What Affects Insurance Rates?

Since 2003, New Jersey has had a unique points system that helps insurance companies determine your rates. This is not the same as the points system on your driver’s license, although it is somewhat related, since you’ll get insurance points and license points for poor driving habits. You have a right to purchase auto insurance in New Jersey no matter what, but if you have more than seven points, you might have to apply for special insurance based on your poor record. This insurance is usually only available with a Basic plan and it can be very expensive.

Right out of the gate, you get three insurance points for being an inexperienced driver. While many teens might not deem this as fair, statistics show that young drivers are more likely to have accidents and, in turn, make insurance claims. In addition, you get points for having bad credit (although you cannot be denied for this alone) and for having a poor driving record. This is where driving school comes in. If you take a New Jersey defensive driving class, you can potentially knock two points from your insurance rating!

Your driving record is extremely important. Just one New Jersey speeding ticket could increase your rates by hundreds of dollars every year and a New Jersey DWI/DUI infraction could put your rates through the roof. Other things that won’t necessarily give you points but which will affect your rate in many cases include the following:

• Your sex (males are statistically more likely to get into an accident)

• Your car’s make a model

• You car’s age

• The distance you drive to work every day

• Your location