11/09/2023
Many auto insurers in NJ are sending out letters to policyholders to inform them that they have filed for 20-30% rate increases with the NJ Dept of Banking & Insurance. These companies include Geico (26%), Liberty Mutual (24-29%), Allstate (29%), Travelers (16.6%), Safeco, Plymouth Rock (21%) and others.
In addition, Allstate is not writing any new auto policies in NJ as of November 1, 2023, for the foreseeable future.
What does this mean? The state requires auto insurers to send this letter out to policyholders if the requested rate hike is over a certain %, but this doesn’t mean that the rate increase will be approved. Rates are going up, but not the 20-30% the letter states. In reality they will probably be approved for somewhere between 5-10%.
Use this as a moment to pull your policy out and shop it around. I have 10+ auto insurance companies in NJ, and am licensed in NY and PA as well. Whether it’s me, or your current agent, don’t just accept the increase. Contact your agent or company for other options if you receive a renewal with a significant increase.
As always I am here to assist any way that I can. If I can help you shop around, or discuss anything else, there is no charge and never will be.
