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The Coalition for Auto Insurance Competition today announced that the AAA Clubs of New Jersey has joined the effort to bring choice and competition to New Jersey's auto insurance market.
"The AAA Clubs of New Jersey recognize the need for a regulatory system that promotes competition, encourages companies to sell auto insurance in New Jersey, and creates a stable market that offers more choices for consumers," said John Friedman, the Coalition's chairman.
The Coalition supports The New Jersey Automobile Insurance Competition and Choice Act, which passed the State Senate. The New Jersey General Assembly Banking and Insurance Committee is expected to consider the bill (S-63/A-2625) in May. The legislation has the backing of Governor James McGreevey and a bipartisan group of legislators in both houses.
The AAA Clubs of New Jersey - AAA North Jersey, New Jersey Automobile Club, AAA Mid-Atlantic and AAA South Jersey - provide automotive, travel, financial, insurance, legislative and educational services to 1.9 million members through 27 offices in the Garden State.
The Coalition is calling for reforms that will attract more auto insurers to New Jersey, spurring competition and increasing consumer choice. These reforms include permitting companies to use industry-accepted standard underwriting methods already used in nearly every state and adjusting the low ceiling on company profits to permit a reasonable rate of return.
"It's only natural to expect that consumers will shop around for the best deal if they have more choices. Competition and choice benefit consumers and when companies compete, consumers win, " said Friedman.
The Coalition for Auto Insurance Competition includes the National Association of Independent Insurers, Insurance Council of New Jersey, American Insurance Association, New Jersey Chamber of Commerce, Independent Insurance Agents of New Jersey, Citizens for a Sound Economy, National Association of Mutual Insurance Companies, New Jersey Association of REALTORS(R), Professional Insurance Agents of New Jersey, New Jersey Food Council, New Jersey Retail Merchants Association, NJ SEED (Society for Environmental, Economic Development) Latino Chamber of Commerce of Mercer County, and the Commerce and Industry Association of New Jersey.