New Jersey is facing a cost crunch that could result in auto insurance premiums rising by as little as $150 per month for new cars.
The new rate caps would apply to all new vehicles sold in New Jersey and the rest of New York, including in areas where insurance companies currently offer premium discounts.
Those caps would affect any new cars sold in the state, and could affect the statewide cap of up to $1,500 per year, according to an industry report obtained by The Verge.
New Jersey Governor Chris Christie has said he wants to keep rates low for the state’s auto insurance marketplaces, but some industry experts have said the state may be willing to consider lowering rates if the cost of insurance is lower.
The new caps are likely to be imposed on cars sold before January 2018.
While the industry group for the auto insurance industry called the caps “premiums,” some experts cautioned that lower rates could be offset by higher out-of-pocket costs for consumers.
The industry report said the caps could apply to vehicles sold between December 2017 and December 2018.
Under Christie’s proposal, insurers would be able to reduce their premiums by up to 40 percent, and would pay out an average of $300 per policy for each vehicle they sold.
Christie has also said he would not allow insurers to increase their premium caps.
However, a spokesman for the Insurance Department said the cap on premiums for 2018 is still in effect.
Christie, a Republican, is facing criticism from insurers over his handling of the insurance market.
His administration has said that insurers are cutting costs by offering higher premiums and offering more comprehensive benefits than previously, but the report found that the new caps would not affect the average rate charged by insurers for all models.