New Jersey Governor James E. McGreevey, joined by Banking and Insurance Commissioner Holly C. Bakke, applauded Allstate New Jersey’s plans to return $15 million to more than 200,000 auto insurance policyholders.
McGreevey credited auto insurance reforms he sigend into law last June for the dividends.
“When I took office, the auto insurance market in New Jersey was in desperate need for reform. I made a promise to improve the marketplace and give good drivers the choices and competition they deserve,” Governor McGreevey said. “Allstate New Jersey’s announcement, coupled with the auto reform achievements over the past year, demonstrates that we are delivering on our promise to put a downward pressure on rates.”
McGreevey signed his auto insurance reform package in June 2003. Since then, $133 million has been returned in the form of dividends and rate reductions to more than one million drivers. Allstate New Jersey’s announcement brings the amount of money returned to drivers up to $148 million.
“New Jersey’s auto marketplace is paving the way for companies like Allstate to prompt competition and create jobs further putting downward pressure on rates,” Commissioner Bakke said. “Allstate New Jersey’s announcement is another milestone in our efforts to build a stronger consumer-directed market where drivers are winning.”
Over the past year, Allstate has made various investments in the new marketplace. In August 2003, Allstate announced its first expansion since 1975. To date, the company has opened more than 21 new sales offices statewide and has added more than 120 staff members able to write policies.
“The policyholder dividend is just one of many ways Allstate New Jersey provides its customers with best-in-the business service,” said Allstate New Jersey President Richard C. Crist, Jr. “When we established Allstate New Jersey, we built this option into our customers’ policy that envisioned a day when we had the ability declare a policyholder dividend. As Allstate New Jersey’s president, I’m extremely proud that this time has arrived.”
Allstate New Jersey is the largest insurer in the state in terms of written premiums, insuring more than 700,000 vehicles, an increase of five percent each year for the past three years.