New Jersey insurance policies come in two main guises: basic or standard coverage. The basic coverage plan is typically meant for drivers without familial obligations and a multitude of assets and provides security accordingly. The state enforced insurance minimums for basic coverage policy holders are $10,000 in bodily injury liability; $5,000 in property damage liability; and $15,000 in something called Personal Injury Protection (commonly referred to as PIP in the insurance world). Drivers applying for basic coverage can (and are, in fact, encouraged both by state authorities and insurance agents) purchase ancillary insurance, including, but not limited to, collision, comprehensive, and uninsured driver insurance. Minimums for the standard coverage policy include: $15,000 in bodily injury liability for all accident victims; $30,000 in total liability; and $5,000 in property damage liability.
But before drivers in the Garden State gorge themselves on insurance coverage, consumers in New Jersey should be fully aware that rates in their state tend toward the expensive side. New Jersey insurance policies are some of the most expensive in the country. Why is this the case? The easiest answer is: poor driving by residents. Insurance companies cull together the costs of insuring a specific state’s drivers and subsequently divvy up that cost among the insured drivers. So, if rates in a particular state are high, this generally indicates the state’s drivers are to blame.
In New Jersey, after adding up the total cost of insuring drivers, insurance companies disseminate these costs on a percentage basis according to a myriad of factors. A consumer’s driving record is perhaps the single most influential piece of information employed in the determining of rates. Drivers with accidents, excessive and egregious traffic tickets, and/or DUIs find themselves shelling out hundreds extra each year for the privilege of a New Jersey insurance policy. Conversely, conservative and cautious drivers save truckloads annually. Other impacting factors include: age, make, and model of the car being insured; martial status; number of dependents (more specifically, the number of dependents that will possibly drive the automobile in question; and your age.)
Some of these determinants can be altered or improved over the years; some are simply unavoidable (like your age). What’s more important for consumers to consider, rather than trying to piece together the perfect insurance crib sheet, is that different companies weigh different factors differently. In other words: shop around; certain insurance providers aim to please select groups, of which you may be an unwitting member. By soliciting competing firms for different quotes, consumers immeasurably spike their chances at uncovering a great deal for their wheels. The Internet offers efficient and effective help to this effect—web-based insurance quote scout sites allow consumers the opportunity of filling out a single, uniform application which is subsequently sent to a variety of different insurance providers, who, in turn, directly contact consumers with offers. All of this generally takes one business day. Just think: by tomorrow, New Jersey insurance policies could be knocking down your doors of opportunity.
Smart shopping and utilizing the Internet’s fierce informational capabilities can sway these New Jersey insurance policies from pricey to reasonable with a minimal effort—which will leave you with plenty of money and time to actually earn your state’s moniker.
By Jean-Pierre Lacrampe