Smart Auto Insurance Blog

About 300,000 NJ residents who have New Jersey auto insurance coverage through Allstate will soon see their rates increase by 8.9% on average.  Allstate had requested a 15.4% average increase but only a 8.9% increase was approved by the state.  The 8.9% increase was still the highest increase approved by the state in six years.

Overall New Jersey auto insurance rates increased 3.7% across from March 2009 to April 2009.  In addition, insurance.com’s monthly RateWatch report singled out New Jersey as having a large disparity in prices between auto insurance carriers for similar coverage levels, and that shopping for auto insurance in New Jersey could be particularly profitable.

Following up on Michigan Governor Jennifer Granholm’s request that auto insurers in her state freeze their rates for 12 months, the Insurance Journal reports that 5 companies have complied. So far, the Michigan auto insurance providers that have frozen their rates are:

• Electric Insurance
• American International South Insurance
• Merchants Mutual Insurance
• Wolverine Mutual Insurance
• IDS Property Casualty Insurance

More insurers may soon follow, allowing Michigan drivers to pay a lower auto insurance rate.