Nearly 90 Percent of New Jersey Auto Insurers Raise Rates in 2024
Drivers should be concerned that over 90% of New Jersey vehicle insurance providers have raised their premiums this year. State authorities indicate that 69 of 77 insurers have received higher rates, indicating market pressure to absorb rising expenses.
An insurer targeting wealthy consumers requested a nearly 39 percent rate hike and was allowed for 30 percent. A corporation that requested a 40% rise received 28.3%. A big national insurer requested and received a 26.2% increase.
Insurers suggest hikes because to rising repair costs, labor costs, and major accident rates. Insurers face challenges from replacement part costs, inflation, supply chain interruptions, and increasing repair technician wages.
All New Jersey insurance businesses must have Division of Banking and Insurance approval for vehicle rates. The division checks proposals for reasonableness and nondiscrimination. A spokesman said the division rejected nearly $1.4 billion in car and homes rate hikes between January 2023 and August 2025.
Some insurers were rejected raises, but none were denied the whole amount. Vehicle type, driving history, usage trends, and insurance underwriting model affect premium increases. Low-mileage drivers with clean records may be charged more.
Nine companies await clearance of their requests. One insurer suggested a 28.4% hike pending regulatory assessment.
Shopping around is one of the best ways to avoid significant price hikes. Insurers may reward drivers who take state-approved defensive driving courses and bundle numerous insurance. Military affiliation, good student status, and limited annual mileage are other discounts. While raising your deductible reduces premiums, it increases out-of-pocket claim risk. Drivers may consider decreasing coverage, such as removing crash protection on older vehicles, although that increases personal risk.
This wave of rate hikes adds to inflation and increased living costs for New Jersey motorists already struggling financially. Evaluate coverage alternatives, compare insurers, and use discounts to mitigate the impact.
Sources: NJ press sources and official announcements from the Division of Banking and Insurance.
