NJ Auto
Insurance
Gloucester 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.
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