GREENWALD: NY TIMES ARTICLE ILLUSTRATES SUCCESS OF 2003 AUTO INSURANCE ACCESS LAW
Three-year-old 'New Jersey Automobile Insurance Competition and Choice Act'
Has Stabilized Market, Driven Down Premiums, Stopped Insurance Company Flight
(TRENTON) -- Referring to an article in today's edition of The New York Times, Assemblyman Louis D. Greenwald said the state's three-year-old automobile insurance reform law has proven to be a success for the vast majority of New Jersey drivers.

The article titled "Where Drivers are Now Courted" outlines the myriad of improvements made to the state's auto insurance market by the 2003 law, which removed onerous regulations and made it easier for companies to sell policies in New Jersey.

More than 75 percent of New Jersey drivers have seen a reduction in auto insurance rates and further drops are anticipated, according to the article. It states further that rates are falling the sharpest in New Jersey due most importantly to regulation changes.

"In three short years, auto insurance rates have released their stranglehold on New Jersey drivers and gone down considerably for the overwhelming majority of policy holders," said Greenwald (D-Camden), author of the law. "The astronomical amount of money saved by drivers, and the abundance of companies that have entered New Jersey or decided to remain in the state are proof positive that fostering competition was in the best interest of consumers."

The New York Times article cites state regulators as saying that more than $500 million has been saved by New Jersey drivers since the law was enacted. Since 2003, almost 20 new companies have begun writing policies in the state, and a third of the state's drivers have switched insurance carriers, according to the newspaper.

Under state law, all drivers are required to carry automobile insurance. However, overregulation of the industry had caused a number of insurers to stop selling auto policies or leave the state entirely, thus forcing drivers to find coverage from a shrinking pool of insurance underwriters and pay high premiums.

Greenwald's measure -- the New Jersey Automobile Insurance Competition and Choice Act (S-63/A-2625) -- changed the landscape of the auto insurance industry, thus reversing the trends of fewer underwriters and higher costs.

"Now that the auto insurance reform has proven successful, it is time to take this time-tested model and apply it to other policy areas," said Greenwald.

CONTACT:
Assemblyman Greenwald
Beth Auerswald
(856) 435-1247