New Jersey senator questions insurance department on rates and survivor support

In a recent meeting of the New Jersey Senate Budget and Appropriations Committee, pressing issues surrounding car insurance rates and the impact of childhood abuse survivor legislation took center stage. As the clock struck 11 AM on May 1, 2025, senators gathered to address concerns raised by constituents, particularly regarding the rising costs of car insurance.

One senator highlighted a common theme in constituent emails: the relentless increase in car insurance rates. In response, a department representative assured the committee that they are committed to consumer protection. The department has successfully blocked over a billion dollars in proposed rate increases, emphasizing their rigorous actuarial review process for any requested changes. This proactive stance aims to ensure that consumers are not overburdened by unnecessary costs.

Shifting gears, the discussion turned to a more sensitive topic—the implications of recent reforms for survivors of childhood sexual abuse. A senator expressed gratitude for the department's assistance but underscored the challenges faced by public schools, particularly in Clinton Township, where alleged abuses occurred decades ago. With the original insurer no longer in operation, the financial burden of settlements now threatens the school district's budget, potentially leading to cuts in essential services.

The senator urged the department to assess the role of property liability insurance guarantee associations in supporting schools lacking viable insurance for legacy claims. While the department clarified that it does not oversee these associations, they expressed willingness to assist in navigating the complexities of the situation. The conversation hinted at the need for legislative remedies that could balance the pursuit of justice for survivors with the financial stability of public institutions.

As the meeting progressed, another senator raised a question about the fairness of using educational background as a factor in determining car insurance premiums. The department representative acknowledged the longstanding practice of considering various factors, including education and credit scores, in insurance rating systems. While these practices comply with state law, the discussion opened the door for further examination of equity in insurance pricing.

The meeting concluded with a sense of urgency surrounding these issues, as lawmakers recognized the delicate balance between protecting consumers, supporting survivors, and ensuring the viability of public institutions. As New Jersey navigates these complex challenges, the outcomes of these discussions will undoubtedly shape the future landscape of insurance and public policy in the state.