In a recent opinion piece published by NJ.com, Alex Daniel, vice president and general counsel at the New Jersey Civil Justice Institute, argues that escalating auto insurance premiums in New Jersey are once again being driven by factors that nearly destabilized the market in the past — namely, insurance fraud and aggressive legal advertising.
Daniel recounts how, in previous decades, New Jersey faced a near-collapse of its auto insurance system due to excessive litigation and inflated claims. At that time, lawmakers enacted reforms that helped stabilize premiums and improve access to coverage. However, he warns that those hard-earned gains are now at risk.
The op-ed cites a 17.2% increase in 2025 that has pushed average full-coverage premiums close to $2,400 per year, placing New Jersey among the most expensive states for auto insurance. Daniel attributes this rise to a resurgence of staged accidents, billing manipulation, and prolonged legal disputes. According to the piece, the state experienced a 58% increase in staged crashes in a single year.
According to Daniel, another significant contributor is the volume of legal advertising. In 2023, more than 642,000 legal service ads aired across the New York and Philadelphia markets, costing over $105 million. This saturation, he argues, encourages a litigation-first mentality among drivers, delaying settlements and inflating claim costs.
Daniel calls for renewed legislative action to prevent a repeat of past failures. He suggests targeted measures, such as enhanced fraud reporting and stricter legal standards to curb frivolous lawsuits. He concludes that these steps, similar to those taken in the late 1990s and early 2000s, could once again bring balance and affordability back to New Jersey’s auto insurance market.
This summary reflects the opinions expressed by Alex Daniel in his op-ed for NJ.com. It does not include analysis or commentary beyond the author’s published viewpoint.
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