Nearly 300,000 customers of Allstate New Jersey Insurance Co. will see an 8.9% increase in their auto coverage rates.

New Jersey Insurance Commissioner Steven Goldman approved the rate increase, which goes into effect immediately and applies to renewals, according to The Trentonian.

The increase is the largest since state laws were changed six years ago when auto insurance reform was introduced to “contain” auto insurance costs in New Jersey, the report said. Average yearly premiums of $1,200 in the state are the highest in the nation.

The increase means an average $100 to $150 more per year for full coverage.

Originally, Allstate sought a 15.4% increase, The Trentonian reported, but that increase was deemed “excessive” by both Goldman and the state’s public advocate. The insurer filed for the increase in January, claiming it needed higher rates due to increased filing of bodily injury claims and rising medical costs.

The increase granted applies mostly to the hospital and medical costs under the personal injury protection (PIP) coverage, according to the report. Collision and comprehensive coverage rates would be minimal.