According to a recent study by Consumer Affairs, New Jersey ranks among the most costly states in the country for automobile insurance, along with Michigan and Montana. Wisconsin, Ohio, and Maine are the best bargains for drivers.
Researchers say a number of factors contribute to the cost of motor vehicle insurance. Some, such as age and driving record, are unique to the individual. But others apply to drivers as a whole. The issues that account for the dramatic differences from state to state include:
- The number of insurance companies competing in a state
- The density of traffic in the state
- The number of uninsured drivers in the state
The study found that drivers in Maine, the cheapest state, pay nearly $2,000 less on average per year than drivers in Michigan, the most expensive state. The tab in Maine is just $808 annually, whereas Michigan motorists pay an average of $2,738 per year.
Another factor cited in keeping premiums low in certain states involves efforts by state regulators to minimize abuses by insurers. California, for example, was cited as a state where premiums have remained low due to aggressive regulatory actions by the state.
New Jersey officials say there are two principal reasons why the state is near the top in auto insurance costs. First, New Jersey has the highest traffic density rate in the country. In addition, New Jersey requires that auto insurance policyholders have $250,000 in personal injury protection, an amount exceeded only by Michigan.
Contact the New Jersey Personal Injury Lawyers at the Law Offices of Harold J. Gerr
At the Law Offices of Harold J. Gerr, we have fought for the rights of personal injury victims in central New Jersey for more than four decades. We carefully choose the cases we handle, so that we can provide the highest levels of service and personal attention to each client. We are also happy to take over your case, if your first lawyer does not seem to have your best interests in mind.
To set us a free initial consultation, send us an e-mail or call our office at 732-537-8570.
