer's Guide is being distributed with every auto insurance policy, and the Three Scenarios Program is helping consumers understand their policy choices and what those choices mean.

The Auto Insurance Report