NJ Car Insurance Consumer Information.
NJ Car Insurance Consumer Information.
Article by D. Ammons Writer at NJCarInsurance Org
Auto insurance is legally required in New Jersey. As a New Jersey driver have many choices when it comes to purchasing auto insurance. Each choice that you make affects the coverage you receive and the amount you pay.
Auto insurance helps protect you and your family from losses resulting from motor vehicle accidents. It is required in New Jersey. If you drive without insurance, you are breaking the law!
Whether you are buying a new NJ car insurance policy or renewing your current policy, you will make many decisions about what coverage you need and how much you can pay in premium (the amount of money a company charges for insurance coverage). Some things to consider:
Understand Your Needs
Do you rent or own your own home?Do you have assets to protectincluding income from a job)? Willyour own health insurance coverauto accident injuries? How muchNJ car insurance coverage can you afford?These are some of the questions you should ask yourself before choosing a specific coverage plan.
Understand Your Options
Familiarize yourself with the words and phrases used in NJ car insurance policies. Review the different benefits of each coverage option.
Understand NJ Consumer Protections</b.
As a New Jersey auto insurance consumer, you have rights. You have the right to fair and equal treatment, and you have the right to get the information you need to make informed decisions.
<b.You can shop for auto insurance at any time
not just when your policy is up for renewal, and if you find abetter price, you can cancel your old policy and seek arefund of your unused premium. (There is no dollar penalty if you cancel your policy.)
You have the right to change your coverages and policy limits at any time, even if you are not near your renewal date. If you select options that save you money, you have a right to a refund of your unused premium within 60 days of the cancellation or notice ofcancellation, whichever is later.
What Affects the Cost of NJ Auto Insurance?
When you apply for auto insurance in New Jersey, Nj insurance companies consider a variety of factors to determine the risk you represent and the likelihood that you will experience an accident or loss. The company then groups you with policyholders with similar risk characteristics (i.e., tiering), and assigns a rate based on the driving and claims history of your risk group. Not all companies consider the same factors when determining your premium (the amount you pay for insurance coverage), but there are some common factors that impact rates:
Driving Record
If you (or a member of your household) have a driving record that includes motor vehicle violations, suspensions and/or at-fault accidents, the price you pay to obtain insurance might be higher. Insurance companies may consider you (or a member of your household) to be a high-risk driver and charge a higher rate than a driver with a “clean” record (free of accidents and violations). Each company has underwriting guidelines to determine what type and how many accidents and violations during a specific period constitute a high-risk driver. (Remember: Insurers assign insurance eligibility points for accidents and violations, and having nine or more may make it difficult to remain in the voluntary market. For NJ high risk auto insurance go to http://www.njpaip.com for rates and help obtaining a policy)
Your Vehicle Type
The make, model and value of your vehicle affects the cost of your auto insurance premium. Generally, an older vehicle will cost less to insure, while a high performance or luxury car will cost more. The cost to insure different makes and models of vehicles can vary among insurers, so be sure to check with several insurers to get the best price and coverage for your needs. Companies may offer discounts for vehicles with safety features, so check with your insurer or producer for details, especially when you are considering purchasing a vehicle.
Geographic Area, NJ County or City
Where you drive and keep your vehicle also influences your premium. The number of claims filed by policyholders in your territory will affect the rates charged by insurance companies. A like vehicle in Paterson, NJ will pay a higher rate than the same vehicle in Cape May, NJ for the same coverages. Urban areas usually pay alot more than rural areas.
Gender and Age
Statistics show that young adults (17-21) have a higher incidence of accidents, claims and moving violations (NJDMV-NJMVC ans Insurance Points); therefore, your gender and age will affect your rate.
Marital Status
Statistically, married couples tend to have a lower incidence of accidents and claims as well as lower amount of moving violations; therefore, they generally pay lower premiums than single people.
Vehicle Use
The distance you live from work or school will affect the cost of your insurance, as it determines your daily exposure to risk. NJ Insurers calculate your premium (costs) based on the average distance you drive on an annual (yearly) basis or how far (mile) you commute to work or school. Whether you use your vehicle for personal or business use will also impact your rate.
Policy ChangesChanges to your policy can also affect your premium. Such changes may include:
