Insurance: A Head-On Collision

A Head-On Collision

Already plagued by the highest automobile insurance rates in the U.S., New Jersey drivers were stunned last week by the defection of their No. 1 insurance company. In the largest withdrawal of an insurer from a state market, Allstate said it was dropping out of the property-and-casualty business in New Jersey. The insurer argued that excessive regulation had held down premiums despite the rising cost of paying claims. As a result, Allstate said, it lost $72 million on New Jersey auto policies last year.

The final crack-up came last spring when the New Jersey Supreme Court upheld a law that required...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!