New Jersey Insurance Rate Increases

It is likely that you have received notice from your insurance company that they intend to file a rate increase with the State of New Jersey.

Why are you receiving this notice?

In New Jersey, insurance companies are required to get approval before implementing significant rate increases. A part of the requirement to file a request for a rate increase includes a mandatory notification of their policyholders.

What happens next?

The State reviews the rate request and may refuse it, allow some portion of the increase, or approve the increase as requested. It is unlikely that any company will get the full rate increase they request. This process is very slow – it can take more than a year for the State to make a ruling on the request.

When does this affect you?

Your insurance company will not be able to issue policies with new rates until the State approves them. You may not see this for one or two years. Any new rates will only be applied to your policy on renewal following the State’s approval.

What are we doing for you?

We review your coverage and price each year before your policy renews. We see our job as making sure you are getting the best program we can give you, which means the coverage you need for the best possible premium.

Industry Cycles

The industry is in an unprecedented cycle in personal insurance. A confluence of events is causing tremendous upward pressure on personal insurance rates. In a sense, we have seen a perfect storm of adverse events that includes everything from runaway lawsuit judgements, significant increases in catastrophic weather events, and a high rate of inflation in building costs for both labor and materials.

Over the coming weeks, we’ll send you updates about what is driving this industry-wide craziness. If you have any questions or need further information, please don’t hesitate to contact us.