Auto Insurance Rate Increases in New Jersey Up 20 Since 2011 from www.valuepenguin.com Auto Insurance in NJ: Everything You Need to Know Auto insurance is one of the most important investments you can make as a driver. It protects you financially in case of an accident, theft, or damage to your vehicle. When you live in New Jersey, there are certain requirements you need to meet to be legally allowed to drive. In this article, we will be discussing everything you need to know about auto insurance in NJ, including the types of coverage available, the cost of insurance, and factors that affect your premiums. Types of Coverage Available There are several types of coverage available in NJ, and each one offers different levels of protection. The most common types of coverage include: 1. Liability Coverage: This type of coverage is required by law in New Jersey and covers damages you may cause to other people's property or injuries they may sustain in an accident where you are at fault. 2. Collision Coverage: This type of coverage pays for damages to your vehicle in case of a collision, regardless of who is at fault. 3. Comprehensive Coverage: This type of coverage pays for damages to your vehicle that are not caused by a collision, such as theft, vandalism, or natural disasters. 4. Personal Injury Protection (PIP): This type of coverage pays for medical expenses and lost wages for you and your passengers in case of an accident, regardless of who is at fault. The Cost of Auto Insurance in NJ The cost of auto insurance in NJ can vary depending on several factors, including your age, driving record, location, and the type of vehicle you drive. According to a study conducted by the National Association of Insurance Commissioners, the average cost of auto insurance in NJ is $1,309 per year. However, this amount can increase significantly if you have a poor driving record or if you live in a high-crime area. Factors That Affect Your Premiums Several factors can affect your auto insurance premiums in NJ, including: 1. Age: Young drivers are usually charged higher premiums because they are considered high-risk. 2. Driving Record: Drivers with a history of accidents or traffic violations are considered high-risk and are charged higher premiums. 3. Location: Drivers who live in high-crime areas or areas with high rates of accidents are charged higher premiums. 4. Type of Vehicle: Vehicles that are more expensive to repair or replace are charged higher premiums. 5. Credit Score: In NJ, insurance companies are allowed to use your credit score to determine your premiums, so having a good credit score can help you get lower rates. Conclusion Auto insurance is a must-have for anyone who drives in New Jersey. It not only protects you financially but also ensures that you comply with the state's legal requirements. In this article, we discussed the types of coverage available, the cost of insurance, and factors that affect your premiums. By understanding these topics, you can make informed decisions about your auto insurance coverage and get the best rates possible. Summary: Type of Coverage | Description --- | --- Liability Coverage | Covers damages to other people's property or injuries they may sustain in an accident where you are at fault. Collision Coverage | Pays for damages to your vehicle in case of a collision, regardless of who is at fault. Comprehensive Coverage | Pays for damages to your vehicle that are not caused by a collision, such as theft, vandalism, or natural disasters. Personal Injury Protection (PIP) | Pays for medical expenses and lost wages for you and your passengers in case of an accident, regardless of who is at fault.
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