Community Corner

Report: Auto Insurance Rate Hikes on Tap

Insurance companies blame 2011's Tropical Storm Irene, Halloween nor'easter — not Sandy — for highest in nation auto rate increase.

New Jersey motorists, who currently pay among the highest rates for auto insurance now, are going to have to dig a bit deeper into their wallets to pay for increases in auto insurance, according to published report Sunday.

Insurers and state regulators are saying Hurricane Sandy, which devastated portions of the state including the Jersey Shore, is not the reason for state approving rate increases for 26 insurers thus far in 2013, according to a NorthJersey.com report.

Instead, officials blame the rate increases on losses related to Tropical Storm Irene and the Halloween nor’easter from two years ago, medical costs that continue to rise, reinsurance expenses and dim forecasts of investment income, the report said.

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Allstate, New Jersey Manufacturers Insurance Co. and State Farm — three of the top four insurers in the state — are among those whose rate hikes were approved, the report said.

Top 10 most expensive U.S. auto insurance jurisdictions

Find out what's happening in South Brunswickwith free, real-time updates from Patch.

State Avg. Bill New Jersey $1,157.30 District of Columbia $1,133.87 Louisiana $1,121.46 New York $1,078.88 Florida $1,036.76 Delaware $1,030.98 Rhode Island   $984.95 Connecticut   $965.22 Maryland   $947.70 Michigan   $934.60

Sources: Insurance Information Institute and National Association of Insurance Commissioners (NorthJersey.com)


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