GEICO, the largest auto insurer in the state of New Jersey, received approval from the New Jersey Department of Banking and Insurance to increase its premiums 18.7% on renewal business effective March 27, 2024.
The NJDBI approved GEICO’s rate request as the carrier tries to improve its profitability. This change will affect about 620,000 policyholders. GEICO requested a change to increase their profits in the state. This change will impact approximately 620,000 policyholders. As a result, customers will have to pay an additional $228 million per year, totaling over $1 billion.
It’s expected that the annual average car insurance cost in New Jersey with GEICO is about $1,600, but this rate increase is expected to lift that cost to $1,900—a $299 boost per policy year.
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GEICO is the largest auto insurer in the state of New Jersey, underwriting about 20% of the market. Other major insurance companies in New Jersey to consider for good prices are Allstate, Progressive, State Farm, and Plymouth Rock.
Current GEICO policyholders who are concerned with the average car insurance cost in New Jersey going up don’t just need to sit back and take the increase. There are several steps you can take to save on insurance ahead of renewal so you don’t get stuck swallowing that increase.
Shop Around
Insurance companies offer different rates depending on a number of factors, so it’s important to compare quotes from multiple providers to get the best deal. Typically shoppers seem to find the best results when they quote at least three carriers. With online comparison tools like Auto Quote Tracker, you can quickly quote with multiple carriers and find the insurer best suited to your needs.
Early Renewal
If your GEICO policy in New Jersey is up for renewal soon, try reaching out to them to see if you can renew sooner. Often times, you will not only be able to lock in current rates before they go up, but you may also get a discount on your rate for early renewal.
Keep Your Record Clean
Insurers in New Jersey have different rules for underwriting. Usually, an accident won’t affect your quote after three to five years.
Try to drive safely, but also consider shopping around after a few years if you’ve had an accident. Look for a different insurance company that offers the same coverage at a better price.
Check Your Coverages
Examine your current policy and review your current coverages. You can find more information about some of your current coverages here, or contact your carrier to see if there are other options to reduce your rate increase, such as raising your deductible or changing your policy limits.
Look for Discounts
Insurers give discounts for combining policies (such as home and auto insurance) or affiliations with certain groups, including:
- Alumni Associations
- Professional Organizations like the American Bar Association or American Medical Association
- Military and Government Employees
- Large Employers
- Union Members
- AAA Members
- Good Student Discounts
- Defensive Driving Courses
- Senior Discounts
When shopping, see if insurers will give you discounts for these or any other groups of which you may be a member.
GEICO, The Good and The Bad
Before you start shopping around, take some time to consider the positive and negative aspects of GEICO as an insurance company. This will help you determine if sticking with them or moving to another carrier is the right choice for you. The grass isn’t always greener on the other side, but it always worth looking over the fence.
The Good
Speedy Service with a Smile: Imagine a fender bender, not as a screeching stop in your day, but as a chance to experience GEICO’s lightning-fast service.
Their customer care team is available all the time to help you. They can answer questions, calm worries, and assist you quickly and kindly to get you back on track.
Tech Tools for a Smoother Ride: GEICO isn’t just about paperwork and phone calls. They’ve embraced the digital age with a toolbox of tech that makes managing your insurance a breeze.
You can do everything related to your insurance without leaving your couch. This includes checking your policy, filing a claim, and getting roadside assistance. Their user-friendly app is like a trusty GPS for your insurance needs, guiding you through every step with ease.
Peace of Mind with Personalized Protection: Let’s face it, insurance can feel like a confusing maze. But GEICO helps you navigate the turns with customizable coverage options. You can customize your car insurance plan to match what you need and can afford, from basic coverage to full protection.
The Bad (Aside From That Rate Hike)
Limited Coverage Options: Unlike some competitors with a smorgasbord of add-ons and bells and whistles, GEICO tends to stick to the core coverages. If you need specialized insurance for classic cars or specific business vehicles, their options may not be sufficient.
Customized Care Can Have Limits: While GEICO shines in streamlining processes, their focus on online management can mean less personalized support compared to some insurers. If you thrive on regular check-ins, detailed explanations, or hands-on guidance, their self-service approach might feel like navigating a one-way street instead of a friendly two-lane highway.
Car Insurance Costs Keep Going Up
New Jersey isn’t the only state getting hit with insurance rate increases. Car insurance prices are increasing across the country. This is because of higher expenses caused by advancing technology, specialized repairs, and more frequent and severe incidents.
As technology continues to advance, the cost of car insurance is steadily on the rise. It’s not just New Jersey feeling the impact; this trend is affecting drivers all across the country. The reason behind these increasing prices can be attributed to a variety of factors.
Firstly, the advancements in technology have led to more sophisticated vehicles on the road. While this is great for safety and convenience, it also means that repairs are becoming more specialized and expensive. With intricate computer systems and advanced features, even a minor fender bender can result in a hefty repair bill.
Additionally, the frequency and severity of accidents have been on the rise. Distracted driving, reckless behavior, and an overall increase in traffic congestion have all contributed to a higher number of incidents on the road. As a result, insurance companies are facing a greater number of claims, leading to increased costs that are ultimately passed on to the policyholders.
Ultimately, as car insurance costs continue to rise, it’s essential for drivers to stay informed and explore all available options. Comparing quotes, understanding coverage options, and seeking out discounts can help mitigate the impact of these increasing prices. By staying proactive and informed, drivers can navigate the road ahead with confidence, even in the face of rising insurance costs.
