Talk to an agent: (201) 918-3627
Press play below to listen to our audio commercial:

How Does Auto Insurance Work and Its Premium Can Be Affected In New Jersey

While car owners have almost no control over the escalating fuel prices, they have control on how much they spend on auto insurance in New Jersey. Low car insurance rate in New Jersey is not a myth but a reality if you understand how the system works and what to do to get the lowest rates.  The tips below are from the NAIC – National Association of Insurance Commissioners. The better you understand their policy the better your chances to cut costs in your car insurance coverage.

The first and most important thing to understand is your auto insurance in New Jersey which is made of several parts. The information/declarations page is where you will find the effective dates,  details of the cars covered on the policy, policy number, your premium, risk classifications, the lien holder (in case you have a loan on the car), coverage limits, the coverage’s and if any surcharges or discounts. In addition to that, you will find where the car is garaged and contact info of your insurance agent.

The policy form or as it is known the personal auto policy is several pages long document where you will find detail information about what is covered, the conditions of the insurance policy, how those coverage’s are defined and if there are any exclusions so ever. Some policy forms may include all available coverage.

In order to be sure that you are not overpaying for your New Jersey car insurance, there are few checks you need to do before you sign your policy. They are all significant in terms how high or low your overall rate will be and a simple check shouldn`t take more than seven or eight minutes.

What to look for on your car insurance policy that can bring your lower rate

–              Personal information

You need to check if your address and parking information is correct. Off street parking means that lower premiums and you need to notify your agent if in your policy is stated that you park your car on street and in mean time you started to park the car in your garage.

–              Model, Year, Make, Vehicle identification number

Your insurance rates are heavily based on the car you own and because of that you need to make sure all of your info such as year, model, make, and verification identification number or VIN is correct. This is significant because if there is something wrong with your declaration you can have problems in case you file a claim of any kind. You also need to know that if your car has plenty of safety features you can ask for a discount based on that, most of the companies will approve a discount on that base.

–              Lien holder information

In case you have made a loan to buy your vehicle, the lien holder will be listed on your insurance policy. In such case you need a document that confirms that your loan is paid off so the lien holder is removed from the policy. That can sometimes result with lower premium.

–              Collision and Comprehensive

With collision there is one simple unwritten rule that says the higher the deductible the lower your premium. Comprehensive, on the other hand, is often referred as “other than collision” coverage. One way to get lower premium is to remove collision or/and comprehensive from your insurance policy. However, before you decide to do such thing it`s highly recommendable to weigh the true value of your vehicle and the cost to repair or replace against possible savings in premium costs.

–              Discounts

Typically all of your discounts are listed at the bottom of your information or declaration page. You need to check the list of discounts available and compare with the discounts that are given to you. In case you find that there are discounts for which you are eligible, you need to call your insurance agent and talk to him about that.

–              Premium

The amount of premium and how is calculated is something that can be easily checked if you can spare some time to do so. New Jersey`s Department of Banking and Insurance is the place where such information can be obtained from. Moreover, you can call your New Jersey car insurance agent and ask him about any detail regarding your premium. He is obligated to give any information on how your premium is calculated.

Other important things to know about your auto insurance policy

–              Your driving record

An accident, speeding ticket or any other traffic violation can influence your premium. In case your traffic violation is few years you need to talk to your insurance agent and see for how long it will influence your premium. After a certain period, you need to ask that to be removed from your driving record so it won`t raise your premium year after year.

–              Drivers

Sometimes the people that are listed as drivers on your car insurance policy may not be listed on the information or declaration page. However, they can make a big difference in how much you spend on your insurance. Many insurance companies pay a close attention to the people that you list on your policy as drivers.

–              Claim History

Every time when a driver applies for a new policy or for a renewal of the old one the insurance company checks the driver`s claim history. In case you are a new client most of the insurance companies run so called CLUE report – Comprehensive Loss Underwriting Exchange report. Based on this report, they calculate how much your insurance policy will cost. Talk to your agent and ask him for how long your old claims will affect your premium.

–              Credit History

Some insurance companies in New Jersey use your credit history to form called insurance score that later will be used to calculate your premium. Checking your credit score and talking to your insurance agent can give you a clue how it affects your premium and if it affects at all considering that many insurance companies don’t use this method.

Understanding your options is the first step towards making a good deal on your insurance policy. The second more important is to get as many quotes as possible. The easiest way to do so is to enter your zip code and wait for the best auto insurance quotes in New Jersey.