Car insurance premiums will rise by double digits in New Jersey in 2024: Here’s how much

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It’s no secret that car insurance premiums have risen more than Spider-Man climbing a skyscraper, and if you’re in New Jersey, that trend continues. According to recent data from the New Jersey Department of Banking and Insurance, providers are hitting the rate hike button more often — and at higher percentages. Here you can find out what happens to your premiums and why your wallet could come under pressure.

The numbers don’t lie (but they hurt)

Some of the biggest names in car insurance have requested significant rate increases. For example, Allstate New Jersey requested a whopping 29% increase starting in December 2023, but regulators hit the brakes and only approved a 20% increase. Still intense, but at least a little less painful.

Not to be outdone, GEICO plans to adjust in March 2024, asking for a 23.4% increase. The figure has been reduced to 19.1%, but this will still feel like a tank of premium petrol.

Even Liberty Mutual and Farmers participated with approved double-digit increases (12.5% ​​and 11.0%, respectively). Meanwhile, State Farm Indemnity appears to be keeping its cool, with an 11.5% rate hike approved unchanged.

So what’s going on?

Why are these fares increasing faster than current Taylor Swift ticket prices? Insurance companies point to inflation, rising repair costs and an increase in accident claims. Newer vehicles are also full of technology that is expensive to repair – those fancy driver assistance features don’t come cheap!

Additionally, weather-related claims, from floods to hailstorms, have hurt providers’ profits and led to higher rates overall.

How it affects you

If you’re an Allstate customer in New Jersey, you can expect a premium increase of around 20%. GEICO fans? An increase of almost 19% is expected next spring. For everyone else, even if your provider’s rate changes are less dramatic, they still add up.

What can you do?

Before you panic and ride your bike everywhere, here are some mitigation measures:

1. Shop around – Compare rates from different insurers. Loyalty doesn’t always pay off, and switching could save you.
2. Increase your deductible – If you can afford it, a higher deductible can lower your monthly premium.
3. Bundle it up – Combining car and home insurance with the same provider often brings discounts.
4. Ask about discounts – Whether it’s good driving habits or a multi-car policy, you may miss out on savings.

While these increases are frustrating, being proactive with your insurance coverage can help soften the blow. And hey, if all else fails, consider taking up skateboarding. No bonuses – just invest in some knee pads!