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Bill

Bill

A 5846

Revises territorial rating plans used by insurers writing private passenger automobile insurance.

2024-2025 Regular Session Introduced by Craig Coughlin

New Jersey revises auto insurance territorial rating maps that determine regional premium rates, potentially shifting costs between different geographic areas.

Introduced in the Assembly, Referred to Assembly Financial Institutions and Insurance Committee
#insurance #motorvehicl
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Bill Summary · A 5846

Legislative bill overview

Bill A 5846 modifies how insurance companies in New Jersey divide geographic areas (territories) when setting rates for private passenger auto insurance. The bill adjusts the territorial rating system that insurers use to calculate premiums based on where vehicles are primarily garaged or driven.

Why is this important

Auto insurance rates significantly affect household budgets, and territorial ratings directly determine what different New Jersey residents pay for coverage. Changes to these rating systems can shift costs between urban, suburban, and rural areas, potentially making insurance more or less affordable depending on where you live.

Potential points of contention

  • Geographic equity concerns: Revising territories could raise rates for some communities while lowering them for others, creating winners and losers among different regions
  • Insurance company compliance costs: Implementing new territorial maps and rate structures requires administrative changes that insurers may pass on to consumers
  • Actuarial accuracy debate: Whether revised territories better reflect actual claims data and driving risk, or if changes are based on policy goals rather than insurance mathematics

Compiled from official sources — confirm details with the bill’s official record.

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