Consumer groups and car insurance companies against Murphy signing bill that would increase rates

Members of the automobile insurance industry are calling on Gov. Phil Murphy not to sign a bill lawmakers passed last month that would increase insurance rates for over 1 million New Jersey drivers.

News 12 Staff

Jul 9, 2022, 12:34 AM

Updated 708 days ago

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Members of the automobile insurance industry are calling on Gov. Phil Murphy not to sign a bill lawmakers passed last month that would increase insurance rates for over 1 million New Jersey drivers.
“We’re talking about safe drivers here. This isn’t a bill to increase the rates for bad drivers. That’s not what the bill is,” says Eric Poe, CEO of CURE Auto Insurance.
Poe is among those asking Murphy not to sign the bill, which would increase insurance rates an average of $120 per year.
“At a time with rising inflation and $6 a gallon for gas, how can we pass a bill that raises the rates for the poorest 22% of the drivers in the state of New Jersey?” Poe asks.
CURE insures many drivers without desirable credit scores or higher education – poorer residents that would be the hardest hit by the change.
“We end up getting drivers that are probably in the more middle to lower income,” Poe says.
Poe estimates that 80% of his 25,000 customers get the minimum necessary personal injury coverage. Those minimums would go up in January and then again three years later if the bill becomes a law. Poe says that he believes many of his customers would drive without insurance as a result.
“Most drivers that leave CURE go uninsured. If they can’t afford our rate, they can’t afford any rate,” Poe says.
New Jersey state Senate President Nick Scutari, who works as a personal injury attorney, says the changes are necessary to protect those who get hurt in car crashes.
The governor is currently out of state and on vacation in Italy through July 20. Acting. Gov. Shelia Oliver currently has the power to sign or veto legislation.


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