The Auto Insurance Industries in New Jersey

New Jersey’s Traffic Congestion Results in Higher Auto Insurance Rates

New Jersey boasts a population density per square mile equal to that of Hong Kong. Most of the problems with auto insurance in New Jersey are road, streets and highway systems inadequate for such population density. The majority of major NJ roadways accommodate travel from northern to southern directions easily. However, roadways from east to west are minimal, causing congestion on main arteries like Route 22, Route 78, Interstate 95 and Route 522. According to many national reports New Jersey has the highest auto insurance rates in the US. Auto insurance for a single vehicle with a single driver is rarely less than $1,000 annually. Thus, New Jersey auto insurance is not cheap by the standards of the remaining 49 states.

Changes in New Jersey Auto Insurance

Auto insurance in New Jersey is mandatory by law. However, the eligibility for auto insurance in New Jersey has very strict standards. Since the year 2000, several changes in auto insurance in NJ have taken place. The state allowed other auto insurers, like Geico and Progressive, to create more competition among the older companies However, in order for these firms to attract business and remain competitive, auto insurance providers included, as part of the eligibility factors, education and credit rating. This has been debated by NJ Motor Vehicle Commission and general public as to the viability of rating potential auto insurees.

New Jersey’s Driving Conditions Around the State

The most heavily populated areas of New Jersey are in northern and central counties nearest to New York and Raritan Bay. Generally, this is a mix of commercial and residential real estate with a glut of vehicles. Most Northern and Central New Jerseyans own at least two to four vehicles per family. With this number of vehicles per household, auto insurance can cost upwards of $3,000 annually for a family with 2 or more vehicles. However, one of the biggest problems with multiple family vehicles is damage to roads. Most New Jersey roads are constantly under repair due to heavy car and truck traffic, particularly in more heavily populated areas. Southern New Jersey from Monmouth to Cape May Counties are far less populated, have fewer major roadways, less traffic and require less road repair.