No More “Take-All-Comers” Rule: Higher New Jersey Auto Insurance Rates
The cost of New Jersey auto insurance could increase sharply for some drivers, claims Rudy Larini in the Star-Ledger. A new rule that came into effect on January 1st allows auto insurance companies to deny coverage to virtually anyone they want for almost any reason (barring obvious, illegal discrimination of course). Before, the state’s “take-all-comers” rule required all insurers to cover all drivers in new Jersey, except those who either had a policy canceled for non-payment of the premium or garnered more than 7 points on their driver’s license. Now providers can take into account factors such as not having had a license for the past 5 years.
Drivers in urban areas will suffer the most impact. The “take-all-comers” rule was first enacted when they complained of not being able to find auto insurance. According to Rudy, the rule was intended to be temporary, and this is just a final step in auto insurance reforms that have been going on for several years.
Individuals probably won’t have a problem finding an insurer that will accept them, since New Jersey requires all drivers to have insurance. Unfortunately, that insurance could be far more expensive than it was previously. If someone is rejected by two or more insurers, they will automatically be directed to the state’s high-risk pool. If that pool increases to more than 10% of NJ drivers, the rule will be reinstated to prevent discriminatory auto insurance rates.
(Photo credit: Tony the Misfit under CC 2.0)
Tags: auto insurance access, Auto Insurance Rates, high-risk pools, New Jersey Auto Insurance, take-all-comers rule, urban auto insurance
