Joseph Alfano, who works for an office supply company in Clifton, N.J., got a pleasant surprise when he renewed his car insurance this summer. The premium on his 1997 Mercury Mountaineer dropped nearly 30 percent, to $1,273 a year.
“It went down almost $500,” Mr. Alfano said. “That’s significant money.”
More tellingly, it provides a case study in what happens when competitive forces are unleashed and markets are allowed to operate more freely. And while some drivers are worse off, the vast majority of consumers have gained from the changes.
Throughout the country, New Jersey and Massachusetts stood out for their heavy regulation. Some of the biggest insurers shunned the states. But that started changing in New Jersey when state officials, worried that even more insurers would leave, finally decided to give the industry much more flexibility with prices and driver ratings.
Car Insurance Rates Drop in New Jersey - New York Times: If NJ can do it, how about some insurance reform in Massachusetts?
Posted by Harry Mattison on 8/24/2006 05:56:00 AM