Buying New Jersey Car Insurance


state of New JerseyWith The Garden State continuously ranking among one of the highest states to purchase and maintain auto insurance in, it is important that motorists understand the importance of shopping around and comparing companies before buying a policy. Individuals should also make themselves aware of the various factors that affect the amount that they may end up paying for coverage.

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Shopping for NJ Auto Insurance

Year after year, motorists within the state are subject to some of the highest premiums in the nation. Carrying a valid New Jersey car insurance policy is the law and with this in mind, residents should take the time to comparison shop and understand how companies determine rates in order to keep coverage as affordable as possible.

There are many companies that are available to choose from; each of which will charge a different price for the same products and service. Conducting a quote comparison from various providers is probably the most effective way for an individual to locate the best deal for the service and coverage which suits their needs.

Before individuals begin shopping, they should determine the amount of protection that they are need of. This is important because the level and type of coverage that is looking to be purchased will affect the price of the premium; it is also important to be sure to compare auto insurance quotes on the same types of policies.

shopping cartFailure to compare rates based on the same coverage can result in inaccurate and ineffective comparisons due to the fact that one may be under the impression that they are getting good deal from a particular company, but have actually have been quoted for less protection.

When shopping for coverage consumers should be certain to inquire and take advantage of any discount that may be offered. Some of the more common discounts which are offered are as follows;
  • Multiple Vehicles - Many insurers will apply a discount for having more than one automobile on the same policy.
  • Vehicle Features - Having an automobile equipped with items such as anti-lock brakes, air bags, anti-theft devices, etc. may cause a reduction in premium.
  • Good Student - Many providers will issue discounts to young drivers who maintain a 3.0 ("B") grade point average or higher.
  • Driving Course - State law requires carrier to offer discounts to motorists after completion of a defensive driving course that is approved by the New Jersey Motor Vehicle Commission.

Factors that Affect the Price of New Jersey Car Insurance

The rates that companies charge are dependent on many items which providers will evaluate in order to determine the risk that an applicant poses and the likelihood that a potential policyholder will be involved in an accident or loss. Some of the most common factors used by insurers to determine premiums are as follows;
  • Driving Record - A driver with a "clean" driving history will most likely be charged less for coverage compared to motorists who have had multiple accidents and violations in the past.
  • Type of Vehicle - The year, make and model will affect the price that it will cost to insure it. A newer and more expensive automobile will be generally more costly to insure than an older model.
  • Garaging Address - Insurers analyze the number of claims filed in a particular geographic area and charge based on the likelihood that a claim will be filed in specific areas.
  • Gender - Males have been statistically shown to more involved in accidents and claims and will usually be charged more than females.
  • Age - Statistics show that motorists under the age of 25 have a higher incidence of accidents and claims which can raise their premiums.
  • Marital Status - From a statistical standpoint, married couples have a lower number of claims and will usually pay less than younger singles.
  • Credit History - Some companies will use a person's credit to determine the rate of an applicant.
  • Coverage - The more protection that is purchased the higher the amount a person can expect to pay in premium.
New Jersey flag buttonThe above mentioned are some of the more common factors used to determine premiums; additional items may include vehicle usage, annual mileage, distance from school or work and if the automobile is used for business purposes. It is due to all of these factors that consumers are encouraged to compare and shop around; although companies use similar aspects when determining rates, they base their particular pricing based on prior profits and losses. Therefore, the price of coverage for the same applicant can vary substantially will each company.