>Trenton continues to wage war on New Jersey’s drivers
TRENTON, NJ — New Jersey is taking aim at residents who fraudulently register their vehicles or obtain auto insurance in other states.
The Assembly recently passed a measure that makes so-called reverse rate evasion a form of insurance fraud.
Under the practice, vehicle owners register and insure their vehicles in other states to get cheaper premiums, even though the Garden State is their principal residence or the insured vehicle is mostly kept in New Jersey.
Critics say this results in the loss of state revenues and causes higher premiums for those who properly register their vehicles. They also note that many out-of-state policies provide lesser coverage than what’s mandated under New Jersey law.
If the bill becomes law, it would make reverse rate evasion a fourth-degree crime, which means violators can be jailed for up to 18 months. Specific fines would be determined by a judge under the state’s Insurance Fraud Prevention Act, according to the text of the bill.
Read more: https://www.nypost.com/p/news/local/guardin_state_from_fraud_2DEzrYIXYu2x1TRDgz6dCP#ixzz0spuWVle8
