New Jersey auto insurance companies think that health-care claims are too high and they have to raise their rates in order to be able to cover them. State administration has already approved the increase of premiums for nine providers among which are Progressive, Geico and Travelers Auto Insurance.

In the last few years the rates were decreasing: Geico dropped rates by 4 percent in 2007, Palisades Safety and Insurance Association made them lower by 4.4 percent in 2006. Due to high costs of medical claims the rates of the companies have been increased by 2.9 to 7 percent this year.

Allstate wants to go further than others and hike the prices by 15.4%. Their request has not been approved yet, but it is hard to imagine somebody will want to go for such high insurance. So far state Department of Banking gave Allstate a permission to raise premiums by 8.9 percent which will become effective on July 16.

All new auto insurance prices start working for new customers from July and those who already have their vehicles insured will face the new rates when their policies will have to be renewed.