NJ
Auto Insurance
Essex County
An informational
guide on NJ Assigned Risk and NJ Preferred
Risk Automobile Insurance.
Where
you live or, more precisely, where you
keep your auto in NJ at night has a
bearing on your chances of having an
accident or becoming a victim of theft
or vandalism. That's why a vehicle owner
in
Newark NJ, pays a higher rate than
the owner of an identical vehicle in
Vineland NJ.
Other
factors affecting insurance
territory rates include time and
efficiency of police response and law
enforcement, local road and traffic
conditions and the quality of local
medical services. Insurers even factor
in the litigation rates in a given area,
how many lawsuits are filed, go to trial,
are settled out of court, and for how
much money.
Why are rates different
for different cars, even if the cars
cost the same?
Vehicles
are also grouped into categories according
to their chances of being damaged, vandalized
or stolen.
Insurance companies generally consider
the size and type of car as well as
the value and the cost of repairs which
vary greatly, even on cars that cost
about the same amount. Therefore, it
is assumed that a new sport utility
vehicle is expected to hold up better
in an accident than a sleek sports car
or a sub-compact car.
That
is why you should research insurance
coverage before you buy your car. It
helps you to understand the actual cost
and indicates those vehicles with good
safety records. Your NJ insurance company
will ultimately reward you with lower
premiums for putting safety first.
What is no-fault insurance?
-
No-fault
insurance is a system adopted in
some states that essentially bypasses
the conventional legal procedure
which finds fault in an accident.
This is the procedure by which you
hire a attorney, file suit and possibly
go to court to prove the accident
was the other guy's fault. No-fault
simply does away with the concept
of one party or the other being
at fault--no lawyers, no court,
no judge, no jury, no lengthy lawsuits
against the other party. This is
considered beneficial to all taxpayers,
because it eliminates costly legal
proceedings that the state must
manage, and to insurance policyholders,
because it helps keep rates down.
If
you are insured in a no-fault state
and have an accident, you do not have
to go after the other driver. You contact
your own insurer and file a claim. Your
own insurance policy guarantees you
immediate compensation for damages,
medical expenses, lost wages, essential
services, rental car arrangements etc.
(If these coverages are included)
The
type and range of no-fault car insurance
coverage varies from state to state.
What defines the limitations of no-fault
policies can differ in two important
areas:
- Threshold--The type of
damage or injury or the cost of
repair or recovery that triggers
the need for legal action.
- Mandated--Benefit Level
The package of benefits (medical,
wage loss, replacement services
and other expenses) your state requires
you to carry.
No. Some states, while not mandating
auto insurance, have what is known as
financial responsibility laws that require
all drivers to be able to pay for any
damage or injury they may cause. However,
carrying liability insurance is still
the best and most affordable way for
you to meet your state's financial responsibility
requirements once you know what they
are.
UM and UIM policies are offered by law
in all states, including no fault states.
In fact, some states require all motorists
to carry this coverage in order to gain
protection from inadequate insurance
coverage of other drivers that may not
carry enough or higher limits as the
majority does; i.e., 100-300-50,000.
First, call the
police to the scene to be sure all
pertinent information is properly recorded.
Your nerves will be shaken right after
an
accident, and it helps to have a
calm and knowledgeable person walking
you through the necessary details.
Then,
contact your policy holder services
or claims number usually on you ID Card
immediately and ask about filing a claim.
If you followed all the recommended
guidelines and procedures when you bought
your policy, you should be covered within
the benefits and or limitations of that
policy. Remember, your car insurance
policy is designed to protect you and
anyone in your vehicle.
If the cost of your physical damages
or personal injuries exceed the amount
your policy will pay for, it may be
time to take legal action against the
other party. Even if you have no-fault
insurance, sometimes the only way to
be compensated is to place blame and
responsibility where it belongs. That
is why it is best to get a police report
documenting the incident and any witnesses
statement while it is fresh in their
minds. This will preserve that moment
in time and remove any room for doubt
later in the legal process.
It
is better to have the police report
and not really need it, than it is to
need one for court and not have one
because it would have taken another
thirty minutes to an hour extra at the
incident scene.
Technically,
in most states your insurer can cancel
your policy only if:
- you fail to pay your premium;
- you lose your driver's license;
- you are guilty of material misrepresentation
during the application process i.e.,
you fail to notify your insurer
of a recorded violation, such as
a drunken driving, or possession
of drugs or any illegal activity
offense; or
- you fail to report a substantial
change of risk, such as buying a
new high performance sports car
to replace an old high mileage family
sedan.
However,
your insurer may choose not to renew
your policy for a variety of reasons.
Do you have a bad driving record? Have
you received a lot of speeding tickets?
Have you ever been caught
driving drunk? Not only are these
scenarios considered unsafe and illegal,
they are justifiable cause for your
insurer to label you a bad risk and
refuse to renew your policy. Some underwriters
may feel compelled to cancel policies
after only one accident. This does not
apply to Individual States High Risk
Insurance Pool policies.
Where
do you
live? Has the neighborhood changed
in the last few years? Have the accident
or crime rates risen noticeably? As
regions are reassessed periodically,
their status could change and you could
suddenly find yourself living in a higher
risk area, where your insurer's rates
may not be adequate to cover losses.
Even
"good" drivers can find themselves in
the position of being dropped by their
current carrier. Reasons range from
a couple of moving violations, or multiple
accidents, or other serious violations
that make you a high risk to situations
outside your control, such as when insurers
in your state are suffering severe business
losses.
That
is why it is important to note that
if you are licensed to drive, by law,
you are eligible for insurance. However,
your options for new coverage may be
limited. Each state has created and
regulates a market of last resort for
those who cannot otherwise obtain coverage.
These groups have various names, depending
on the state you live in, such as
assigned risk automobile insurance
plans or the residual market, or the
State high risk pool.
Regardless
of the reason you were dropped or cancelled
by your insurer, you need to act immediately
to get another policy. Under no circumstance
should you drive your vehicle without
knowing one hundred percent that you
have current insurance. If you do find
yourself in the assigned risk residual
market pool, the price may be higher
but it may be your only alternative
in maintaining your freedom to drive.
The
most obvious way to maintain your low
risk status is to keep a clean driving
record. If you've been in an accident
or two, consider taking a defensive
driving course.
Also, look into purchasing special safety
and security features for your car,
such as anti-lock brakes and an alarm
system, or try OnStar. Your ARAIP-NJ
PAIP insurance producer can give you
further tips on how to convince your
insurer you're a safe driver.
NJ
Insurers often discount their rates
in order to encourage good driving practices
and the use of safety and security precautions.
Depending on the insurance company,
you can often lower your rates from
5 to 55 percent.
Sometimes the investment you make in
your vehicle is worth the discount,
and sometimes it's simply worth some
peace of mind. For example, the purchase
of anti-lock brakes merits a discount
from nearly every insurer, but the discount
probably will not pay for the brakes
which cost several hundred dollars during
the normal life of your vehicle. Anti-lock
brakes are touted, nonetheless, as a
life-saving feature and deserves serious
consideration when safety is a top priority.
Insurers generally offer discounts for:
- Safety Features Anti-lock
brakes, air bags and passive restraint
systems i.e., automatic seat belts.
- Defensive Driving Clean
violation record, driver's education
courses for teenagers and defensive
driving or accident prevention courses
for adults insurance discounts for
the latter are required in some
states.
- Security Systems Alarms,
electronic locks, VIN etching and
automotive disabling devices.
- Changing The Driving Habits
Try commuting by
public transit, using a company
vehicle for work-related travel
and car-pooling.
- Formal Agreements Not to
Drink and Drive The availability
of a discount for signing such an
agreement varies among insurers
and states, however is a powerful
idea that works.
- Buying Home Owners and Auto
Policies from the Same Company
If you own a home and an automobile
and you are insured by two different
companies, check into the cost of
carrying both policies by one insurer.
This will always offer you the cheapest
buy, so put it in your corner when
shopping for rates
-
You
can also lower your insurance rates
by requesting higher deductibles,
which is the amount of money you
pay out of pocket before you make
a claim. Increasing your deductibles
on collision and comprehensive coverage
from $250 to $500, or even $500
to $750 will bring your rates down.
Moreover, you may not need collision
and comprehensive coverage if you
drive an older car. Ask your producer
which discounts are available to
you.
How does adding drivers
to my policy affect my rates?
The
more people you allow to drive your
vehicle on a regular basis, the greater
the chances of your vehicle being in
an accident. Teenagers are especially
expensive to insure because they are
the least experienced drivers.
A driver's-ed course can help ease the
burden of insurance costs since it teaches
your teenager defensive driving techniques.
If your child's high school does not
offer drivers education, try to find
one offered by another school or a private
firm in the area. After all, the cost
of driver's-ed could be cheaper than
the extra cost of your insurance. Many
insurers offer "good student" discounts
as well.
An adult's driving experience can also
affect your rates significantly. Don't
assume that every adult you know has
been driving since age 17 or 18 or is
a competent driver with a clean driving
or insurance record. Again, taking a
defensive driving course is a good way
for adults to prove they are also responsible
drivers, thus lowering their risk and
their insurance premium rates.
Essex County is among
the most diverse counties
in both New Jersey and
the country. The county
is home to immigrants
from hundreds of different
nations, and American
natives of all ethnic
backgrounds and cultures.
The county is one of
the most
Italian
counties in America,
with nearly 50% or over
of residents in several
towns of the
West Essex
area and in the "Pasta
Triangle" (Bloomfield,
Belleville,
and
Nutley)
area being of Italian
descent. Though, recently,
the "Pasta Triangle"
is seeing increased
Italian emigration towards
the county's western
towns such as
West Caldwell,
Fairfield,
and
Verona;
meanwhile, the "Pasta
Triangle" region is
seeing diverse racial
immigration from neighboring
Newark and the Oranges,
and an increase of the
Asian-American
population. However,
this emigration has
mostly affected the
southern portions of
Bloomfield
and
Belleville,
with the more suburban
areas of
Nutley
and northern
Bloomfield
still traditional, functional
Italian neighborhoods.
The county also has
one of the highest percentages
of both
blacks
and
Hispanics
in the nation, with
a growing
Asian
population as well.
Though a majority of
the county that practices
religion is
Christian,
the county is also among
the most
Jewish
places in the nation
with 76,200 Jewish residents
according to the 2002
results of the National
Jewish Population Survey.[1]
Most are concentrated
in the SW Essex towns
of
Short Hills,
Millburn,
South Orange,
West Orange,
Maplewood,
and especially
Livingston,
where the Jewish population
is 12,600 or about 46%
of the township's population.
Along with the other
five or six counties
immediately surrounding
New York City,
Essex County is the
main reason why New
Jersey is the most ethnically,
culturally, and religiously
diverse state in the
country.
As of the
census2
of 2000, there were
793,633 people, 283,736
households, and 193,507
families residing in
the county. The
population density
was 2,427/km? (6,285/mi?).
There were 301,011 housing
units at an average
density of 920/km? (2,384/mi?).
The racial makeup of
the county was 44.46%
White,
41.24%
Black
or
African American,
0.23%
Native American,
3.71%
Asian,
0.05%
Pacific Islander,
6.88% from
other races,
and 3.42% from two or
more races. 15.42% of
the population were
Hispanic
or
Latino
of any race.
There were 283,736 households
out of which 33.80%
had children under the
age of 18 living with
them, 42.30% were
married couples
living together, 20.40%
had a female householder
with no husband present,
and 31.80% were non-families.
26.70% of all households
were made up of individuals
and 9.60% had someone
living alone who was
65 years of age or older.
The average household
size was 2.72 and the
average family size
was 3.30.
In the county the population
was spread out with
26.10% under the age
of 18, 9.40% from 18
to 24, 31.10% from 25
to 44, 21.50% from 45
to 64, and 11.90% who
were 65 years of age
or older. The median
age was 35 years. For
every 100 females there
were 90.70 males. For
every 100 females age
18 and over, there were
86.40 males.
The median income for
a household in the county
was $44,944, and the
median income for a
family was $54,818.
Males had a median income
of $41,374 versus $32,052
for females. The
per capita income
for the county was $24,943.
15.60% of the population
and 12.80% of families
were below the
poverty line.
20.50% of those under
the age of 18 and 12.20%
of those 65 and older
were living below the
poverty line.
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1: Other Party:
Auto Insurance
Bodily Injury (BI)
Liability and Property
Damage (PD) coverage
is Legally required
in most states today.
(BI & PD) Most people
understand that
they need BI & PD,
but they have no
idea how to determine
how much coverage
they need.
Try this simple
question: What if
your car was involved
in an auto accident
tonight where heaven
forbid, someone
else was injured
or killed? Remember,
everything you own
is in the back seat
of the car with
you and is at risk
in a lawsuit! So,
what do you think
their family would
sue you for? $15,000?
$25,000? $100,000
or even maybe a
Million dollars!
Where would you
get the money to
pay them?
Perhaps the Equity
in your Home would
help? How about
your Savings and/or
Investments? You
could even have
up to 25% of your
wages attached to
pay the award in
most states! Are
you prepared to
sacrifice everything
you own to pay an
award due to this
accident? If not,
read on for how
to choose the auto
insurance coverage
you need.
2: You and Your
Family:
Now let?s turn
the above accident
around. For some
unfortunate reason,
you or a loved one
is the one who is
injured or killed
in an auto accident.
Where would you
get the money if
the person who hit
you did not have
auto insurance or
not enough auto
insurance? Medical
bills can be covered
if you have
health insurance. But health insurance doesn?t cover loss of life, pain &
suffering or permanent
disability.
Maybe you have
a
life insurance
policy through your
employer or your
own individual life
policy. Is the benefit
amount sufficient
to cover your family
if your loved one
is killed? But even
if you have life
insurance, what
pays for the misery,
the pain & suffering,
maybe the fact you
or a loved one can't
walk or use their
arms again?
You might have
a disability insurance
policy through your
work if you?re lucky
or had good financial
advice. But disability
insurance doesn?t
pay for loss of
life, pain & suffering,
permanent loss of
your legs, arm or
hand.
The only coverage
that pays for these
things is a part
of an auto insurance
policy known as
Un/Under-insured
motorist coverage.
You can only buy
as much coverage
here as you have
in Liability coverage.
Your auto insurance
agent should be
able to help you
determine the exact
amount you need.
3: Your Car
Comprehensive
and Collision Coverage
are the third part
of an auto insurance
policy and are sometimes
referred to as ?Full
coverage.? Basically
the difference is
this: If you run
into the tree you
are covered by Collision
coverage. If the
tree runs into you
(hypothetically
of course), then
you are covered
by comprehensive
coverage. Comprehensive
also covers broken
windshields, fire,
theft and vandalism.
The higher deductible
(risk) you take
here, the lower
the premium. Use
the savings here
to purchase higher
limits in the coverages
that protect your
assets and your
family.
The bottom line
to determining proper
auto insurance coverage
is, of course, the
money available
in your household
budget. An excellent
place to start in
determining the
proper auto insurance
coverage for your
family is to meet
with your local
auto insurance agent.
Most cut-rate
companies concern
themselves with
one thing only:
Price. Tell them
what coverage you
have and they?ll
see if they can
give you the same
coverage for less.
You become the insurance
professional. If
this is the only
need you have then
that is ok. If not,
you need to seek
the advice of a
professional to
help you determine
the proper amount
of coverage you
need and how best
to accomplish it.
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