March 22 2005
Some people will argue that, "the government that governs least governs best."
If this is true, this has not always been the case in NJ. After excessive state regulation of the insurance industry due to insurance reforms, more than 40 insurance carriers of varying sizes stopped insuring drivers and closed their operations while other major insurance carriers threatened to leave over the past decade. This reform did return $3.5 million to about 2 million drivers through dividends and insurance rate reductions, however.
But in a drastic change of events, Progressive Insurance, which is the nation's third largest auto insurance company, recently announced that they will enter the New Jersey market sometime this year. The same is true with Esurance Insurance Company, an online insurer that will be offering private passenger auto policies very soon.
Two other significant signs that better times are in store for auto insurance in New Jersey occurred when Geico Insurance returned to NJ last year after a 30 year absence, as well as Safeco's return to the Garden State.
These announcements could prove to be an optimal situation for New Jersey drivers. They will benefit from the added options that these insurance companies will offer, while the reforms could continue to keep the rates down