NJ LAWMAKERS: DON'T DRIVE CAR INSURANCE OFF AN AFFORDABILITY CLIFF

All told, the impact of these five bills on the wallets of New Jersey drivers could cause some to forgo insurance altogether.

Thanks to a toxic combination of inflation, record-breaking gas prices, climbing interest rates, and a chronic labor shortage, the simple yet necessary task of driving from place to place is becoming prohibitively expensive for many New Jersey residents.

Unfortunately, the Legislature is poised to make things even worse for Garden State drivers instead of better, moving forward on a series of bills that will collectively spike insurance costs.

The cost of everything is up, from filling your tank to accessing routine maintenance and vital repairs to merely purchasing a vehicle -- new or used, assuming you can find one on the lot. Coupled with the rising cost of basics like groceries and rent, and everyday New Jerseyans are struggling just to make ends meet.

As they announced a recent budget deal, Gov. Phil Murphy and legislative leaders rightly recognized the need to address the impact of hyper global inflation, choosing to do so with a $2 billion property tax break program.

But whatever relief that program affords could well be moot if lawmakers approve legislation that could hike the price of auto insurance premiums by as much as 90%.

Two of the five bills under consideration are particularly egregious, forcing individuals and small businesses to purchase far more insurance than they may want or can afford and potentially increasing annual premiums by as much as $300 to $1,000, respectively.

Two other bills would significantly curtail or altogether end consumer choice related to personal injury protection. The first would eliminate PIP options and require $250,000 of medical expense benefits under standard insurance policies. The second prohibits selection of health insurance coverage as primary under PIP, an option that saves drivers money.

That pair of bills, if passed and signed into law, could result in a PIP premium increase of more than 125% -- up to $650 -- every year, according to data provided by the Insurance Council of New Jersey member companies.

Clearly, that's an increase New Jersey residents just can't afford. And it's only the tip of the iceberg.

All told, the impact of these five bills on the wallets of New Jersey drivers could cause some to forgo insurance altogether - especially low-income drivers who already must dedicate a higher proportion of their paycheck to obtaining coverage. A rise in uninsured vehicles on the road would be a public safety hazard, reversing years of hard-won progress that has driven our state's uninsured motorist rate to an historic 3.1% -- the lowest in the nation, according to the Insurance Research Council.

Thanks to the Auto Insurance Reform Act of 2003, the price of premiums have grown far slower than the rate of inflation over the past two decades and auto insurance in New Jersey is more affordable and widely available than ever before. However, it still remains among the top ten highest in the nation.

Effectively, lawmakers are poised to give with one hand and take away with the other with this package of ill-conceived legislation. If these bills become law, all the rhetoric about providing relief to New Jersey residents at a time when the cost of living is steadily rising will ring hollow.

Now more than ever, Garden State residents need smart policies that improve their standard of living and help keep them and their families and loved ones safe. These bills do just the opposite. They should not make it to Murphy's desk in the first place, but if that occurs, he must do the right thing and reject them out of hand. New Jersey drivers are counting on it.

Christine O'Brien is president of the Insurance Council of New Jersey, the leading property and casualty insurance advocacy group acting on behalf of insurance companies and policy holders in the Garden State.

All told, the impact of these five bills on the wallets of New Jersey drivers could cause some to forgo insurance altogether.