• 
• NJ Auto Insurance
• Rates

New Jersey Auto Insurance Rates

How Different Factors Affect Your New Jersey Insurance Rate

There are a number of factors that new Jersey auto insurance companies may take into consideration when determining your auto rate. You’ll want to know what the main factors are because you have some control of some of them and you may also qualify for certain discounts depending on the insurance company from whom you purchase a policy.

The following information is provided from the State of New Jersey Department of Banking & Insurance.

Factors That May Affect Your Insurance Rating:

• 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.

• Type of Vehicle:

  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 for details, especially
  when you are considering purchasing a vehicle.

• Geographic Area:

  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.

• Gender and Age:

  Statistics show that males and young adults have a higher
  incidence of accidents and claims; therefore, your gender
  and age can affect your rate.

• Marital Status:

  Statistically, young married couples tend to have a lower
  incidence of accidents and claims; therefore, they generally
  pay lower premiums than single people.

• Vehicle Use:

  The distance you live from work or school may affect
  the cost of your insurance, as it determines your daily
  exposure to risk. Insurers will calculate your premium
  based on the average distance you drive on an annual
  basis or how far you commute to work or school. Whether
  you use your vehicle for personal or business use may
  also impact your rate.

• Policy Changes:

  Changes to your policy can also affect your premium.
  Such changes may include:

  • Adjusting your coverage
  • Changing your deductibles
  • Moving to a new area (territory)
  • Adding or removing a vehicle from your policy
  • Adding a new driver

  Any time period in which you had a vehicle that was
  required to be insured but did not have auto insurance
  can affect your premium as well. By law, any vehicle
  registered in the state must have insurance. If your car is
  off the road or not operational and you let your insurance
  lapse, it is important to surrender your license plates to
  the New Jersey Motor Vehicle Commission in order not
  to be required to have insurance coverage in place.

• Insurance Score

  Some, but not all, insurers in New Jersey will use an
  insurance score based on your credit history as one of the
  factors in determining risk.