Why aren't some car insurance companies available in New Jersey - Yahoo! Answers

Other Answers (3) Show: All Answers Oldest to Newest Newest to Oldest Rated Highest to Lowest by gbreadma... Member since: August 18, 2008 Total points: 6478 (Level 5) Add to My Contacts Block User Micro-regulation by the state. By law every driver in the state must be covered by insurance. NJ forced car insurance companies to take on high-risk drivers and severely limited their profit margins. Many companies for obvious reasons didn't agree with this practice and abandoned NJ.

Geico in the past also didn't insure Massachusetts drivers, but I don't know the background behind those reasons.
Source(s): http://query.nytimes.com/gst/fullpage.ht… 9 months ago 20% 1 Vote 0 Rating: Good Answer 0 Rating: Bad Answer Report Abuse by Jeff k Member since: October 14, 2008 Total points: 160 (Level 1) Add to My Contacts Block User I know that Geico is such a decent car insurance company. But if you'll gonna try to look for comparison sites for car insurance companies, you'll find out that there's a lot of reliable and cheapest car insurance who is just near. Source(s): http://www.autoinsuranceselect.com/state/new-jersey-auto-insurance.html 9 months ago 0% 0 Votes 0 Rating: Good Answer 0 Rating: Bad Answer Report Abuse by Brown Pit named Blue Member since: April 02, 2008 Total points: 4499 (Level 4) Add to My Contacts Block User Probably because NJ has a lot of crazy drivers and as soon as they get hit, they claim "neck and back."

9 months ago 0% 0 Votes 0 Rating: Good Answer 1 Rating: Bad Answer Report Abuse Open Questions in Insurance & Registration What do i need to get my license in california? Do people who drive often have trouble with other drivers? California Driving test Qs? how do you find out what type of car insurance someone has? Resolved Questions in Insurance & Registration What all do I need to get my license when I turn 16? How much will my auto insurance premium decrease when...? How do I get my drivers permit? Driving test today

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by Fred C Member since: September 19, 2006 Total points: 59851 (Level 7) Add to My Contacts Block User Best Answer - Chosen by Voters There are literally hundreds of insurance companies. An insurer needs to be licenced to sell insurance in each province, state, or territory it wishes to do business in. Many companies just don't have the financial wherewithal to cover all areas of Canada and the US. Truth be told, if every insurer sold in every area, many would go bankrupt because there are only so many policies that can be sold. A few large companies sell in most areas, some sell in individual states or provinces, some sell in blocks of states or provinces. You wouldn't want all insurers selling in any state you lived in. Could you imagine trying to sort through 500 or more quotes? There are no states with too few insurers to allow for decent competition, as well as a chance for each to make a profit. 9 months ago 40% 2 Votes 0 Rating: Good Answer 1 Rating: Bad Answer Report Abuse 0 stars - mark this as Interesting! Email Comment (0) Save Save to Yahoo! Bookmarks Add to My Yahoo! Add to Del.icio.us RSS

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