NJ Insurance Enviroment Changing!
NJ Insurance Enviroment Changing!
Effective February 1, 2009, NJ is back to a potentially difficult enviroment.
A few terms I'll define first.
"Take all comers" is an enviroment where companies who write in NJ must accept all comers with 7 pts or less within 3 years.
"Incidents" are any moving violation, chargeable accident or non-chargeable accident.
Combined Ratio" combination of loss ratio and operating expense.
New rules (which would apply to most here) - If you are one vehicle and have more than one incident within the past three years, you are ineligible for voluntary insurance. If you have more than one vehicle, then we will accept as many incidents as vehicles. For example, 2 vehicles and we will accept no more than two incidents within 3 years. 3 vehicles=3 incidents spread amongst all drivers!
What has happened? Competition has brought lower rates. Lower rates means higher combined ratios if underwriting is not in check. So now companies will scramble to correct underwriting.
What we are seeing is a higher occurance of companies non-renewing insureds from all companies. It has gotten very busy lately because of this.
Should you have questions with your carrier or Allstate, post them here and either Chase or myself will respond.
__________________
A few terms I'll define first.
"Take all comers" is an enviroment where companies who write in NJ must accept all comers with 7 pts or less within 3 years.
"Incidents" are any moving violation, chargeable accident or non-chargeable accident.
Combined Ratio" combination of loss ratio and operating expense.
New rules (which would apply to most here) - If you are one vehicle and have more than one incident within the past three years, you are ineligible for voluntary insurance. If you have more than one vehicle, then we will accept as many incidents as vehicles. For example, 2 vehicles and we will accept no more than two incidents within 3 years. 3 vehicles=3 incidents spread amongst all drivers!
What has happened? Competition has brought lower rates. Lower rates means higher combined ratios if underwriting is not in check. So now companies will scramble to correct underwriting.
What we are seeing is a higher occurance of companies non-renewing insureds from all companies. It has gotten very busy lately because of this.
Should you have questions with your carrier or Allstate, post them here and either Chase or myself will respond.
__________________
It is not the intent to now mass non-renew insured's in NJ. Normal claim activity is and will always be the responsibilty of an Insurance co. It's expected and thats what we are here for. An Insurance co. is here to "Lay Off" or transfer risk from you to them for a premium. It's a bet in a sense. There are built in expectations for loss.
But its also a business and when the combined loss ratio begins to creep into its expected returns, an Insurance co. will begin to tighten its underwriting in order to control those combined losses.
Yes, Platinum is a contract to protect you from any increase due to tickets or accidents. As long as you remain responsible for loss activity, you will be fine. I realize thats sounds a bit one sided, but remember its a business. An Insurance co is not in the business of taking business off it's books unless it feels that it is being taken advantage of. You'll be fine and I'm always here to answer questions, run interference or handle disputes.
But its also a business and when the combined loss ratio begins to creep into its expected returns, an Insurance co. will begin to tighten its underwriting in order to control those combined losses.
Yes, Platinum is a contract to protect you from any increase due to tickets or accidents. As long as you remain responsible for loss activity, you will be fine. I realize thats sounds a bit one sided, but remember its a business. An Insurance co is not in the business of taking business off it's books unless it feels that it is being taken advantage of. You'll be fine and I'm always here to answer questions, run interference or handle disputes.
Thanks Rick!
If you have a company car and a separate car insured though Allstate, would an accident in my company car affect my ALLSTATE insurance? The company car is not insured by Allstate.
If you have a company car and a separate car insured though Allstate, would an accident in my company car affect my ALLSTATE insurance? The company car is not insured by Allstate.
No, rate adjustment is determined by driving record and loss history. In other words, it follows the driver not the car.
In your case or anyone with Platinum on their policy, you are protected against rate increase because of your optonal coverage.
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