Alex Daniel, general counsel at the New Jersey Civil Justice Institute, said that legal advertising, inflated claims, and fraud are contributing to rising auto insurance costs in the state. He expressed this view in an op-ed, emphasizing that lawmakers need to intervene before affordability “collapses again.”
“Many drivers now see legal action as the first step after a crash,” said Daniel, Vice President and General Counsel. “Fraudulent practices like staged accidents, exaggerated medical treatments and billing manipulation force insurers to pay more than necessary. The outsize cost of auto insurance is forcing [households] to make difficult choices just to remain legally on the road. Only by acting decisively can the state protect affordability.”
According to industry experts, New Jersey’s auto insurance market is facing renewed strain due to inflated medical claims, prolonged legal disputes, and increasing fraud. These factors are reportedly driving up premiums and threatening market stability. Insurers say current trends resemble conditions that preceded past crises.
As of 2024, Bankrate reported that the average cost of full coverage auto insurance in New Jersey is $2,240 per year, significantly higher than the national average of $2,014. This positions New Jersey as one of the most expensive states for car insurance. Rising legal and claim costs continue to pressure premiums.
In 2023, legal services advertising reported that New Jersey’s media markets totaled over $105 million in spending, with more than 642,000 ads aired. The New York and Philadelphia markets, which cover most of the state, ranked among the top five nationally for legal ad volume. This level of exposure contributes to more frequent and prolonged litigation, which drives up claim costs and insurance premiums.
Daniel serves as vice president and general counsel at the New Jersey Civil Justice Institute.
