Allstate Raises Its Rates For Some New Jersey Drivers

WBGO News — Wednesday, May 5, 2009

To be in the good hands of one insurance company, some drivers will have to dig deeper in their pockets to protect their vehicles.

The nine percent rate hike is the largest increase since auto insurance reforms went effect six years ago. Roughly 300,000 Allstate New Jersey Insurance Company policy holders will pay an average of $100 to $150 more a year. New Jersey Citizen Action's Eve Weissman says they want more oversight and public input before a rate increase goes into effect.

"More and more people are finding themselves unemployed. Of course, it's absolutely the wrong time for in that sense certainly for consumers to be experiencing those types of rate increases."

However, state Department of Banking and Insurance Commission spokesman Ed Rogan says competition won't be driven from the state.

"Consumers still have strong choices in New Jersey and that's really crucial to note."

The reason for the rate increase is to cover the rising cost of car repairs, lawsuits and medical care.

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