New Jersey car insurance is required by law for all residents who want to drive. There are many different places to obtain insurance from and many different policies to cover all your needs. But where do you start?
First, the internet is the best place to start. When you’re looking for different insurance companies and quotes, the internet will provide you with a buffet of options to choose from like https://newjersey-insurance.net/new-jersey-auto-insurance/. However, never use the internet as an authority on the subject.
The next step after find some information is to begin speaking with either the insurance companies directly or using an insurance agent. An agent should be able to explain anything you don’t understand in a plain fashion. An agent may also have additional leads, that you might not have found out about.
In New Jersey, there are two types of automobile insurance. The first is the basic policy. It’s the cheapest option, but only has limited benefits. For example, the basic policy has a limited right to sue. It basically provides the driver with the absolute minimum coverage allowed by New Jersey Law.
The other option is a standard policy, which is what most people go with. It provides some medical cost coverage and uninsured/underinsured motorist coverage. Optionally, comprehensive, collision and other types of policies can be added. Some insurance companies will also have these optional additions for basic policies.
New Jersey uses insurance eligibility points to classify who is considered a high-risk driver. If a person has more than seven or more points, they can be denied a policy by any insurance company. If the driver can’t find someone to insure them, they will need to be insured by the Personal Automobile Insurance Plan (PAIP). This should be considered a last option, as the premium rates are much higher. Make sure you’ve talked to every insurance company before applying for PAIP.
When you’re getting a quote be sure to ask if you are eligible for any type of discounts. There are usually several ways to get a lower premium, you just need to ask. For example, paying a higher deductible often leads to a lower premium.
There are many different things that can affect your premium rate like gender, age, vehicle type, geographic location and your driving record. It’s best to get as many quotes as possible, using the same or similar coverage options. This will give you the best comparison of price and coverage between companies.