3 Important Things You Should Know About NJ Auto Insurance

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  1. Minimum Liability

New Jersey is different from other states in the US when it offers two options for the driver for minimum liability, which are an essential policy and a standard policy. The basic system is cheaper than the standard policy, but it will cause to get lower coverage, you will pay more and maybe out of your budget).

What are the fundamental and standard policy of NJ auto insurance? The explanations of each system could be read below :

Basic Policy

  • $5,000 property damage coverage per accident
  • $15,000 personal injury coverage per person/accident

Standard Policy

  • $15,000 bodily injury coverage per person

  • $30,000 bodily injury coverage per accident

  • $5,000 property damage coverage per accident

  • $15,000 personal injury coverage per person/accident

The State of New Jersey only suggests the Basic Policy for people with no relatives or family and assets (including income) protect them. The rest of residents should choose for a Standard Policy, and you will probably need more than the minimum coverage and adding comprehensive coverage to protect your car from fatal damage.

Please always compare quotes from one insurance to another one before you determine which insurance you will choose. Each of NJ auto insurance company has made different calculation premiums, and you must make sure that you’re getting the right coverage package for the probability of cheapest costs.

  1. Your Insurance Score Will Affect to Your Auto Insurance Rate

If you apply for an NJ Auto Insurance, you must be aware of your insurance score. It’s separated from your credit score. Some insurance company told us that elements from the driver’s credit history would help them to predict the potential of insurance loss. So, if you have a bad credit history, please don’t expect too much that you will get more coverage unless you are willing to pay it at a higher rate. Although New Jersey Department of Banking and Insurance has clarified can not base the score on race, sex, age, religion, ethnicity, income, address, unpaid medical bills, and the number of inquiries for home and auto loans made within 30 days. Each insures its different criteria of elements to create a score and don’t reveal them to the public.

  1. There are Auto Insurance Providers for Teen Drivers with Educational Resources

If you have teen drivers, you might be happy to hear that NJ auto insurance providers have some offers for them. New Jersey is one of safest state for teen drivers during period 2001 to 2016 which has 9% higher rate than the national average rate which 18 teen drivers were killed in car accidents and fatalities dropped by 56%. You can use insurer’s resources to help your teen drivers stay safe on the road. We recommend you to sign them up on a driver education class, install the app to track their speed and driving way and tell them that those apps will help them drive safely and train them becoming a responsible driver.