New Jersey NJ Auto Insurance Rate
Reader’s Question:
I am from New Jersey and I would like to know if anything can be done about NJ having the highest auto insurance rates in the U.S.?
Ben
Camden, NJ
Good that you asked, Ben.
I should tell you first why this is so. As you can observe, NJ is so much urban and is densely packed. Notice that there are more residents that drive cars than in other areas like New York City. Because of this, NJ is more prone to accidents, and high instances of vandalism and theft. This is exactly the reason why New Jersey residents pay the higher auto insurance rates in the entire country.
To add to this, there is also a great number of drivers in New Jersey who are uninsured. The uninsured chunk added strain the auto insurance industry which caused rates to go up. A 35 year old from urban Jersey City would pay $1,118 for Allstate coverage which is 72% more than if he lived in the rural Sussex County. Expensive auto insurance rates result to many uninsured driver which lead to a plan of capping urban rate increase until better car insurance regulations will be present for consumers. Better competition could also help control high auto insurance prices.
However, with or without the sate government’s help, you can always get yourself the lowest possible car insurance rates simply by shopping around. Just look around to find the best deal! You can start getting free quotes online by typing in your zip code on the relevant space found on this page.