New Jersey Assembly Bill A2592

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Revises law concerning physical damage inspection of vehicle by automobile insurer.

Impact

The bill proposes that if an insured individual acquires a new vehicle and requests physical damage coverage, this coverage will not take effect until a proper inspection is conducted. However, the bill allows certain exceptions where inspections may be waived, such as when the vehicle is purchased from a dealership or is over seven model years old. This amendment could potentially reduce the burden on policyholders by allowing more flexibility during the vehicle acquisition process while still maintaining safeguards to protect against fraud.

Summary

Assembly Bill A2592 aims to revise existing automobile insurance laws in New Jersey, specifically focusing on the physical damage inspection requirement by automobile insurers. The bill establishes a standardized approach to waivers applicable to all insurers that provide physical damage coverage. These waivers are intended to address inconsistencies that can be exploited for insurance fraud, which has been a significant issue within the industry. The goal is to streamline the inspection process, thereby discouraging fraudulent practices while ensuring that genuine cases are still thoroughly evaluated.

Contention

Despite its intended benefits, there could be contention surrounding the implementation of self-inspections by policyholders, which the bill proposes to allow through an authorized mobile application. Critics may argue that such self-inspections could lead to lax regulations and an increased risk of undetected fraud. Additionally, while the standardized waivers aim to streamline the inspection process, insurance companies might face pushback regarding their obligations to perform thorough evaluations and maintain consistent practices across varied cases. This tension between operational efficiency and regulatory rigor is likely to be a focal point in discussions and potential amendments to the bill.