INSURANCE
DEPARTMENT OF BANKING AND INSURANCE
DIVISION OF INSURANCE
Collision and Comprehensive Coverage Deductibles and Options
Proposed Amendment: N.J.A.C. 11:3-13.3
Authorized By:
Holly C. Bakke, Commissioner of Banking and Insurance
Authority:
N.J.S.A. 17:1-8.1, 17:1-15e and 17:29A-39; and Section 65 of P.L. 2003, c. 89
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
Proposal:
PRN 2003 - 278
Submit comments by September 19, 2003 to:
Douglas Wheeler, Assistant Commissioner
Legislative and Regulatory Affairs
Department of Banking and Insurance
20 West State Street
P.O. Box 325
Trenton, New Jersey 08625-0325
Fax: (609) 292 -0896
Email: Legsregs@dobi.state.nj.us
The agency proposal follows:
Summary
P. L. 2003, c. 89 (the “Act”) provides a well-balanced approach to addressing the
immediate automobile insurance availability crisis facing New Jersey consumers, insurers and
regulators. The Act includes many provisions intended to put downward pressure on rates. One
such provision is Section 65, which revises the collision and comprehensive coverage deductible
options that are currently available to New Jersey consumers. Pursuant to current law, each
insurer is required to offer a range of deductibles, up to at least $2,000, for private passenger
automobile collision and comprehensive coverage. The Act adds a new deductible option of
2
$750.00, as well as a new default deductible. Moreover, N.J.A.C 11:3-13.3(a)1 and 2 set forth
the minimum schedules of deductibles for private passenger automobile collision and
comprehensive coverage which each insurer shall offer.
The proposed amendments would have two main impacts. First, they would change the
default deductible from $500.00 to $750.00 for those new insureds who fail to make an
affirmative deductible selection on their application for initial auto insurance coverage. Second,
the amendment allows the Commissioner to adjust the maximum amount in the schedules of
deductibles for collision and comprehensive coverage