New Jersey Assembly Bill A4562

New Jersey 2026-2027 Regular Session

• Introduced: 3/10/26
• Refer: 3/10/26

Caption

Requires automobile insurance carriers offer policies with 12-month term.

Summary

Assembly Bill 4562 requires any automobile insurer that offers a standard or basic automobile insurance policy in New Jersey to also provide consumers the option to buy that policy with a 12-month term. The bill does not mandate that all auto policies be 12 months long; rather, it adds a required option while preserving insurers’ ability to continue offering shorter or longer policy terms. The bill is framed as a consumer convenience and pricing measure. Its statement says 12-month policies may help insureds by locking in rates for a longer period, making renewal dates easier to track, and potentially preserving discounts for a longer time. The act would take effect 120 days after enactment.

Impact

The bill would supplement New Jersey’s automobile insurance law by imposing a new offering requirement on insurers that sell standard or basic auto policies. It would not change coverage mandates, rate-setting authority, or policy term limits generally, but it would require carriers to make a 12-month term available as an option to purchasers. The practical effect would be on auto insurers’ product offerings and on consumers shopping for personal auto insurance, especially those seeking longer rate stability and fewer renewals.

Sentiment

Based on the bill text alone, the measure appears generally favorable to consumers and neutral-to-positive toward insurers, since it preserves flexibility while adding an additional option. No committee transcripts or recorded votes were provided, so there is no documented legislative debate or opposition in the supplied materials. The stated rationale emphasizes convenience, predictability, and possible premium savings, suggesting the bill is intended as a modest consumer-protection and market-choice measure.

Contention

The main potential point of contention is whether requiring a 12-month option could affect insurer pricing, underwriting practices, or administrative costs, even though the bill expressly says insurers may still offer shorter or longer terms. Another possible issue is whether a mandated option meaningfully benefits all drivers or primarily those who prefer longer-term rate certainty. No specific objections, amendments, or opposing viewpoints are included in the provided record.