New Jersey Auto Insurance Law Change: Job and Education Can Affect Rates
A change in state regulations may be resulting in higher auto insurance rates for people in New Jersey based on their education or occupation, states Larry Higgs of the Ashbury Park Press. Since January 1, New Jersey auto insurance companies are formally allowed to use factors other than an individual’s driving record in determining premiums.
According to a study of quotes, having a high school education as opposed to a college degree resulted in quotes up to 61% more expensive. Opponents of the new regulations contend that they will lead to an unregulated free-for-all: insurers will be able to reject individuals without explanation, and those individuals might choose to illegally drive without insurance. Larry says that some groups also consider this rule discriminatory against blue-collar workers and those with lower incomes, whom are least likely to afford higher auto insurance premiums.
Bills that would eliminate the usage of factors like a person’s job, education, and credit rating in calculating quotes for a policy have been introduced in both the state Senate and Assembly, but the former has remained stuck in committee for several years.
Tags: Auto Insurance Premiums, Auto Insurance Rates, auto insurance reform, New Jersey Auto Insurance, state auto insurance requirements
