goleader.com - Union County, NJ Newspapers 97sep11

union county nj
Letters to the Editor

Car Insurance Premiums Can Only Go Down if Expenditures Are Less

The silly season appears to be upon us once again. I refer, of course, to the nonsense about automobile insurance costs that seems to emerge with predictable regularity during election years in New Jersey, particularly from politicians who don’t seem to be able to come up with much else to talk about.

They complain that New Jersey automobile insurance premiums are the highest in the nation. Okay, let’s accept that for the sake of argument. We live in a very congested state. We also have at least our fair share of drivers who behave on the road as if they were complete idiots.

Given that, why should anyone be surprised that New Jersey automobile insurance costs are up there at or near the top of the list?

Are there things that might be done to reduce our premiums? Sure. Anything we can do that will decrease the amount of money that insurance companies have to pay in order to satisfy claims that are made against them is going to reduce the amount they have to receive in premiums in order to remain solvent.

Individual policy holders may always opt for less coverage or for higher deductibles, either of which may or may not be a particularly smart move. Alternatively, the state may strive to impose other restrictions on the amounts of money the insurance companies may be required to disburse.

Either we do something to help reduce insurance company expenditures, or we continue to pay whatever it takes in premiums to continue to keep reasonably well managed insurance companies solvent.

I would prefer not to have to depend upon an insolvent or only marginally solvent insurance company should I find myself in the unfortunate position of having to submit a claim.

Robert B. Ardis, Mountainside

Copyright 1997
TheWestfield Leader
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Revised: September 14, 1997.