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(Transportation-News.com, May 08, 2013 ) Chicago, Illinois -- New Jersey car insurance rates are going to rise again, as auto insurers may be adding double digits to certain policies. The news in certainly unwelcome to many motorists across the state that is already well established as the highest-paying in the nation. This time, many motorists may be willing to cut the insurance companies a bit of slack, however, as the millions of dollars are being paid out to policyholders whose sedans and SUVs were swept away with the superstorm Sandy disaster.
Still, insurers and the state regulators are stating that the storm is not the primary reason for the raising of rates. The hikes in payment are related to Tropical Storm Irene and the Halloween nor'easter that the the region two years prior. Other factors include higher medical costs, expenses for reinsurance, and a low investment forecast. Experts note that these are the primary contributors, and are even secondary contributors, with superstorm Sandy having living-to-nothing to do with the general hikes.
"Irene is starting to have somewhat of an impact on comprehensive coverage," said Marshall McKnight, spokesman for the New Jersey Department of Banking and Insurance, which provided The Record with data on recently approved insurer rate increases.
Allstate, NJ Manufacturers Insurance Co, and State Farm are among those who signed approval for the hikes.
Allstate, who sits as the second-largest in the state, with $958.1 million, is looking for a 6.9% increase. However, the state regulator permitted only a 4.8% hike when all was said and done. The increase already follows a 6.8% and 3% hike in recent years.
The New Jersey Manufacturers Company, which is just behind Allstate at the number three insurer, has $859 million in annual written premiums. The company will now add to rates and renewal policies a 4.9% hike at the start of the summer.
The average cost is now $1,300 in the state, which will rise to $1,364 per year. NJM has reported a $87 million in losses due to superstorm Sandy, and it has been reflected in future price changes. That is likely the worst news for policyholders, that the numbers from Sandy are not even included yet in the overall tally.
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Source: EmailWire.Com 
Source: EmailWire.com
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