New Jersey Auto Insurance

New Jersey insurance companies can use your credit history to accept applicants and set insurance rates.  They may also use your credit score to determine your risk factors however many other factors are used to determine your rates such as the age of the drivers on the policy, the car you drive, driving record, where you live and your marital status.  Since New Jersey is a choice No Fault state and individuals can opt for the Tort laws under which any individual who is found to be at fault in an accident can be sued for pain, suffering, lost wages, and medical expenses.  For this reason, insurance companies advise policy holders to buy more than the minimum liability auto insurance.  The average insurance premium in New Jersey as of 2006 is approximately $1,152.00 and the state is ranked as the 2nd most expensive for insurance premiums in the nation.

The state of New Jersey requires all insurance companies to offer uninsured and underinsured motorist insurance with their policies.  Uninsured and underinsured coverage provides protections against drivers who do not carry the mandatory liability auto insurance demanded by the state.  Underinsured and uninsured coverage is not mandatory in the state of New Jersey but it is recommended.  If you decide to forego this option, the insurance company is required to provide a signed declaration page stating that you chose not to take the underinsured and uninsured coverage.

You or your insurance company may exclude members of your household from coverage on your insurance policy.  If the individual is not listed on your policy but has access to your vehicles, the insurance company does not have to provide coverage for that person in the case of an accident.  For this reason it is wiser to include all persons on your policy who are old enough to drive.  Any exclusion will be listed in the exclusion portion of your policy with other circumstances which will allow the insurance company to deny a claim.  If your policy lapses or cancels you can be cited for driving without the required insurance so you must pay the premium to reinstate the policy immediately.  New Jersey does not offer a grace period.  If the policy is cancelled, then you must find a new auto insurance policy right away. 

You should be aware that New Jersey has a cell phone use and texting law in place.  You will be charged with a $100.00 fine if you are caught talking on a cell phone or other wireless device, or texting while operating a motorized vehicle.  You may however, use a hands free device as long as it does not interfere with the operation of the vehicle.  The exception to this law is if you believe yourself to be in danger or there is an emergency.  You should also be aware that driving with an expired inspection sticker will result in fines of $100.00 to $200.00 and/or jail time of 30 days and the possible loss of registration privileges in the state of New Jersey.

There are 40 officially accepted insurance companies listed in New Jersey.  They include AAA Mid-Atlantic Group, Allstate Group, American Commerce Insurance Company, American International Group, Amica Property and Casualty Insurance Company, Balboa Group, California Casualty & Fire Insurance Company, Chubb Insurance Company of New Jersey, citizens United Reciprocal Exchange, Electric Insurance Company, Encompass Group, Esurance Insurance Company of New Jersey, Farm family Casualty Insurance Company, Farmers Insurance Group, Fireman’s Fund Indemnity Corporation, Fitchburg Mutual Insurance Company, Founders Insurance Company, GEICO Group, Hanover Insurance Group, Hartford Underwriters Insurance Company, High Point Group, IDS Property Casualty Insurance Company, IFA Insurance Company, Liberty Mutual Group, Mercury Indemnity Company of America,  MetLife Auto and Home, New Jersey Manufacturers Group, New Jersey Skylands Group, Palisades Group, Personal Service Insurance Company, Privilege Underwriters Reciprocal Exchange (PURE), Progressive Group, Selective Auto Insurance Company of New Jersey, State Farm Group, Tokio Marine & Nichido fire Insurance Company, Travelers of New Jersey, Unitrin Direct Insurance Company, USAA Group, and Western General Insurance Company.

One of the methods you can use to reduce the cost of your auto insurance premiums is to purchase more than one type of insurance policy with the same company.  You will also get discounts for a clean driving record and possibly for renewing you policy with the same company repeatedly.  Insuring multiple vehicles will also reduce your premiums.  Anti theft devices and safety mechanisms such as airbags and seat belts will contribute to the reduction of your auto insurance premiums.  It may also help to know the ten most popular cars targeted by car thieves in New Jersey.

Top Ten Stolen Cars

1.        1991 Honda Accord
2. 2000 Honda Civic
3. 1990 Toyota Camry
4. 1994 Jeep Cherokee/Grand Cherokee
5. 1994 Dodge Caravan
6. 1995 Nissan Maxima
7. 1995 Acura Integra
8. 1993 Plymouth Voyager
9. 1996 Ford Taurus
10. 2000 Dodge Intrepid