Finance News: The New Year has arrived and 1.2 million drivers from New Jersey will be started paying more for their auto insurance. But it's important to know why auto insurance is getting so expensive in New Jersey and will discuss about the bill here in this article post.
Gov. Phil Murphy has signed into a law that increased the minimum amount of liability insurance drivers need to have in the state.
This controversial law can affect drivers to pay around $125 more a year per car for auto insurance, according to an industry official this law has come into effect from the first day of the new year 2023.
The new law raised the minimum amount of liability coverage from $15,000 to $25,000. Baked into law is another $35,000 increase in minimum liability coverage in 2026, So drivers can expect to pay even more over three years.
The industry expert told that at the time the bill was in the process of debate, it would affect 1.1 million drivers. But the state banking and insurance departments, which have supervision over insurance companies, said there are an estimated 1.1 million to 1.2 million vehicles with current minimum coverage.
These stats of private passenger vehicles that have been insured by auto insurance in New Jersey are 5,970,00 and these data are according to the DOBI.
Proponents of the law argued that victims of accidents are not always able to cover their medical bills in full due to fewer coverage options.