The average auto insurance premium for residents in New Jersey was $1,365 in 2003; the national average was $914. Some people think the state and insurance companies fix the rates, so they never shop around for better rates. Insurance companies segment their rates differently so everyone's rate will be different with each company. You have to shop around to see if you are saving money. CarInsurance.com helps you find the competitive rates and discounted prices available in New Jersey, so average New Jerseyites can get a better-than-average low rate on their auto insurance.
2007 had the first decrease in rates since 1999. 2007 had a .5% to 1% decrease in car insurance rates from 2006. In 2008, rates are expected to slowly rise again! Sites like CarInsurance.com recognize that the only way to save is to shop. We bring competition directly to the consumer and lower your costs through technology!
Visit the U.S. Car Insurance Requirements page to see how New Jersey state laws compare to other states.
Rates also change over the years and especially in a state like New Jersey, if you are not careful you could end up paying too much for your auto insurance. Looking back, the average auto insurance premium in 2000 was about $1,146; it increased 19.11% in just 3 years! Since then rates have fluctuated. Don't waste your money paying high insurance premiums.
Sunday, August 3, 2008
Public auto insurance
Public auto insurance is a government owned and operated system of automobile insurance operated in the Canadian provinces of British Columbia, Saskatchewan, Manitoba and Quebec. According to studies by the Consumers' Association of Canada, rates charged for auto insurance in these four provinces are lower than in provinces that use a private auto insurance system.[1] In Quebec public auto insurance is limited to coverage of personal injuries while damage to property is covered by private insurers.[2] Saskatchewan has the oldest public auto insurance system with Saskatchewan Government Insurance being founded in 1945. Manitoba Public Insurance was created in 1971 followed by the Insurance Corporation of British Columbia in 1973 and the Société de l'assurance automobile du Québec in 1977.
Other provinces have considered introducing a public auto insurance system. The Ontario New Democratic Party won the 1990 provincial election on a platform that included public auto insurance. After assuming office, Premier Bob Rae appointed Peter Kormos, one of the most vocal proponents of public insurance, as the minister responsible for bringing forward the policy.[3] With the onset of the recession, however, both business and labour groups expressed concern about layoffs and lost revenues.[4] The government rejected the policy in 1991.
Public auto insurance has also been considered in New Brunswick after private insurance rates nearly doubled from 2003 to 2005, but was ultimately rejected by the provincial government.[5] It was also an issue in Nova Scotia during its 2003 provincial election and remains in the platform of the official opposition, the Nova Scotia New Democratic Party.[6] It was also under consideration by the Newfoundland and Labrador Progressive Conservative government of Danny Williams in 2004 as a "last resort" when private insurance firms threatened to pull out of the province in response to legislation rolling back premium.
Other provinces have considered introducing a public auto insurance system. The Ontario New Democratic Party won the 1990 provincial election on a platform that included public auto insurance. After assuming office, Premier Bob Rae appointed Peter Kormos, one of the most vocal proponents of public insurance, as the minister responsible for bringing forward the policy.[3] With the onset of the recession, however, both business and labour groups expressed concern about layoffs and lost revenues.[4] The government rejected the policy in 1991.
Public auto insurance has also been considered in New Brunswick after private insurance rates nearly doubled from 2003 to 2005, but was ultimately rejected by the provincial government.[5] It was also an issue in Nova Scotia during its 2003 provincial election and remains in the platform of the official opposition, the Nova Scotia New Democratic Party.[6] It was also under consideration by the Newfoundland and Labrador Progressive Conservative government of Danny Williams in 2004 as a "last resort" when private insurance firms threatened to pull out of the province in response to legislation rolling back premium.
Auto insurance risk selection
Auto insurance risk selection is the process by which vehicle insurers determine whether or not to insure an individual and what insurance premium to charge. Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company in accordance to a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverages than on mandatory liability coverages.
When the premium is not mandated by the government, it is usually derived from the calculations of an actuary based on statistical data. The premium can vary depending on many factors that are believed to have an impact on the expected cost of future claims.[1] Those factors can include the car characteristics, the coverage selected (deductible, limit, covered perils), the profile of the driver (age, gender, driving history) and the usage of the car (commute to work or not, predicted annual distance driven).
When the premium is not mandated by the government, it is usually derived from the calculations of an actuary based on statistical data. The premium can vary depending on many factors that are believed to have an impact on the expected cost of future claims.[1] Those factors can include the car characteristics, the coverage selected (deductible, limit, covered perils), the profile of the driver (age, gender, driving history) and the usage of the car (commute to work or not, predicted annual distance driven).
New Jersey Insurance Requirements
New Jersey state law requires minimum Bodily Injury Liability limits of $15,000 per injured person up to a total of $30,000 per accident, and Property Damage Liability coverage with a minimum limit of $5,000. This basic coverage is often referred to as 15/30/5 coverage with 15/30 UM limits.
New Jersey Coverage:
Basic Policy
Property Damage Liability: $5,000 Limit
Personal Injury Protection: $15,000 Limit
Standard Policy
Bodily Injury Liability: $15,000/$30,000 Limit
Property Damage Liability: $5,000 Limit
Uninsured/Underinsured Motorist Bodily Injury: $15,000/$30,000 Limit
Uninsured Motorist Property Damage: $5,000 Limit
Personal Injury Protection: $15,000 Limit
*Both Basic and Standard Policies include $250,000 PIP limit for permanent or significant injury.
The state of New Jersey follows a Choice No-Fault system meaning drivers may reject the No-Fault system options and retain the right to sue (Tort system) for any auto-related injury.
Personal Injury Protection (PIP) in your coverage helps pay for "reasonable and necessary" medical expenses for you and your passengers. New Jersey state law requires a minimum Personal Injury Protection coverage of $15,000.
To help protect against damages caused to you and your passengers by an uninsured driver, New Jersey state law requires a minimum Uninsured/Underinsured Motorist coverage of $15,000 per person up to a total of $30,000 per accident for any bodily injury caused by the uninsured and/or underinsured driver (depending on the state).
New Jersey Coverage:
Basic Policy
Property Damage Liability: $5,000 Limit
Personal Injury Protection: $15,000 Limit
Standard Policy
Bodily Injury Liability: $15,000/$30,000 Limit
Property Damage Liability: $5,000 Limit
Uninsured/Underinsured Motorist Bodily Injury: $15,000/$30,000 Limit
Uninsured Motorist Property Damage: $5,000 Limit
Personal Injury Protection: $15,000 Limit
*Both Basic and Standard Policies include $250,000 PIP limit for permanent or significant injury.
The state of New Jersey follows a Choice No-Fault system meaning drivers may reject the No-Fault system options and retain the right to sue (Tort system) for any auto-related injury.
Personal Injury Protection (PIP) in your coverage helps pay for "reasonable and necessary" medical expenses for you and your passengers. New Jersey state law requires a minimum Personal Injury Protection coverage of $15,000.
To help protect against damages caused to you and your passengers by an uninsured driver, New Jersey state law requires a minimum Uninsured/Underinsured Motorist coverage of $15,000 per person up to a total of $30,000 per accident for any bodily injury caused by the uninsured and/or underinsured driver (depending on the state).
Vehicle insurance
Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.
In the United States, auto insurance is compulsory in most states, though enforcement of the requirement varies from state to state. The state of New Hampshire, for example, does not require motorists to carry liability insurance (the ballpark model), while in Virginia residents must pay the state a $500 annual fee per vehicle if they choose not to buy liability insurance.[4] Penalties for not purchasing auto insurance vary by state, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time in some states. Usually, the minimum required by law is third party insurance to protect third parties against the financial consequences of loss, damage or injury caused by a vehicle.
Arizona Department of Transportation Research Project Manager John Semmens has recommended that car insurers issue license plates, and that they be held responsible for the full cost of injuries and property damages caused by their licensees under the Disneyland model. Plates would expire at the end of the insurance coverage period, and licensees would need to return their plates to their insurance office in order to receive a refund on their premiums. Vehicles driving without insurance would thus be easy to spot because they would not have license plates, or the plates would be past the marked expiration date.
In the United States, auto insurance is compulsory in most states, though enforcement of the requirement varies from state to state. The state of New Hampshire, for example, does not require motorists to carry liability insurance (the ballpark model), while in Virginia residents must pay the state a $500 annual fee per vehicle if they choose not to buy liability insurance.[4] Penalties for not purchasing auto insurance vary by state, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time in some states. Usually, the minimum required by law is third party insurance to protect third parties against the financial consequences of loss, damage or injury caused by a vehicle.
Arizona Department of Transportation Research Project Manager John Semmens has recommended that car insurers issue license plates, and that they be held responsible for the full cost of injuries and property damages caused by their licensees under the Disneyland model. Plates would expire at the end of the insurance coverage period, and licensees would need to return their plates to their insurance office in order to receive a refund on their premiums. Vehicles driving without insurance would thus be easy to spot because they would not have license plates, or the plates would be past the marked expiration date.
The State of New Jersey
New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north by New York, on the east by the Atlantic Ocean, on the southwest by Delaware, and on the west by Pennsylvania. Parts of New Jersey lie within the sprawling metropolitan areas of New York and Philadelphia.
Inhabited by Native Americans for more than 2,800 years, the first European settlements in the area were established by the Swedes and Dutch in the early 1600s.[5] The English later seized control of the region, naming it the Province of New Jersey, which was granted to Sir George Carteret and John Berkeley, 1st Baron Berkeley of Stratton as a colony. The name was taken from the largest of the English Channel Islands, Jersey. New Jersey was an important site during the American Revolutionary War; several decisive battles were fought there. The winter quarters of the revolutionary army were established twice by George Washington in Morristown, which was called the military capital of revolution. Later, people who worked in factories in cities such as Paterson and Trenton helped to drive the Industrial Revolution in the nineteenth century. New Jersey's position at the center of the BosWash megalopolis, between Boston, New York City, Philadelphia, Baltimore and Washington, D.C., fueled its rapid growth through the suburban boom of the 1950s and beyond.
Inhabited by Native Americans for more than 2,800 years, the first European settlements in the area were established by the Swedes and Dutch in the early 1600s.[5] The English later seized control of the region, naming it the Province of New Jersey, which was granted to Sir George Carteret and John Berkeley, 1st Baron Berkeley of Stratton as a colony. The name was taken from the largest of the English Channel Islands, Jersey. New Jersey was an important site during the American Revolutionary War; several decisive battles were fought there. The winter quarters of the revolutionary army were established twice by George Washington in Morristown, which was called the military capital of revolution. Later, people who worked in factories in cities such as Paterson and Trenton helped to drive the Industrial Revolution in the nineteenth century. New Jersey's position at the center of the BosWash megalopolis, between Boston, New York City, Philadelphia, Baltimore and Washington, D.C., fueled its rapid growth through the suburban boom of the 1950s and beyond.
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