Automotive Insurance NJ  Consumer Insurance Resources.


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NJ Auto Insurance consumers have control over a variety of factors that influence the cost of auto insurance. Before you buy, check out:


Your collision and comprehensive deductibles. NJ Auto Insurance Consumers can save premium dollars by choosing higher deductibles or eliminating coverage for older cars that are already paid for.
Your auto-related health insurer option. NJ Insurance Consumers can save premium dollars by choosing their health care insurers as primary in the case of auto accident-related injuries. It is important to check with your health care insurer before choosing this option.
Your Personal Injury Protection deductible and limits. NJ Auto Insurance Standard policies usually carry a deductible of $250 and a PIP limit of $250,000. Consumers can save premium dollars by choosing a higher deductible of $500, $1,000, $2,000 or $2,500 AND/OR by choosing one of the new lower PIP limits of $15,000, $50,000, $75,000, $150,000.
Your lawsuit option. NJ Auto Insurance Consumers can save premium dollars by choosing the Limitation on Lawsuit option, which limits suits for pain and suffering except in cases of death or serious injury.
Your vehicle options. Generally, higher-priced cars and high-performance vehicles cost more to insure.
Your multiple car discount. Insuring two or more automobiles on one policy can reduce your premium.
Your youthful operator credits. Some insurers offer special "Good Student" discounts and discounts to those who successfully complete driver education programs.
Finally, remember your NJ Auto Insurance ABCs: check with your Agent, Broker or Company representative if you have questions about your coverage options.

NJ Auto Insurance Rating Examples


NJ Auto Insurance Example 1-A
Driver: 18-year-old, youthful male, unmarried

 

NJ Auto Insurance Example 1-B

Driver: Use same criteria as 1-A, except one at-fault accident
 
Example 2-A
Driver: Married couple, both between ages of 30 and 49 with newly licensed 17-year-old daughter in household


 

NJ Auto Insurance Example 2-B
Driver: Use same criteria as 2-A, except husband has one at-fault accident
NJ Auto Insurance Example 3-A
Driver: Married couple, both between ages of 30 and 49

 

 

NJ Auto Insurance Example 3-B

Driver: Use same criteria as 3-A, except husband has a four-point moving violation and two

comprehensive claims over $750 each; wife has one at-fault accident

 

 

NJ Auto Insurance  Example 3-C

Driver: Use same criteria as 3-A, except:


NJ Auto Insurance Example 4-A
Driver: Married couple, both between the ages of 65 and 69
NJ Auto Insurance Example 4-B
Driver: Use same criteria as 4-A, except one at-fault accident
 
NJ Auto Insurance  Example 5-A
Driver: 26-year-old female, unmarried
NJ Auto Insurance Example 5-B
Driver: Use same criteria as 5-A, except one at-fault accident
 
Example 5-C
Driver: Use same criteria as 5-A except:
NJ Auto Insurance Example 6-A
Driver: 30-year-old male, single car policy
 
NJ Auto Insurance Example 6-B
Driver: Use same criteria as 6-A except:
 
NJ Auto Insurance Example 7
Driver: 30-year-old male, single car policy Shopping for automobile insurance is a task that requires, time, patience and knowledge. This worksheet will assist you by providing a list of the documents and information commonly requested by companies and agents during the application process. You may find it helpful to collect the information before you apply for insurance. This could prevent unnecessary delays that occur when applications are deemed incomplete.

 
NJ Auto Insurance Legal Documents
Completed Application
Completed Coverage Selection Form
NJ Auto Insurance Supporting Documents/Information
Proof of residency *
The following information for each driver listed as operators: name, relationship to applicant, date of birth, sex, marital status, and social security number
Copy of Motor Vehicle Reports for all drivers listed as operators**
Copy of driver's license(s) for each driver in household
Year, make model, body style and vehicle identification number of each vehicle to be insured
Copy of registration for all vehicles in household
Copies of policies for vehicles in household not insured under requested policy
Copies of police reports for all accidents
Copies of moving violation citations
Lien holder/copy of lease(s), if applicable
Copy of current auto policy/insurance card(s) indicating coverage for previous 12 months
Employment information for drivers in household
Odometer reading for each vehicle
Distance of commute to work/school for each vehicle
Membership ID, card, etc., if applying for insurance with a company with membership requirements
NJ Auto Insurance Discount Documents
Driver Training or Defensive Driver certificate
Report card or transcript for Good Student discount
Copy window sticker or invoice for anti theft discount
Copy of window sticker or invoice for safety devices
Membership card for member organization discount

*Proof of residency may include utility bill, copy of lease, affidavit from homeowner, phone bill, mortgage coupon, recent bank statement or voter registration card.
**You are not required to personally supply copies of motor vehicle reports. However, this may expedite the process.
 
NJ AUTOMOBILE INSURANCE CONSUMER BILL OF RIGHTS

You have the right to purchase NJ Auto Insurance:

You can never be denied auto insurance based on your gender, race, or ethnicity. In most
circumstances, a company cannot refuse to sell you insurance based on where you live as long as
you are an “eligible”* person.
If you are denied auto insurance coverage, the agent or company must state a reason. Common
reasons include:

You are not an “eligible” person due to the number of points on your record.
The insurer is a “membership company” that only covers certain categories of drivers.
The Department of Banking and Insurance has permitted the insurer to stop writing new
policies.

You have the right to cancel or change NJ Auto Insurance:

You can shop for cheaper auto insurance at any time – not just when your policy is up for
renewal. If you find a better price, you can cancel your old policy and seek a refund of your
unused premium. However, never cancel your old policy until a new one is in effect. A lapse in
coverage will result in higher rates in the future.
You have the right to change your coverages and policy limits at any time, even if you are not
near your renewal date. If you select lower policy limits or cancel nonmandatory coverages to
save money, you have a right to a refund of your unused premium within 60 days.

You have the right to NJ Auto Insurance choices:

Starting in mid-2004, agents, brokers and companies must give you three coverage choices,
called “Insurance Scenarios,” when applying for a new policy, or at any time upon your request
if you are already insured. You must be told how each choice may affect what you pay and what
your benefits would be in the event of an accident. You always have the right to ask about
additional options.

You have the right to a timely NJ Auto Insurance response:

You have the right to a timely response when seeking an appointment or application from an
agent, broker or company. Appointments should be scheduled so that you can obtain coverage
before your current policy expires. Please note that under current insurance regulations a
voluntary insurance company has five (5) business days from the date it receives a completed
application to either issue or deny coverage to the applicant. However, an application is not
considered complete until the company has obtained all pertinent information, including a copy
of the applicant’s driving record from the
Motor Vehicle Commission and verification of any
previous coverage. Therefore, the overall application process can take up to two weeks. Make
sure you give yourself enough time to shop for coverage.

You have the right to the prompt and fair handling of NJ Auto Insurance claims:

You have the right to ask about any payments made to others by your company and charged to
your policy. If you file a claim, it should be handled promptly and fairly. If a claim is denied,
you must receive a written explanation for the denial.

You have the right to a notice of NJ Auto Insurance cancellation:

There are specific circumstances that allow an insurance company to cancel your policy during
the policy period. This is referred to as a “mid-term cancellation.” This may only occur when
fraud is discovered, when your driver’s license is suspended or when the policyholder fails to
make premium payments. A 15-day warning notice must be sent before the policy is canceled.

You have the right to NJ Auto Insurance appeals:

If your coverage is canceled, you can file an appeal with the New Jersey Department of Banking
and Insurance. Contact Consumer Protection Services, P.O. Box 329, Trenton, NJ 08625-0329,
or call (609) 292-5316 or 1-800-446-SHOP. The Department cannot guarantee that your policy
will be reinstated, so you should not delay shopping for alternate coverage.
If a carrier denies you coverage and does not state a reason, or if you believe you have been
treated unfairly, you can contact Consumer Protection Services.

You have the right to a notice of NJ Auto Insurance non-renewals:

Insurers can decline to renew coverage for several reasons. Most often, this occurs when a
driver’s record includes “at-fault accident” or motor vehicle violations and is no longer
considered an “eligible”* person in the voluntary market. Other reasons include:

The Department has, for regulatory reasons, permitted the company to non-renew policies.
The insurer is using the 2-for-1 or the 2 percent rule. The 2-for-1 rule allows the insurer to
non-renew one vehicle for every two new ones it writes in each territory. The 2 percent rule
allows the insurer to non-renew up to 2 percent of policies in a territory experiencing heavy
growth. Drivers subject to non-renewal do not have clean driving records or have a poor
payment history. Insurers must state that they have invoked these rules on the non-renewal
notice.
A written non-renewal notice must be sent at least 60 calendar days prior to the expiration date
of the existing policy.

Your NJ Auto Insurance obligations as a New Jersey driver:

New Jersey state law requires that any registered vehicle be covered by an insurance policy.
Failure to maintain coverage can lead to higher prices for new policies, placement in the
“assigned risk” pool, suspension or revocation of your driver’s license or registration and
additional fines and penalties.
Maintaining your auto insurance coverage requires that you:

Always make payments for your policy on time or a lapse in coverage may result. A driver
who incurs a lapse will end up paying far more for coverage.

Always provide any information your company seeks. Insurance companies have the right to
seek information about all licensed drivers in the household.

If you receive a non-renewal notice, do not wait to shop for alternate coverage. Policies can
be prepared in advance to become effective on a date several days or weeks after the
application.
A driver who mails a renewal payment before the due date cannot lose coverage. However,
insurers can charge the driver a late fee if the payment is postmarked on time, but arrives after
the payment due date.

* A driver is considered an "eligible" person for NJ insurance in the voluntary or
"regular" market if he or she has fewer than seven insurance eligibility points on
his or her record. This means moving violation points added with insurance points.

 
 
Driver: Married couple, both between ages of 30 and 49 with 19-year-old daughter in
household

 
Reside in New Brunswick territory (May alternately use either territory of applicant
or territory of producer’s office where applicable)

 
Two vehicles on policy:
Car #1: 2002 Pontiac Grand Prix SE 4-door sedan (financed) driven by husband to
work 10 or more miles; 20,000 annual miles

Car #2: 1992 Chevrolet Lumina Std 4-door sedan (owned outright) driven by wife to
work less than three miles; 12,000 annual miles

 
No driver training, no good student, no defensive driving discount
 
No accidents within the past three years
 
No motor vehicle violations within the past three years
 
Continuous insurance with same company for 10 years
 
NJ Auto Insurance  POLICY SELECTION
No lawsuit threshold
$250,000 Standard PIP; $250 deductible
With a Category II anti-theft device discount, and active seatbelt and dual airbags
(front only) on Car #1

Bodily Injury limits of $100,000/$300,000
Property Damage Liability $25,000 (or combined single limit of $300,000)
Uninsured Motorist Coverage with Bodily Injury limits of $100,000/$300,000 and
Property Damage Liability $25,000 (or combined single limit of $300,000)

$500 deductibles for Comprehensive and Collision
*Available for use by Insurers and Agents Pursuant to N.J.A.C. 11:3-47

Department of Banking and Insurance Consumer Information Scenarios*

For purposes of completing the insurance scenarios, insurers and agents should assume
the following:

2

Cost Saving Options for NJ Auto Insurance

EXAMPLE:
This example assumes a typical (for insurance rating purposes) policyholder
household that includes a husband and wife with a 19-year-old daughter. They own a late-model
vehicle that is financed and an older vehicle that is paid off. The policy provides commonly
selected coverages and includes commonly selected deductibles, like those most New Jersey
drivers choose. The policy also has the No Limitation on Lawsuit option.
The annual premium for a policy like this, based upon the policyholder household described
above, would be approximately
$_____.
Based on the above, choosing the following coverage options would affect the premiums in the
approximate
amounts indicated below:
A. The policyholders do not have many assets they need to
protect and wish to save money, but would like to retain the
right to sue. Instead of the commonly selected liability limits
of $100,000/$300,000 and $25,000, they choose a policy with
the following minimum limits: Bodily Injury Liability limits of
$15,000/$30,000; Property Damage Liability of $5,000 (or
combined single limit of $35,000) and Uninsured Motorist
Coverage in these amounts. Choosing these limits will result in
a reduction of about
$______.
Total Approximate Premium: $_______

B. Choosing the coverage limits in A. and the Limited
Right to Sue option will result in a reduction of about
$_____.
Total Approximate Premium: $_______
NJ Auto Insurance Scenario 1:

Alternate Bodily Injury
Liability Coverage.
(The premium for the
Bodily Injury portion of
the policy in the
example above is
about $_______).

3

A. The policyholders have health insurance through work
and stable employment. Choosing to have their health insurance
as the primary source of coverage for medical expenses, instead
of their PIP, will result in a reduction of about
$_____. *
Total Approximate Premium: $______

B. Choosing to have PIP (medical expense) coverage of
$75,000 instead of the commonly selected $250,000 and a PIP
deductible of $1,000 will result in a reduction of about
$_____.
Total Approximate Premium: $______

C. Choosing the coverage limit and deductible in B. and the
“Medical Expense Only” option, (which excludes income
continuation benefits, essential services benefits, death benefits,
and funeral expense benefits) will result in a reduction of about

$______
.
Total Approximate Premium: $______

* Check with your health plan. Not all plans offer this option.

A. Excluding all physical damage coverage on the older
vehicle will result in a reduction of about
$_____.
Total Approximate Premium: $_____

B. Use of a $1,000 deductible for physical damage on the
late-model vehicle will result in a reduction of about
$_____.
Total Approximate Premium: $_____

C. If the 19-year-old daughter does not ever drive the latemodel
vehicle, use of the “Named Driver Exclusion” for the
daughter on the late-model vehicle will result in a reduction of
about
$___.
Total Approximate Premium: $______

D. Choosing to exclude the older vehicle from all physical
damage coverage and to apply the higher $1,000 deductible on
the newer vehicle will result in a reduction of about
$____.
Total Approximate Premium: $______
NJ Auto Insurance Scenario 2:

Commonly selected
Coverages and
Deductibles with
Alternate Medical
Expense (Personal
Injury Protection or
“PIP”) coverage.
(The premium for the
PIP portion of the
policy in the example
above is about
$______
.)
NJ Auto Insurance Scenario 3:

Commonly selected
Bodily Injury Liability
and Medical
Expense Coverages,
but the Policyholder
wishes to save
money on coverage
for damage to their
vehicles.
(The premium for the
Physical Damage
portion of the policy
in the example above
is about $_____.)

4

After considering their options, the policyholders decide that they want to retain an unlimited
right to sue, but choose other options to reduce their auto insurance costs. Using options 1A, 2A,
3A and 3B,
their total NJ Auto Insurance premium becomes approximately $______, for a savings of about
$ below the cost of the commonly selected coverage levels and deductible amounts.
Note: Because numerous factors are considered when rating an application for auto
insurance, your individual circumstances will, in all probability, result in your being quoted a
price for coverage similar or identical to the coverage levels included in these scenarios that is
different from any dollar amount(s) reflected above. Pursuant to N.J.A.C. 11:3-47.3 (c),
insurers and producers are not liable for the coverage choices made by applicants on a
properly executed NJ Coverage Selection form.

 

Selecting Your NJ Health Insurer for NJ PIP Option


 
You may be able to save money on auto insurance by opting to have your health coverage provide benefits for injuries from an automobile accident. Please consider the factors below to see if this option is right for you.