New Jersey Car Insurance Laws that Protect Consumers?

Answer 1

There are statutes and laws in place that protect consumer rights. These laws provide protection against discriminatory practices in matters such as terminations, cancellations and denial of car insurance coverage. Included below are car insurance laws that protect consumers in New Jersey.

Right to Change or Cancel Your Insurance Policy

All consumers have a right to change or cancel their current insurance policy whether it is up for renewal or not. If you shop around and find a cheaper policy, cancel your old one. You are also entitled to a refund of any unused premium you have paid. In the state of New Jersey, insurers have to pay consumers their refund within 60 days of their cancellation. Please note, do not cancel your automobile insurance until you have secured other insurance. A lapse in coverage could mean higher insurance rates.

Your Right to a Cancellation Notice

Under special circumstances, insurance companies have a right to cancel your insurance policy during the policy period. Situations such as: having your license suspended or failing to make premium payments will cause this mid-term cancellation. As a consumer, an insurance company has to send a 15-day warning notice of cancellation intentions to the consumer before the policy is canceled.

Your Right to a Non-renewal Notice

Insurance companies have a right to decline the renewal of coverage of some policy holders. This can happen if the policy holder no longer meets the company's acceptance criteria, if the driver has driving violations, an at-fault accident or poor payment history. Insurers have to send a written non-renewal notice at least 60 calendar days prior to the expiration date of the existing policy.

Right to an Appeal

If your automobile insurance is cancelled or you're denied coverage unfairly, you have a right to an appeal. This appeal can be filed with Consumer Protection Services department with New Jersey's Department of Banking and Insurance. It can be reached at (800) 446-7467.