NJBIA today urged Senators to reject a bill that could bring back skyrocketing auto insurance rates by undermining the state’s no-fault insurance system. The Senate is scheduled today to vote on S-2432, which would permit recovery of certain medical expenses as uncompensated economic loss in automobile accident.
In a letter to Senators, NJBIA Chief Government Affairs Officer Chrissy Buteas said the association is concerned about cost.
“This bill will reverse this trend toward affordable auto insurance by creating a fault-based system of auto insurance in New Jersey,” Buteas said. “This will increase litigation and medical costs for insurance companies, ultimately resulting in increased auto insurance costs for New Jersey residents.”
“The state has been successful in preserving its no-fault insurance system, which provides New Jersey residents with available and affordable auto insurance coverage,” Buteas said. “One of the main goals of the state’s no-fault system is to address legal delays and costs by keeping minor claims of auto-related medical expenses out of the legal system. The creation of PIP arbitration, medical protocols, and fee schedules has done this well.”
The legislation also is premature, Buteas said, as the New Jersey State Supreme Court is expected to rule on the issue in the coming months?. The court has recently granted a petition for certification, and oral arguments are expected in the fall.
“The Supreme Court of New Jersey has reviewed briefs on this issue detailing the history of no-fault legislation and the effect of the Appellate Division’s decision on the state’s PIP coverage scheme,” Buteas said. “This is a complex issue that involves a complicated statutory and regulatory scheme, and we ask that the Senate hold S-2432 until a decision is delivered by the Supreme Court.”
3 responses to “Don’t Undermine NJ’s No-Fault Insurance System, NJBIA Says”
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We couldn’t leave gasoline prices alone last year, now we have to make insurance rates go up. Who’s going to pay for all this once the working class & anyone overtaxed/burdened leaves?
Medical bills have been recoverable since the beginning of no fault law so how would insurance rates increase if they have not increased despite medical bills being compensable for years?
Please ask yourselves the following questions after reading this article:
HAS ANYONE’S INSURANCE RATES DECREASED SINCE THE RECENT DECISION OF HAINES V. TAFT? I THINK NOT.
HAS ANYONE’S INSURANCE COMPANY CALLED THEM TO RELAY THE GREAT NEWS THAT THEIR INSURANCE PREMIUMS HAVE DECREASED NOW THAT OUTSTANDING MEDICAL BILLS ARE NOT COMPENSABLE IF AN INSURED SELECTS A LOWER PIP LIMIT? I THINK NOT.
THIS LAW HELPS FROM POTENTIALLY BANKRUPTING VICTIMS WITH OUTSTANDING MEDICAL BILLS THROUGH NO FAULT OF THEIR OWN.
All the lawyers send you to all of the doctors to help fill their pockets with your money. I don’t think that is right. We as the injured then have to suffer with the injuries. We should not have to pay, the people that caused the accidents should have to pay too. I am all for this bill to be sign by the governor. It’s pretty bad when our lawyers walk away with more money then us.