As the costs associated with uninsured vehicles and motorist safety rise, states across the country are looking at new legislation to attack these problems. The State of New Jersey is actually considering seven new laws that could impact car insurance for drivers in Jersey. Here’s a breakdown of the proposed laws and how they may affect New Jersey car insurance.
Bill A327 & S243 restricts car insurance companies from accessing some types of data to use when determining how to insure and how much the policy will cost. One of the big points regarding this proposal is disallowing car insurance providers from using claims that happened while volunteering or working for a non-profit to determine eligibility or pricing.
Bill A871 will give drivers looking for a premium break the opportunity to forfeit most of their legal rights to sue after an accident to save on their policy. The purpose is to reduce the costs associated with accident lawsuits in the state. For accidents that involve significant injuries, such as death and dismemberment or serious long term disability, drivers would retain their right to pursue legal compensation.
Bill A902 wants to raise the monetary level for at-fault accidents so that minor fender benders do not negatively affect a driver’s car insurance premiums.
Bill 944 works against abuse towards the New Jersey Department of Banking and Insurance. An example would be reverse rate erosion where residents leave Jersey to purchase auto insurance in a neighboring state and then return home with more affordable policies.
A1113 would require car insurance companies to open up offices and staff at least 3 employees in urban New Jersey areas. Urban areas tend to have higher risk customers with higher premiums which is not an appealing choice for most car insurance companies.
A1392 works in the favor of auto insurance companies by allowing them to use monitoring devices to determine whether or not to insure a New Jersey driver.
A1426 & S536 removes level of education and occupation from the criteria used to determine whether or not to insure a driver and what their policy will cost.
A1428 is related to A1426 in that it would require car insurance companies to notify consumers if they are rejected or their premiums are raised because of their education or occupation.
A1601 adds an exception to the limited lawsuit option by allowing drivers to sue if they are struck by a driver proven to have been under the influence of drugs or alcohol.
A1844 would allow the state to suspend a driver’s license the first time they are caught driving without insurance.
These are just some of the New Jersey car insurance proposals under consideration this year that may affect both drivers and car insurance companies.