Change is a constant, and that certainly holds true in the world of auto insurance. Recently, Progressive Insurance Company announced a rate increase of 4.9% for personal auto policies, set to take effect on March 29, 2025.
Let’s take a moment to unpack what this means for New Jersey drivers.
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What’s Happening?
Currently, the average annual premium for a Progressive auto policy in New Jersey sits at approximately $2,459. This figure represents the collective average across a diverse range of drivers, vehicles, and coverage levels.
With the upcoming 4.9% adjustment, the expected new average premium for a renewed policy will be around $2,580. This translates to an increase of roughly $121 per year, impacting an estimated 415,355 policyholders.
Why Are Rates Increasing?
While any increase can raise questions, it’s important to understand that these adjustments are often a reflection of various factors influencing the insurance landscape. With this in mind, there are likely a few reasons why Progressive is increasing its rates:
- Rising costs of repairs: The cost of auto repairs has been steadily increasing in recent years, due in part to the rising cost of materials and labor. This means that it costs insurers more to pay for repairs when their customers are in accidents.
- Increasing frequency and severity of accidents: The number of car accidents is also on the rise, and the accidents that are happening are more severe. This means that insurers are paying out more claims, which drives up costs.
- Inflation: The overall cost of living is also increasing, which means that insurers are paying more for things like rent and utilities. This also drives up the cost of doing business.
How Can You Save on Your Car Insurance?
If you’re a Progressive customer in New Jersey, there are a few things you can do to save money on your car insurance:
- Shop around for quotes: Don’t just assume that Progressive is the best deal. Get quotes from other insurers to see if you can find a better rate. You can use our free quoting tool to find cheap car insurance options that fit your needs!
- Increase your deductible: A higher deductible means you’ll pay more out of pocket if you have an accident, but it can also lower your premium.
- Improve your driving record: A good driving record can qualify you for discounts on your car insurance.
- Take a defensive driving course: Completing a defensive driving course can also qualify you for discounts.
- Bundle your policies: If you have other insurance policies with Progressive, such as home or renters insurance, you may be able to get a discount for bundling your policies.
Take Action Before the Increase
It’s important to remember that car insurance rates are always changing. If you’re not happy with your current rate, be sure to shop around for a better deal. You may be able to save money by switching to a different insurer or by making changes to your current policy.
Don’t get caught off guard by a rate increase! Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.
