Warren Buffett Praises N.J. Auto Insurance Market Turnaround and Outgoing Chief Bakke

March 7, 2005

  • March 8, 2005 at 4:22 am
    Anuraag Sunder says:
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    Credit scoring, Political environment,PIP: valid points. But would it be dangerous to assume that Bakke would ensure none of these come in the way of NJ’s auto market success. Lets grant it, NJ Auto mkt has improved over 70s & is consistently attracting some of the best underwriters. Lets wait & watch !

  • March 7, 2005 at 6:42 am
    J. Jones says:
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    Mr. Buffett is giddy about NJ for auto insurance? I can not wait for three years from now when the losses hit and Geico NJ is in the red. National auto insurance companies have NO IDEA what they are in for in NJ. There are already bills before the legislature to abolish credit scoring which is what prompted Geico and Mercury Insurance and now Progressive to enter the NJ market for auto insurance. Once credit scoring is gone, these national companies will flee as fast as they entered the market. Mr. Buffett is dead wrong on this one. The political environment in NJ is too corrupt and fickle. The rules a company operates under now for insurance can change in an instant. The regional auto insurance companies know this and have set up their rate structures to reflect this. So… when credit scoring goes away in NJ, like it will, Geico will flee once again because they will be flowing in red ink because of the high Personal Injury Protection claims. Remember, each driver on a policy is covered up to $250,000 for medical bills per incident. No more help from the Dept of Insurance to help cover the loss in the PIP part of the claims. The companies are on the hook for ALL OF IT!

    Good luck Warren, you will need it. Just get the names of the people in your organization who recommended re-entering NJ and get ready to hang them!

  • March 8, 2005 at 9:44 am
    NJ driver says:
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    It would be quite dangerous to assume that Bakke would ensure that these perils will not come about. Bakke was ousted about a month ago.

  • March 8, 2005 at 10:16 am
    Jimmy says:
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    First of all, I would like to point out that I would trust Warren Buffett’s judgement over yours.

    Secondly, here is the options for PIP in NJ. You don’t automatically get $250,000 worth of coverage, but you get a choice…the more you choose, the more you pay.

    PIP Medical Expense Deductible and Limit Options
    Options Medical Expense Deductible Medical Expense
    OPTION A $250 $15,000
    OPTION B $250 $50,000
    OPTION C $250 $75,000
    OPTION D $250 $150,000
    OPTION E $250 $250,000
    OPTION F $500 $15,000
    OPTION G $500 $50,000
    OPTION H $500 $75,000
    OPTION I $500 $150,000
    OPTION J $500 $250,000
    OPTION K $1000 $15,000
    OPTION L $1000 $50,000
    OPTION M $1000 $75,000
    OPTION N $1000 $150,000
    OPTION O $1000 $250,000
    OPTION P $2000 $15,000
    OPTION Q $2000 $50,000
    OPTION R $2000 $75,000
    OPTION S $2000 $150,000
    OPTION T $2000 $250,000
    OPTION U $2500 $15,000
    OPTION V $2500 $50,000
    OPTION W $2500 $75,000
    OPTION X $2500 $150,000
    OPTION Y $2500 $250,000

  • March 8, 2005 at 10:53 am
    Bachiobb says:
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    As a newcomer to the state, but for Geico, i would not have got insurance at a reasonable price – when almost every regional carrier was not ready or prices were astronimical- At satelite insurance premiums ! I think we need to support GeICO to make the insurance prices reasonable and affordable.

  • March 9, 2005 at 8:47 am
    Jack says:
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    Maybe Buffett is so wild about New Jersey and its commissioner because he got a deal no other company could get. Does anybody really know what GEICO’s special deal was? Time will tell if the citizens of New Jersey have good rates from GEICO or their usual marketing practice of “suck them in and then jack up their rates.”

  • March 12, 2005 at 2:43 am
    Tina says:
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    Switched to geico in Jan., saving $2200…if they leave one day oh well, enjoying the savings now….tired of paying $4200 on two vehicles…

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