A recent survey by ConsumerAffairs found New Jersey to be one of the three most expensive states in the country to obtain motor vehicle insurance, along with Montana and Michigan. Maine, Ohio and Wisconsin are the best bargains.
Experts say the difference in average cost—the average in Maine is $808 per year and Michigan drivers pay an average of $2,738 per year—stems from a wide range of factors, including:
- The density of traffic in a given state
- The number of uninsured drivers in a state
- The number of insurance companies offering policies in the state
In addition, some states, such as California, have become far more aggressive in recent years in regulating insurance companies, helping to keep premiums down.
Authorities in New Jersey attribute the high premiums to the population density, the nation’s largest. With more drivers per mile than any other state, the risk of accident and injury is higher as well. In addition, New Jersey requires a minimum of $250,000 for personal injury protection. Only Michigan has a higher PIP requirement.
Of course, one of the risks when insurance premiums are high is that people will travel on the roadways without insurance. Some estimates suggest that as many as one in ten drivers in New Jersey does not have an auto insurance policy. New Jersey law requires, though, that you carry uninsured motorist coverage when you purchase a policy. Accordingly, if you are injured in an accident involving an uninsured motorist, you will look to your own carrier for coverage.
Contact Our Office
For a free initial consultation, contact attorney Howard D. Popper online or call us at 973-993-8787. We have office locations in Morristown and Newton, but will visit you in your home or the hospital, if necessary.
We take all personal injury claims on a contingency basis. We won’t charge attorney fees unless we recover compensation for your losses.