Changes to NJ PIP Auto Insurance System Under Consideration

Aug. 9, 2011 - PRLog -- According to a report published in The Asbury Park Press, the New Jersey legislature is trying to find ways to deal with the rising costs of insurance premiums in the state. Rising rates are thought to be a contributing factor in the rising number of uninsured motorists across the United States.

A statement released by Marshall McKnight, spokesman for the New Jersey Department of Banking and Insurance, says that 97 percent of requested insurance rate increases are a result of personal injury protection (PIP).  The state legislature is considering a few changes to the PIP system which would decrease rates when you get a car insurance quote (http://www.getacarinsurancequoteonline.com). These changes would reduce insurance companies costs by lowering the fees paid to same-day surgery centers, reducing payment levels to alternative providers like chiropractors, and imposing caps on attorney's fees in arbitration cases. ''The goal is to control PIP costs so we do what we can to reverse this upward pressure on rates that PIP is having right now on auto insurance,'' said McKnight.

The changes would stop the use of ''diagnostic tests or practices that are not from evidence-based, clinical guidelines published in peer-reviewed journals.'' The legislation is based on sound logic. Hopefully, when costs drop, so will premiums.  Overall, lower insurance premiums will leave money in the pockets of those who need to finance a car with a New Jersey auto loan (http://www.carloaninnewjersey.com).