NJ Auto Insurance Essex County
An informational guide on NJ Assigned Risk and NJ
Preferred Risk Automobile Insurance.
Where you live or, more precisely, where you
keep your car at night has a bearing on your chances of having an accident or
becoming a victim of theft or vandalism. That's why a vehicle owner in Newark NJ, pays a
higher rate than the owner of an identical vehicle in Vineland NJ.
Other factors affecting insurance
territory rates include time and
efficiency of police response and law enforcement, local road and traffic
conditions and the quality of local medical services. Insurers even factor in
the litigation rates in a given area, how many lawsuits are filed, go to trial,
are settled out of court, and for how much money.
Why are rates different for
different cars, even if the cars cost the same?
Vehicles are also grouped into categories
according to their chances of being damaged, vandalized or stolen. Insurance companies
generally consider the size and type of car as well as the value and the cost of
repairs which vary greatly, even on cars that cost about the same amount.
Therefore, it is assumed that a new sport utility vehicle is expected to hold up
better in an accident than a sleek sports car or a sub-compact car.
That is why you should research insurance
coverage before you buy your car. It helps you to understand the actual cost and
indicates those vehicles with good safety records. Your NJ insurance company
will ultimately reward you with lower premiums for putting safety first.
What is no-fault insurance?
- No-fault insurance is a system adopted in some
states that essentially bypasses the conventional legal procedure which finds
fault in an accident. This is the procedure by which you hire a attorney, file
suit and possibly go to court to prove the accident was the other guy's fault.
No-fault simply does away with the concept of one party or the other being at
fault--no lawyers, no court, no judge, no jury, no lengthy lawsuits against the
other party. This is considered beneficial to all taxpayers, because it
eliminates costly legal proceedings that the state must manage, and to insurance
policyholders, because it helps keep rates down.
If you are insured in a no-fault state and have
an accident, you do not have to go after the other driver. You contact your own
insurer and file a claim. Your own insurance policy guarantees you immediate
compensation for damages, medical expenses, lost wages, essential services,
rental car arrangements etc. (If these coverages are included)
The type and range of no-fault car insurance
coverage varies from state to state. What defines the limitations of no-fault
policies can differ in two important areas:
- Threshold--The type of damage or injury
or the cost of repair or recovery that triggers the need for legal action.
- Mandated--Benefit Level The package of benefits (medical, wage loss,
replacement services and other expenses) your state requires you to carry.
No. Some states, while not mandating
auto insurance, have what is known as financial responsibility laws that require
all drivers to be able to pay for any damage or injury they may cause. However,
carrying liability insurance is still the best and most affordable way for you
to meet your state's financial responsibility requirements once you know what
they are.
UM and UIM policies are offered by law in all states, including no fault
states. In fact, some states require all motorists to carry this coverage in
order to gain protection from inadequate insurance coverage of other drivers
that may not carry enough or higher limits as the majority does; i.e.,
100-300-50,000.
First, call the police to the scene to be sure all pertinent
information is properly recorded. Your nerves will be shaken right after an accident, and it helps to have a calm and knowledgeable
person walking you through the necessary details.
Then, contact your policy holder services or
claims number usually on you ID Card immediately and ask about filing a
claim. If you followed all the recommended guidelines and procedures when you
bought your policy, you should be covered within the benefits and or limitations
of that policy. Remember, your car insurance policy is designed to protect you
and anyone in your vehicle.
If the cost of your physical damages or personal injuries exceed the amount
your policy will pay for, it may be time to take legal action against the other
party. Even if you have no-fault insurance, sometimes the only way to be
compensated is to place blame and responsibility where it belongs. That is why
it is best to get a police report documenting the incident and any witnesses
statement while it is fresh in their minds. This will preserve that moment in
time and remove any room for doubt later in the legal process.
It is better to have the police report and not
really need it, than it is to need one for court and not have one because it
would have taken another thirty minutes to an hour extra at the incident scene.
Technically, in most states your insurer can
cancel your policy only if:
- you fail to pay your premium;
- you lose your driver's license;
- you are guilty of material misrepresentation during the application process
i.e., you fail to notify your insurer of a recorded violation, such as a drunken
driving, or possession of drugs or any illegal activity offense; or
- you fail to report a substantial change of risk, such as buying a new high
performance sports car to replace an old high mileage family sedan.
However, your insurer may choose not to renew
your policy for a variety of reasons.
Do you have a bad driving record? Have you received a lot of speeding tickets?
Have you ever been caught driving drunk? Not only are these
scenarios considered unsafe and illegal, they are justifiable cause for your
insurer to label you a bad risk and refuse to renew your policy. Some
underwriters may feel compelled to cancel policies after only one accident. This
does not apply to Individual States High Risk Insurance Pool policies.
Where do you live? Has the
neighborhood changed in the last few years? Have the accident or crime rates
risen noticeably? As regions are reassessed periodically, their status could
change and you could suddenly find yourself living in a higher risk area, where
your insurer's rates may not be adequate to cover losses.
Even "good" drivers can find themselves in the
position of being dropped by their current carrier. Reasons range from a couple
of moving violations, or multiple accidents, or other serious violations that
make you a high risk to situations outside your control, such as when insurers
in your state are suffering severe business losses.
That is why it is important to note that if you
are licensed to drive, by law, you are eligible for insurance. However, your
options for new coverage may be limited. Each state has created and regulates a
market of last resort for those who cannot otherwise obtain coverage. These
groups have various names, depending on the state you live in, such as
assigned risk automobile insurance plans
or the residual market, or the State high risk pool.
Regardless of the reason you were dropped or
cancelled by your insurer, you need to act immediately to get another policy.
Under no circumstance should you drive your vehicle without knowing one hundred
percent that you have current insurance. If you do find yourself in the assigned
risk residual market pool, the price may be higher but it may be your only
alternative in maintaining your freedom to drive.
The most obvious way to maintain your low risk
status is to keep a clean driving record. If you've been in an accident or two,
consider taking a defensive driving course.
Also, look into purchasing special safety and security features for your car,
such as anti-lock brakes and an alarm system, or try OnStar. Your ARAIP-NJ-PAIP
insurance producer can give you further tips on how to convince your insurer
you're a safe driver.
NJ Insurers often discount their rates in order
to encourage good driving practices and the use of safety and security
precautions. Depending on the insurance company, you can often lower your rates
from 5 to 55 percent.
Sometimes the investment you make in your vehicle is worth the discount, and
sometimes it's simply worth some peace of mind. For example, the purchase of
anti-lock brakes merits a discount from nearly every insurer, but the discount
probably will not pay for the brakes which cost several hundred dollars during
the normal life of your vehicle. Anti-lock brakes are touted, nonetheless, as a
life-saving feature and deserves serious consideration when safety is a top
priority. Insurers generally offer discounts for:
- Safety Features Anti-lock brakes, air
bags and passive restraint systems i.e., automatic seat belts.
- Defensive Driving Clean violation record, driver's education courses
for teenagers and defensive driving or accident prevention courses for adults
insurance discounts for the latter are required in some states.
- Security Systems Alarms, electronic locks, VIN etching and automotive
disabling devices.
- Changing The Driving Habits Try commuting by
public transit, using a company vehicle for
work-related travel and car-pooling.
- Formal Agreements Not to Drink and Drive The availability of a
discount for signing such an agreement varies among insurers and states, however
is a powerful idea that works.
- Buying Home Owners and Auto Policies from the Same Company If you own
a home and an automobile and you are insured by two different companies, check
into the cost of carrying both policies by one insurer. Your NJ insurance agent
or producer can give you guidance as to which insurers offer discounts. This
will always offer your the best buy, so put it in your corner when shopping for
rates
- You can also lower your insurance rates by
requesting higher deductibles, which is the amount of money you pay out of
pocket before you make a claim. Increasing your deductibles on collision and
comprehensive coverage from $500 to $750, or even $1,000, will bring your rates
down. Moreover, you may not need collision and comprehensive coverage if you
drive an older car. Ask your producer which discounts are available to you.
How does adding drivers to my
policy affect my rates?
The more people you allow to drive your vehicle
on a regular basis, the greater the chances of your vehicle being in an
accident. Teenagers are especially expensive to insure because they are the
least experienced drivers.
A driver's-ed course can help ease the burden of insurance costs since it
teaches your teenager defensive driving techniques. If your child's high school
does not offer drivers education, try to find one offered by another school or a
private firm in the area. After all, the cost of driver's-ed could be cheaper
than the extra cost of your insurance. Many insurers offer "good student"
discounts as well.
An adult's driving experience can also affect your rates significantly. Don't
assume that every adult you know has been driving since age 16 or 17 or is a
competent driver with a clean driving or insurance record. Again, taking a
defensive driving course is a good way for adults to prove they are also
responsible drivers, thus lowering their risk and their insurance premium rates.
Essex County is among
the most diverse counties in both New Jersey and the country. The county is
home to immigrants from hundreds of different nations, and American natives
of all ethnic backgrounds and cultures. The county is one of the most Italian counties in America, with nearly 50% or over of
residents in several towns of the West Essex area and in the "Pasta Triangle" (
Bloomfield,
Belleville, and
Nutley) area being of
Italian descent. Though, recently, the "Pasta Triangle" is seeing increased
Italian emigration towards the county's western towns such as
West Caldwell,
Fairfield, and
Verona; meanwhile, the
"Pasta Triangle" region is seeing diverse racial immigration from
neighboring Newark and the Oranges, and an increase of the Asian-American population. However, this emigration has mostly affected the
southern portions of Bloomfield and Belleville, with the more suburban areas of
Nutley and northern Bloomfield still traditional, functional Italian neighborhoods. The
county also has one of the highest percentages of both blacks and Hispanics in the nation, with a growing Asian population as well.
Though a majority of the county
that practices religion is Christian, the county is also among the most
Jewish
places in the nation with 76,200 Jewish
residents according to the 2002 results of the National Jewish Population
Survey.
[1] Most are concentrated in the SW Essex towns of
Short Hills,
Millburn,
South Orange,
West Orange,
Maplewood, and especially
Livingston, where the Jewish population
is 12,600 or about 46% of the township's population. Along with the other five
or six counties immediately surrounding New York City, Essex County is the main reason why New Jersey is the most
ethnically, culturally, and religiously diverse state in the country.
As of the census
2 of 2000, there were 793,633
people, 283,736 households, and 193,507 families residing in the county. The population density was 2,427/km? (6,285/mi?). There were 301,011 housing units at
an average density of 920/km? (2,384/mi?). The racial makeup of the county was
44.46%
White, 41.24%
Black or
African American, 0.23%
Native American, 3.71%
Asian, 0.05%
Pacific Islander, 6.88% from
other races, and 3.42% from two or more
races. 15.42% of the population were
Hispanic or
Latino of any race.
There were 283,736 households out of which
33.80% had children under the age of 18 living with them, 42.30% were married couples living together, 20.40% had a female householder with no
husband present, and 31.80% were non-families. 26.70% of all households were
made up of individuals and 9.60% had someone living alone who was 65 years of
age or older. The average household size was 2.72 and the average family size
was 3.30.
In the county the population was spread out with
26.10% under the age of 18, 9.40% from 18 to 24, 31.10% from 25 to 44, 21.50%
from 45 to 64, and 11.90% who were 65 years of age or older. The median age was
35 years. For every 100 females there were 90.70 males. For every 100 females
age 18 and over, there were 86.40 males.
The median income for a household in the county
was $44,944, and the median income for a family was $54,818. Males had a median
income of $41,374 versus $32,052 for females. The per capita income for the county was $24,943. 15.60% of the population and
12.80% of families were below the
poverty line. 20.50% of those under the age of 18 and 12.20% of those
65 and older were living below the poverty line.
| 1: Other Party:
Auto Insurance Bodily Injury (BI) Liability and Property Damage (PD)
coverage is Legally required in most states today. (BI & PD) Most people
understand that they need BI & PD, but they have no idea how to determine how
much coverage they need.
Try this simple question: What if your car was involved in an auto accident
tonight where heaven forbid, someone else was injured or killed? Remember,
everything you own is in the back seat of the car with you and is at risk in a
lawsuit! So, what do you think their family would sue you for? $15,000? $25,000?
$100,000 or even maybe a Million dollars! Where would you get the money to pay
them?
Perhaps the Equity in your Home would help? How about your Savings and/or
Investments? You could even have up to 25% of your wages attached to pay the
award in most states! Are you prepared to sacrifice everything you own to pay an
award due to this accident? If not, read on for how to choose the auto insurance
coverage you need.
2: You and Your Family:
Now let's turn the above accident around. For some unfortunate reason, you or
a loved one is the one who is injured or killed in an auto accident. Where would
you get the money if the person who hit you did not have auto insurance or not
enough auto insurance? Medical bills can be covered if you have health insurance. But health insurance doesn't cover
loss of life, pain & suffering or permanent disability.
Maybe you have a life insurance
policy through your employer or your own individual life policy. Is the benefit
amount sufficient to cover your family if your loved one is killed? But even if
you have life insurance, what pays for the misery, the pain & suffering, maybe
the fact you or a loved one can't walk or use their arms again?
You might have a disability insurance policy through your work if you're
lucky or had good financial advice. But disability insurance doesn't pay for
loss of life, pain & suffering, permanent loss of your legs, arm or hand.
The only coverage that pays for these things is a part of an auto insurance
policy known as Un/Under-insured motorist coverage. You can only buy as much
coverage here as you have in Liability coverage. Your auto insurance agent
should be able to help you determine the exact amount you need.
3: Your Car
Comprehensive and Collision Coverage are the third part of an auto insurance
policy and are sometimes referred to as ?Full coverage.? Basically the
difference is this: If you run into the tree you are covered by Collision
coverage. If the tree runs into you (hypothetically of course), then you are
covered by comprehensive coverage. Comprehensive also covers broken windshields,
fire, theft and vandalism. The higher deductible (risk) you take here, the lower
the premium. Use the savings here to purchase higher limits in the coverages
that protect your assets and your family.
The bottom line to determining proper auto insurance coverage is, of course,
the money available in your household budget. An excellent place to start in
determining the proper auto insurance coverage for your family is to meet with
your local auto insurance agent.
Most cut-rate companies concern themselves with one thing only: Price. Tell
them what coverage you have and they'll see if they can give you the same
coverage for less. You become the insurance professional. If this is the only
need you have then that is ok. If not, you need to seek the advice of a
professional to help you determine the proper amount of coverage you need and
how best to accomplish it. | |
NJPAIP Services , NJPAIP.ORG,
NJCAIP Commercial Auto Insurance (856) 863-5654 NJ Zip Codes NJ zip codes
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