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Liberty Mutual Joins State Farm and Settles New Jersey Car Insurance Rate FIGHT

TRENTON, N.J., Nov 20 Reuters reported that Liberty Mutual Fire Co. and an affiliate have reached a settlement with New Jersey regulators allowing it to raise car insurance rates slightly after more than a year of legal wrangling.

They reported that the New Jersey Department of Banking and Insurance, which has been scrapping with car insurers over the rates they charge for the past few years, said Liberty Mutual agreed to an overall 6 percent rate rise,

less than the 20 percent increase the company sought when it filed the rate-hike request last year.

Affiliate Liberty Insurance agreed to an 8.9 percent rise, less than the 25 percent rise it had asked for, the Department added.

The settlement comes as arguments continue to rage between New Jersey regulators, who are trying to limit car insurance prices, and insurers who say that they are being forced to take big losses as rates are held down.

State Farm, the No. 1 U.S. car and home insurer, struck a similar compromise settlement on rate hikes earlier this month, but still says it plans to exit the state's car insurance market.

American International Group Inc. also plans to leave the New Jersey car insurance market.

WHO WILL BE LEFT TO SELL INSURANCE TO GARDEN STATE CAR OWNERS?