New Jersey, most popularly known as The Garden State, surprisingly has some of the highest car insurance rates out of any state; however, that doesn’t mean you can’t find a manageable price for your income.
In addition to having some of the highest rates, New Jersey also has a complex system that consists of equally complex policy selections. Using Truly Insurance is a great way to find the resources you need to find cheap car insurance in NJ.
Average Insurance Rates in New Jersey
As previously mentioned, New Jersey has some of the highest insurance rates in the country. The reason for this is highly based on the large population of the small state, in addition to tourists who frequently visit for historical and coastal purposes. With the number of drivers on the road, it leaves extra room for car accidents, which ultimately means finding an affordable car insurance provider in NJ can be tricky.
By looking around, though, and comparing the rates of multiple insurers, you can find what you’re looking for. In addition to getting an affordable rate, you want to ensure that your vehicle is protected against car accidents as well as the natural environmental damage that can result from coastal hurricanes.
The average cost of car insurance in The Garden State is approximately $1,260, while the national average ranges at roughly $890. As you can tell, that’s a dramatic increase that only seems to be climbing the dollar scale each year. Since 2011, car insurance rates in New Jersey have jumped just under seven percent.
What Scores Affect Insurance Rates?
If you are in the majority, then you likely know your credit score, but are you aware that you also have an insurance score that can influence your rate? Typically, a driver’s credit history gets used to determine a certain insurance score, which then allows insurers to assist with predicting the chances of an insurance loss.
It’s important to keep in mind that not all insurers include the same score elements to determine your rate, and you likely won’t find out the factors that are calculated. However, insurance regulations do prohibit insurers against basing rates on income, religion, outstanding medical bills, race, gender, or the number of inquiries made against your credit report. If your credit score is good, it’s almost a guarantee that your insurance score is good, too.
The simple fact that you won’t know exactly what impacts your score is another reason why you need to shop around to get the cheapest rate for the type of insurance you are seeking.
New Jersey Insurance Law Guide
There are few states that have a complex “no-fault insurance system,” and New Jersey is one of them. As such, the state enables accident victims to collect their benefits from their insurers regardless of who is responsible for the accident.
New Jersey offers both basic and standard insurance policies, and finding the cheapest rate is going to depend on your needs. The state’s basic policy offers the barebones of minimal coverage, and more often than not, is the least expensive. However, that doesn’t always mean it’s best for you.
Basic policies in the state typically include the following coverage:
- Approximately $5,000 property damage for each accident
- Approximately $15,000 for any personal injury obtained in each accident
Standard policies in New Jersey aren’t as cheap, but you can find a great rate by shopping around. The standard policies typically include a minimum coverage of the following:
- Approximately $15,000 for bodily injury per person and $30,000 per accident
- Approximately $15,000 for protection against personal injury per accident or person
- Approximately $5,000 for property damage per accident
Possible Ways to Lower Car Insurance Rates
There are so many factors that get taken into consideration when insurers determine the cost of your premiums, but there are a few tips and tricks that you can use when trying to get cheap car insurance in NJ. By paying attention to the following tips, you might be able to save some of that cash in your wallet.
- Completing a safe driver course: Defensive Driving and Driver Training courses are amongst some of the most popular ways to get an insurer to give you a premium break.
- Advice your insurer of marriage or college completion: Surprisingly, you might obtain a cheaper rate by receiving a college degree and by being married. It’s suggested that you contact your insurer to see how it impacts your premium rate.
- Change zip codes: Unlike many other places, moving to a different zip code can actually decrease your insurance rate. In some cases, your monthly rate can drop by approximately $50 within a 10-mile radius.
- Improving credit score: Building your credit score is no easy task, but it impacts your insurance score as well as your financial health.
- Purchase a vehicle with good safety ratings: Larger vehicles, or those that have scored high in safety tests, often get a slightly cheaper rate. It’s always good to consult with your insurer to find out what the best vehicles are before purchasing.
- Look into discounts: Depending on who your insurer is, you can usually get discounts when bundling your insurance. An example is getting insurance for your multiple vehicles and your home, or get renter’s insurance.
- Drive less frequently: Insurance companies look at your mileage annually, and the less time you spend on the road, means that you’re less likely to get into a car accident. Lowering your mileage can result in a cheaper rate.
- Just wait: If you are a younger driver, you are going to be looked at as a high risk regardless. It might take some time for you to get the best rates, but you are going to get there.
- Allow monitoring: Some car insurance agencies have devices that track your driving habits, and the devices can let them know how high or low your risk is. If the insurer sees that you are low risk because of the device’s reports, you might be eligible for a cheaper rate.
What It Comes Down to
No one insurance company has the cheapest car insurance for everyone. The only sure way you’re going to find a rate and plan that works the best for you is to get multiple quotes from multiple agencies.
Do your research by looking into information that Truly Insurance provides you and contacting agencies. If you are prepared and knowledgeable, you’re more likely to receive a discounted rate.