Report USAA Will Reduce NJ Auto Rates

October 27, 2003

The United Services Automobile Association Group, which insures around 91,000 New Jersey drivers, will reportedly begin lowering rates as of the 1st of December.

According to a report that appeared in the NJ Star-Ledger, USAA, which insures mainly military personnel and veterans, plans on making an average five percent reduction in its premium rates.

It’s the second NJ auto insurer to recently announce cuts. State Farm, New Jersey’s largest auto insurer, which had been on the brink of pulling out of the market entirely, announced plans to reduce rates by an average 4.1 percent last month.

The article noted that most of the credit for the decreases should go to the reforms in the state’s auto insurance laws enacted last June. Although NJ remains the most expensive state in the country in which to obtain auto coverage, it seems to be moving in a new direction. The new provisions, backed by Governor James E. McGreevey, have reduced unneccesary regulation, and have encouraged new companies, including California-based Mercury General, to enter the market for the first time in years.

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