Auto insurance is a mandatory coverage in the state of New Jersey. It may be mandatory, but drivers have a choice as to how much to buy and how much to pay for coverage.
Some New Jersey drivers feel they are at the mercy of the insurance companies. After all, they don’t truly understand New Jersey auto insurance coverages and how policy premiums are determined. In today’s economy, consumers can no longer leave their auto insurance decisions up to the insurance agent or broker. It’s time to take a proactive role in determining how much to buy and how much to pay. Read also: New Jersey Basic Automobile Insurance Policy.
New Jersey Automobile Insurance Price Comparison
The New Jersey Department of Banking & Insurance is a great resource for New Jersey drivers. Drivers can quickly determine which insurers charge the most reasonable rates for insurance. All one has to do is access the New Jersey Department of Banking & Insurance website and access Auto Insurance Premium Comparison page. Here the consumer can select a sample NJ auto rating option that most closely mirrors her vehicle and underwriting information.
The website provides underwriting scenarios for private passenger vehicles. The rating scenarios include a young male driver, married couple, older unmarried male and older married couple, (it appears that they forgot that single women have the right to drive too).
After selecting the underwriting scenario that most closely matches the driver's situation, the user then visits the Private Passenger Auto Insurance Premium Comparison page. There the driver selects the zip code of the vehicle’s primary garage location. Upon selecting the zip code the driver is given a list of auto premiums listed alphabetically by insurer. The premiums are listed in columns that correspond to the selected underwriting scenario (single male, married couple, etc).
Keep in mind, however, that the premiums listed on the chart are samples only. Premiums will change based on underwriting information such as driving record, prior auto insurance losses, vehicle type, etc. What it does provide, however is an apples-to-apples comparison of each insurance company’s underwriting and corresponding pricing.
Understand New Jersey Insurance Coverages
As mentioned earlier, automobile insurance is mandatory in New Jersey, and is subject to a minimum liability limit of $15,000 per person and $30,000 for bodily injury and $5,000 per accident for property damage liability. Anyone who has had any dealings with attorneys and the court system knows that the mandatory limits are modest at best.
New Jersey drivers should spend a little time becoming familiar with the coverages increased limits available to them. The NJ Department of Banking & Insurance’s document “ Everything you wanted to know about Auto Insurance” is a nice place to start. It not only explains the coverages, it outlines the state minimum requirements and driver options to purchase higher insurance limits.
It is recommended that drivers seeking New Jersey auto insurance review the document before contacting an insurance company. Having a general understanding of what to buy makes it easier to negotiate premiums, deductibles and limits with the insurance agent. Read also: Purchasing Auto Insurance in New Jersey.
Contact a Licensed New Jersey Automobile Insurer
Armed with insurance knowledge and the necessary underwriting information, New Jersey drivers can contact the insurance companies that listed the most attractive rate in the auto insurance comparison. The New Jersey Department of Banking & Insurance website offers the names, addresses, phone numbers and websites of all auto insurance carriers licensed to do business in New Jersey.