N.J. auto insurance rates still highest, but ...

The average Garden State resident paid 4 percent less in auto insurance premiums in 2007 than the previous year — and 9 percent less than the peak year of 2004, the National Association of Insurance Commissioners reported this week. Nationally, rates fell by only 5.6 percent between 2004 and 2007.

That's the good news. Despite the downward trend, New Jersey drivers continued to pay the highest premiums of any state in the nation — $1,103 per vehicle.

Part of New Jersey's decline in premiums is attributable to legislative reforms in 2003 that helped lure firms that wouldn't do business here. The state made changes to its assigned risk pool of drivers and allowed companies to offer bare-bones polices.

In 2002 alone, seven auto insurance companies bailed out of New Jersey, bringing the total number of companies that had fled the state in the previous decade to 25. The insurance rules made it impossible for some people to get insurance at all. For those who could, the limited competition resulted in escalating premiums.

Today, eight out of the top 10 largest firms write policies in New Jersey. Unfortunately, the policies aren't cheap. Only three other states had average per-vehicle premium costs in excess of $1,000 in 2007 — Louisiana, New York and Florida. The cheapest rates in the nation were in North Dakota, where the average premium was $511.

Several explanations are offered by auto insurers for why New Jersey has the highest rates: generous medical reimbursements, higher auto repair costs, a higher proportion of luxury cars and heavily congested roads.

Those elements aren't likely to change any time soon.

For now, the best thing to do to keep your premiums down is to shop around, explore the discounts offered by various insurers and keep your driving record clean.

New Economic Study Reveals $6.3 Billion Contribution to New York/New Jersey Region by Continental Airlines

Continental Airlines (NYSE: CAL) today released an economic impact study by NERA Economic Consulting (NERA) describing the airline’s impact on the New York/New Jersey region coinciding with Continental’s 30th anniversary of service to the area and its recent entry to Star Alliance. The study showed that in 2008, Continental’s operations contributed more than $6.3 billion in gross regional product to the region and an estimated 110,000 jobs amounting to more than $5.9 billion in personal income. As the leading carrier in New York, Continental offers more seats and serves more nonstop destinations from the New York area than any other carrier.

The report estimated that of the 110,000 jobs currently being contributed by Continental to the region, approximately 30 percent are in New York City, 12 percent in the rest of New York state, 31 percent in the Newark region and 27 percent in the rest of New Jersey.

"As significant as these results are, this study does not measure the full economic impact of Continental’s presence," said project director and senior vice president of NERA, Dr. David Harrison, Jr. "While the study measures aviation employment and passenger expenditures, including multiplier effects, it does not include other important aspects of Continental operations on the community. It is clear from the data that Continental’s presence makes the New York/New Jersey region a more attractive region for businesses to relocate or expand their operations due to the reduction in the cost of doing business associated with access to air travel."

Even excluding those substantial effects, the NERA analysis estimated that by 2030, Continental’s contribution would account for $11 billion in personal income and $12 billion in gross regional product, nearly double Continental’s contribution in 2008.

"On behalf of my more than 41,000 co-workers, we are pleased that Continental is making such a meaningful contribution in one of the most important regions for our company and our country," said Larry Kellner, Continental chairman and chief executive officer. "As the first member of the Star Alliance with a major hub in the New York City area, Continental will be connecting the region with 24 other carriers in a global alliance that offers more than 18,900 flights a day to 983 cities in 169 countries."

Continental commissioned NERA Economic Consulting (NERA) to conduct the study. NERA, one of the foremost global economic research organizations with extensive experience in transportation and regional economics, used a state-of-the-art computer model tailored to the local economy, as well as extensive data from Continental and outside sources, to develop an assessment of the airline’s current and future economic impacts on the New York/New Jersey region. The assessment includes the direct contributions made by Continental employees and passengers as well as the multiplier effects of increased spending on the regional economy. The study was performed by NERA, which has more than 600 staff members in eleven offices in North America as well as fourteen overseas offices. The result is one of the most complete and detailed studies ever completed concerning the contribution of an airline’s operations to a regional economy.

To view a full copy the NERA report, click here.


Background

As of March 2009, Continental and its regional partners served 146 nonstop destinations with 412 flights per day from Newark Liberty International Airport, making Continental Airlines the largest airline at the airport by both metrics. Together with its regional partners, Continental transported 70 percent of all revenue passengers at Newark in 2008. Continental also handled more than 120,000 tons of revenue freight at Newark in 2008, making it the largest freight handler among the airport’s passenger airlines. Continental has significant, though much smaller, operations at LaGuardia Airport (LaGuardia), where it ranked among the fifteen largest carriers (by passenger count) in 2008. From LaGuardia, Continental and its partners operated 16 flights per day as of March 2009.


Continental’s New York hub at Newark Liberty International Airport serves as a gateway to Continental’s international route system to Europe, Asia and Latin America. Continental’s hub at Newark Liberty currently provides daily or near-daily nonstop service to 26 European destinations, seven Canadian cities, eight Central American/Caribbean destinations, four cities in Mexico, plus Bogota, Sao Paulo, Beijing, Delhi, Hong Kong, Mumbai, Shanghai and Tokyo. Continental’s Newark Liberty service represents the only scheduled nonstop service from the New York City area to several important domestic and international destinations. Continental supplements its extensive Liberty operations with frequent nonstop service from LaGuardia to the airline’s hubs in Houston and Cleveland.

Continental Airlines is the world’s fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,400 daily departures throughout the Americas, Europe and Asia, serving 130 domestic and 132 international destinations. Continental is a member of Star Alliance, which provides access to more than 900 additional points in 169 countries via 24 other member airlines. With more than 41,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries approximately 63 million passengers per year.

Celebrating its 75th anniversary this year, Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the sixth consecutive year, FORTUNE magazine named Continental the No. 1 World’s Most Admired Airline on its 2009 list of World’s Most Admired Companies. For more company information, go to continental.com.

SOURCE Continental Airlines

Republican victories in Va., N.J. hinged on economic worries

Voters worried about jobs and the shaky economy helped drive Republican gubernatorial victories in Virginia and New Jersey, according to exit polls, adding political urgency to Democratic efforts to combat the nation's surging unemployment rate.

While top White House officials dismissed suggestions that Tuesday's election amounted to a referendum on President Obama, gleeful Republicans portrayed the outcome as a signal of growing discontent with the president's economic initiatives.

"Certainly the president has put forth policies that are different, controversial, but I think out of the mainstream of where America is," said Republican National Committee Chairman Michael S. Steele, who called the election a "checkpoint" on Obama's policies. "America doesn't want the federal government running its health care. America doesn't want the federal government buying its cars for it and telling it what cars to drive. America doesn't want the federal government running its banks."

With the nation's unemployment rate nearing 10 percent, Republicans Robert F. McDonnell of Virginia and Chris Christie of New Jersey both campaigned heavily on the issue of jobs. Voters in both states rated the economy as the top issue, even if it was not the dominant concern it was a year ago. But in a major shift, voters who said they were "very worried" about the economy broke decidedly toward the Republican candidates this year after tilting heavily toward Obama in 2008.

That reversal accompanies a sharp increase in joblessness in each state over the past year. Unemployment in New Jersey stood at 9.8 percent in September, up four percentage points over the previous September. In Virginia, meanwhile, unemployment stood at 6.7 percent in September, up from 4.1 percent a year earlier.

"A year ago, the economy was bad, Bush was in charge, and if you wanted to change the economy you voted for Obama and against McCain," said Mark Mellman, a Democratic strategist. "In this case, the incumbent officeholders are Democrats. And if the economy is bad, there is a certain tendency to vote against those in power."

Christina Hoag, 58, who owns a catering business with about 25 employees in McLean, said that she hoped a Republican victory would slow government growth and block a health-care plan that she believes would hinder future economic growth. She said that with her vote for McDonnell and other Republicans, she wanted to send the message to Democrats that they do not have a mandate to remake the economy.

"Small businesses can't absorb what the government thinks we can absorb, especially in today's economy," she said at her polling place. "There's anger right now within ourselves, and I think most of that comes from uncertainty and fear."

Despite the shift in sentiment by voters concerned about the economy, White House aides signaled no changes in their approach to the president's ambitious initiatives to overhaul the health-care system, limit greenhouse-gas emissions and stoke job creation.

White House officials said they knew long before the election that the economy was on voters' minds. "I don't think the president needed an election or exit poll to come to that conclusion," said Robert Gibbs, Obama's press secretary.

Employers have slashed 8 million jobs since the recession began in December 2007. While the rate of job losses has slowed substantially in the wake of Obama's economic initiatives and the overall economy has begun to expand again after a year of shrinking, economists have said it could be many months before the jobless rate begins to decline

The gloomy employment picture has pushed the administration and its congressional allies to highlight the job-creation aspects of the $787 billion economic stimulus plan enacted in February, while economic advisers weigh new ideas for creating jobs.

Meanwhile, the President's Economic Recovery Advisory Board has recommended ramping up federal efforts to weatherize homes and public buildings. It also urged establishment of an infrastructure bank, which would allow the federal government to sell bonds for large infrastructure projects, an idea Obama advocated during the presidential campaign.

The Senate on Wednesday approved a bill that would extend unemployment benefits, the $8,000 tax credit for first-time home buyers and a package of small-business tax cuts. The House is expected to follow suit shortly.

"The president is governing in historically challenging economic times, and the economy will be a top issue in the 2010 elections," said Dan Pfeiffer, the White House deputy communications director. "But we knew that before Tuesday."