Auto insurance in New Jersey likely to climb

Associated Press



TRENTON

An insurance industry study claims New Jersey's car insurance rates could increase due to a state Supreme Court ruling making it easier for accident victims to sue.



The study commissioned by Safe Choices for NJ Drivers, an industry interest group, found the average premium could rise by as much as $182, or an increase of between 9 and 14 percent.



A Supreme Court ruling in June allows people who suffer permanent injuries in car accidents to sue over pain and suffering, even if their injuries are minor. The insurance industry wants state lawmakers to amend the law to allow such lawsuits only in cases of serious bodily injury.



Jaimee Gilmartin, a spokeswoman for the state Department of Banking and Insurance, said the department has seen no evidence that the court decision is causing financial problems for insurers.



The National Association of Insurance Commissioners has found New Jersey drivers paid $1,188 on average in 2003.



That was the highest in the nation.



A state appeals panel cited the June decision Thursday in ruling that a lower court must reconsider the case of a woman who sued after an accident in which she suffered bone fractures. The appeals panel said, even though the fractures were not of the most serious nature -- all which fall under the state law protecting accident victim lawsuits -- the bone breaks still may have resulted in permanent injury.