AIG Lowers N.J. Auto Rates

AIG Auto Insurance said it will lower auto insurance costs for more than 55,000 policyholders in New Jersey. Beginning June 30, 2005, AIG Auto Insurance will implement a 4 percent rate decrease, which will lower auto insurance costs on more than 115,000 vehicles and result in a savings of more than $5 million for New Jersey drivers insured by American International Insurance Company of New Jersey.

“AIG Auto Insurance is committed to the New Jersey market,” said Tony DeSantis, president of AIG Marketing, Inc., the personal lines direct marketing arm of AIG that includes AIG Auto Insurance. “While some carriers have entered, exited and re-entered the market over the years, AIG Auto Insurance has continually offered New Jersey drivers comprehensive auto coverage at competitive rates. We appreciate the cooperation of the New Jersey Department of Banking and Insurance during the filing process for this rate decrease and look forward to continuing our long and productive relationship with New Jersey consumers.”

The state represents one of the largest customer segments for AIG Auto Insurance, which provides insurance coverage for over 5 percent of New Jersey drivers. While 40 auto carriers have left the New Jersey market in the last 15 years, AIG Auto Insurance has remained.

“Positive changes in the New Jersey regulatory environment have given us reason to be optimistic about the future of the auto insurance market in New Jersey,” continued DeSantis. “The New Jersey market is as competitive as it has ever been, which can only benefit consumers. We look forward to working with the drivers of New Jersey to provide insurance coverage that meets their needs and provides a cost effective alternative to other companies in the state.”