What is the NJ PLIGA Fee on Your Bill?

Michael B. May 25, 2012 14

What is the NJ PLIGA Fee on Your Bill?

Imagine that your colleague Mary has not yet switched her insurance coverage to Plymouth Rock Assurance, and her carrier goes bankrupt tomorrow. Through no fault of her own, she is left without the coverage she purchased.

The New Jersey Property-Liability Insurance Guaranty Association (NJ PLIGA) is Mary’s safety net in this situation. All car insurance companies in New Jersey are required by the state to be members of this association and collect funds for its operations. The NJ PLIGA fee on your bill supplies a pool of money to pay claims in the event an insurance company becomes insolvent.

14 Comments »

  1. BARBARA June 20, 2012 at 1:15 pm - Reply

    Is this just anither way for someone to get richer. Who retains control of money collected by this fee? and who gets the interest on above money. Sounds like another “GOT YOU” just an empty black hole with no one remembering what is was started for!!!

    How many insurance companies have been put out of business thus requiring a bailout?

  2. George June 20, 2012 at 2:30 pm - Reply

    I just want to know why? my Insurance premiums go up every year with NOT having One accident ??? Can someone tell me why?

    • Plymouth Rock June 22, 2012 at 3:39 pm - Reply

      George, thank you for your question. Insurance premiums are based on a wide variety of factors. If you are a policyholder with Plymouth Rock, please give us a call at 1.800.516.9242 to discuss your coverage options and make sure you are taking advantage of all the discounts available to you.
      You may also be interested in reading about a growing insurance fraud and medical abuse epidemic that has forced nearly all NJ insurance companies to increase rates over the last year and a half. Below are links to relevant posts:
      One Fender Bender Away from Identity Theft
      The Promise of Big Money
      Beware of “Runners”

  3. Mary June 20, 2012 at 3:12 pm - Reply

    Isn’t this duplicative of the “Uninsured/Underinsured”, motorist coverage already on insurance policies? What is this extra money doing?

    • Plymouth Rock June 22, 2012 at 3:42 pm - Reply

      Mary, thank you for your question. Uninsured/underinsured motorist coverage is a bit different than NJ PLIGA.
      Uninsured/underinsured coverage pays for property damage, lost wages and bodily injuries that the insured person and occupants of the insured vehicle sustain, if caused by a driver or owner of a vehicle who has no insurance (or does not have enough insurance) and is legally liable for an accident. The uninsured or underinsured liable driver receives no benefit from the victim’s uninsured/underinsured coverage.

      However, if the liable driver is uninsured due to his/her insurance company becoming insolvent, NJ PLIGA kicks in. NJ PLIGA is the liable driver’s safety net in this situation.

      It’s important to us that our policyholders fully understand their coverage options. If you’d like additional information, please don’t hesitate to call us at 1.800.516.9242.

  4. Steve June 21, 2012 at 6:04 am - Reply

    And better yet is why do we have to pay to bail those ins. Cos. Out

  5. Plymouth Rock June 22, 2012 at 3:37 pm - Reply

    Barbara, Steve, and “Aa,” thank you for your comments. We completely understand the skepticism given the plethora of news about corporate greed and corruption popping up every day.

    The New Jersey Property-Liability Insurance Guaranty Association is a private, non-profit, unincorporated legal entity established pursuant to the New Jersey Property-Liability Insurance Guaranty Association Act. You can learn more about it at http://www.njguaranty.org.

  6. toaster sandwich maker January 13, 2013 at 2:38 pm - Reply

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  7. ed April 11, 2013 at 10:34 am - Reply

    Did some research….lot of mumbo jumbo
    looks like this surcharge is nothing more than a payment on a insurance policy for the insurance companys, Which they of coarse refuse to pay and just cleverly decided to tack it on our bill as a SURCHARGE….and figured what the heck they pay it or they wont be insured ! they claim there were 71 companys that went insolvent, Wonder how many just moved out of state.
    In the mean time im paying $44.00 a year on that policy …..love it ,just love it….lol

  8. Steve January 10, 2014 at 11:08 am - Reply

    If you are a good driver without any traffic accident or violation and still your insurance premimum is going up every year then join the Geico. However they also collect the same PLIGA Fee but Geico seems to be good for the premium. i am with geico since last 8 years.

    • Manuel November 22, 2015 at 8:23 pm - Reply

      1. GEICO is not different. My car insurance keeps going up every year without me filing any claims or having any tickets or accidents. I am retired, 70 + and barely drive 5000 miles annually. It went up again $30.00 this year, in addition to PLIGA ($697.00 for 6 months). I am paying more money now for my 5 year-old Camry than when it was new. 2. My home insurance also went up, the same amount. Never filed any claim. PLIGA should be paid by the insurance companies.3. Government by the people, for the people? A joke.

  9. Ed March 28, 2015 at 11:39 am - Reply

    Thought I’d never say this – but I’m starting to really HATE NEW JERSEY – my once beloved home state. Every opportunity is taken by the government and it’s imps to dig deeper and deeper into the pockets of the citizens. It’s sickening and quite disgusting. Can’t wait until I’m able to move.

  10. Insured and hating it July 16, 2016 at 8:48 pm - Reply

    Not that it’s really your fault (Plymouth Rock), but your link to where we could really find out about the PLIGA (http://www.njguaranty.org/home/default.aspx) leads to a dead end “Server Error” page. Do you even follow your links or possibly update them? So much for being an educated consumer.

    • Michael B. July 19, 2016 at 10:23 am - Reply

      Hi there! Thanks for taking the time to comment and pointing out the bad link. Occasionally when outside websites do updates, their links change. I’ve updated the link and you can also find it here: http://www.njguaranty.org/Funds/pliga.aspx

      Michael Buck

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