The cost of auto insurance has fallen in New Jersey, despite more risk, report says
Most states have seen auto insurance rates increase for drivers over the past year, but New Jersey was not among them, according to insurance comparison site The Zebra.
Although drivers are getting back on the road in 2021 with fewer COVID-19 fears, leaving the door open for more auto accidents and actually leading to more fatalities on New Jersey roads, the Garden State has been one of 13 states to record a decline in self-insurance rates from 2020 to 2021, according to the report.
New Jersey records an average annual auto insurance rate of $1,459, which is lower than the national average of $1,529. From 2020 to 2021, rates increased by 3% in the United States, according to the report.
“I’m always happy to see New Jersey turn the tide on auto insurance and lower prices,” Christine O’Brien, president of the Insurance Council of New Jersey, said in response to the report.
O’Brien noted that auto insurance reforms New Jersey implemented in 2003 continue to pay off, in terms of better rates for drivers and fewer uninsured motorists.
“Overall, New Jersey is doing pretty well for a heavily populated state, with countless cars, old roads and infrastructure, on top of everything else,” O’Brien said.
The report’s numbers are based on the “average insured” driver, a 30-year-old single male with a 2017 Honda Accord EX.
“Most people think the North East is the most expensive place to live, and for the most part it is…but we can see when there’s a good healthy market in place and drivers have choices and they have affordable choices, northeastern states like New Jersey are competing and doing very well,” she said.
The Zebra report found that rates were also declining year over year in New York, Pennsylvania, Maryland, Delaware and Maine, among other states.
“As soon as the number of claims increases, insurance rates also increase. However, drivers are not powerless – to reduce rates, adopt safe driving behaviors and take every precaution to protect your vehicles from damage. by extreme weather conditions,” said Nicole Beck, communications manager at The Zebra.
Contact reporter Dino Flammia at [email protected]