N.J. Admin. Code § 11:3-39.4

Current through Register Vol. 56, No. 21, November 4, 2024

Section 11:3-39.4 - Reductions in rates for anti-theft and vehicle recovery devices

(a) Every insurer writing automobile physical damage insurance shall provide a reduction in the base rates of its comprehensive and fire and theft coverages, if different, for all private passenger automobiles equipped with one or more anti-theft or vehicle recovery devices, as described at 11:3-39.5. The reductions in the base rates shall be as follows:

1. At least five percent for devices which qualify as Category I anti-theft devices;

2. At least 10 percent for devices which qualify as Category II anti-theft devices;

3. At least 15 percent for devices which qualify as Category III anti-theft or vehicle recovery devices; and

4. At least 20 percent for devices which qualify as Category IV anti-theft or vehicle recovery devices.

(b) Insurers are not required to provide greater or additional reductions in the base rates of the comprehensive and fire and theft coverages when a private passenger automobile is equipped with more than one qualified anti-theft or vehicle recovery devices, except as follows:

1. The greater category reduction shall apply when a private passenger automobile is equipped with two or more anti-theft devices qualifying from two or more categories.

2. A private passenger automobile equipped with a Category III anti-theft or vehicle recovery device and a Category IV anti-theft or vehicle recovery device in combination shall receive a reduction of at least 25 percent, (b)1 above notwithstanding.

(c) An insurer may require reasonable proof that a private passenger vehicle is equipped with or has been installed with a device which qualifies as a Category I, II, III, or IV anti-theft or vehicle recovery device, or a combination of such categories, before providing any reduction in the base rates for comprehensive and fire and theft coverages for that private passenger automobile.

1. Reasonable proof shall include, but not be limited to, an inspection for the issuance or renewal of physical damage coverages, as set forth at N.J.A.C. 11:3-36.

2. Insurers shall not refuse to provide a reduction for a private passenger automobile in which a qualifying anti-theft or vehicle recovery device has been installed solely on the grounds that the device was installed by the owner of the private passenger automobile.

(d) Insurers may elect not to provide a reduction for a private passenger automobile in which an anti-theft or vehicle recovery device has been installed for a period of up to 24 months following installation of the device, if the device is provided to the insured by the insurer without charge or at a below retail market price, where the reduction in price is equivalent to the reduced premium charges which would otherwise apply.

(e) If an insurer provides an insured with an anti-theft or vehicle recovery device pursuant to (d) above, and the insured terminates the automobile insurance policy, or elects not to renew such insurance with the insurer, prior to the end of the 24 month period, the insurer may demand payment for the cost of the anti-theft or vehicle recovery device provided.

N.J. Admin. Code § 11:3-39.4

Notice of Receipt of Petition for Rulemaking: Reductions in Premium Charges for Private Passenger Automobiles Equipped with Anti-Theft, Vehicle Recovery and Safety Devices.
See: 24 New Jersey Register 305(a).
Notice of Action on Petition for Rulemaking
See: 24 New Jersey Register 658(a).