Two more auto insurance companies are pulling out of New Jersey, having sold their businesses to Palisades Insurance Co. Group.

Great American Spirit Insurance Co. and Twin City Fire Insurance Co. policyholders will be offered coverage from Palisades when their policies come up for renewal. Both Great American and Twin City have more than 24,000 customers each.

"We are very excited about these transactions," says Gerry Wilson, president and chief executive officer of Palisades. "Successfully negotiating consolidations transactions such as these comprised a large part of our 2002 business plan."

"Another one bites the dust. In this case, two," says spokesperson Ernie Landante of the Coalition for Auto Insurance Competition.

"Consumers will have fewer choices and it's a further decline in the benefits of market competition in New Jersey," Landante says.

The New Jersey Department of Banking and Insurance sees the consolidation differently. "Palisades is expanding its interest in New Jersey. It is investing in the marketplace, so this is a good story," says spokesperson Mary Cozzolino.

Palisades, which currently insures 65,000 New Jersey vehicles, operates two insurance companies, Palisades Safety and Insurance Association for safety-conscious drivers, and Palisades Insurance Co., for higher-risk drivers.

The announcement comes weeks before State Farm Indemnity Co. begins sending nonrenewal notices to 4,000 policyholders a month. Starting in December, it will drop 96,000 customers over a two-year period. It had threatened to leave the state entirely in 2005.