New legislation, however, pin-pointed at fraudulent insurance practices (for instance: claiming your car was stolen while you stash it at your brother’s house) have reinvigorated the auto insurance industry in New Jersey. But, securing low auto insurance quotes still hinge on some determining factors. Here’s a peek:
In New Jersey, insured (and therefore legal) drivers choose between two modes of auto insurance coverage: basic or standard. Intended for those who would ordinarily forgo insurance, basic coverage sets the minimum coverage limits at $10,000 in liability protection for bodily injury, $5,000 in property damage liability, and $15,000 in Personal Injury Protection (commonly referred to as PIP). Consumers cannot purchase insurance for less than these stipulated amounts.
The standard coverage limits (traditionally employed by drivers with families) enjoy minimums of 15/30/5—$15,000 in bodily injury liability, $5,000 in property damage liability, and $30,000 total. PIP is additionally required in the state of New Jersey.
The specifics just enumerated for these two policies are, of course, the bare minimum. Drivers can certainly purchase higher liability amounts (which is a capital idea if you have a tremendous number of assets and personal wealth), as well as collision and comprehensive (theft, fire, etc.) coverage. But, you should definitely be aware that an increase in coverage consequently means an increase in auto insurance quotes and overall costs.
What other factors impact auto insurance quotes? A consumer’s previous driving record is perhaps the heaviest of determinants in the eyes of auto insurance agents. Akin to your credit rating when applying for a home mortgage loan, your driving record details whether or not you are a safe investment. Accidents (if at fault), gross numbers of speeding tickets, and DUIs hike rates immeasurably, because insurance agents view you as a loose cannon behind the wheel—someone who takes unnecessary chances and therefore should pay unnecessary fees.
In New Jersey, auto insurance suppliers combine the costs on covering New Jersey’s drivers in a lump sum, and subsequently dole it out on a percentage basis, in the guise of monthly premiums. For instance, if it costs 350 million to insure New Jersey’s drivers annually, New Jersey drivers will split up those costs as figured by insurance providers. Those consumers with poor driving records or DUIs will pay a higher percentage, but, in the end, the pool of insured drivers will cover the costs of legal settlements, property damages and medical expenses. In essence, what this means is: no matter how well you’ve driven over the past decade, auto insurance quotes in New Jersey will rise if the state, as a whole, suffered a historic number of accidents.
To quickly summarize: Drivers control some facets of auto insurance rates and quotes (speeding tickets, previous accidents, and general driving misconduct), but some things are beyond the individual driver’s control (the state-wide cost of insuring drivers). The thing to remember is: Not all insurance companies compute rates and quotes the same way, which means that by soliciting quotes from different auto insurance suppliers, you stand a good chance at uncovering some great rates. Be sure to use Internet insurance quote scouts which allow consumers the option of filling out a general application which is subsequently shipped to several insurance providers, who then directly contact consumers with rates—all within a business day or so. Finding an auto insurance supplier is one time when speeding is okay.
By Jean-Pierre Lacrampe