New Jersey Auto Insurance Requirements
The State of New Jersey Department of Banking and Insurance has mandated that all state licensed carriers offer basic coverage to any driver requesting such a policy. This cheap car insurance is not recommended for most drivers who have significant assets or financial responsibilities. Here’s a comparison of basic and standard auto insurance policy requirements:
(Source: New Jersey Department of Banking and Insurance.)
Drivers who do not carry a valid state insurance card (or are uninsured) face civil fines of up to $1000, suspension of driver’s license for one year, and community service for first offenders.
Factors Influencing Car Insurance Premiums in New Jersey
Finding cheap car insurance in New Jersey is not an easy task, as New Jersey ranks in the top third most expensive states in the U.S. in which to insure a motor vehicle. There are a variety of factors that go into underwriting auto insurance, and New Jersey is subject to some of the worst conditions for drivers due to:
– Population density is high, which is directly related to the number of cars on the road, and accident rate
– Uninsured driver rate is above national average
– Personal Injury Protection (PIP) awards are above national averages
– Theft and vandalism rates are above national averages
– Auto insurance fraud cases are above national averages
The average auto insurance premium for residents in New Jersey is $1,663 in 2011; the national average is $1,790. New Jersey ranks as the 18th most expensive state in which to insure a car.
Tips for Obtaining Cheap Car Insurance in New Jersey
– Multi-car discounts
– Reduce driving to under 7,500 miles / year – New Jersey has an excellent public transportation system
– Bind multiple policies (homeowners, life, auto) with the same provider
– Maintain a good credit score
– Create a personal “emergency fund” of up to $1500 and increase your deductibles
– Get at least three quotes at renewal time
– Talk to your insurance provider about affinity discounts
– Drop comprehensive and collision insurance on older vehicles
New Jersey Statistics
– Auto Theft: Incidences of auto theft in New Jersey have decreased rather dramatically in recent years. This can be attributed primarily to anti-theft devices being standard on recent model cars, as well as public awareness of the issue:
(Source: Auto Thiefs)
– Automobile Accidents: The total vehicle miles traveled in New Jersey have remained fairly constant in recent years, following a nationwide trend, though 2009 saw a continuing trend toward decreasing the number of deaths in car crashes.
(Source: National Highway Traffic Safety Administration.)
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