What is high risk auto insurance NJ PAIP?
NJ Assigned or NJ High Risk Car Insurance mechanism for New Jersey drivers
with 7 or more points.
MID TERM Non Pay Cancellations also qualify.
Established October 1, 1992 pursuant to N.J.S.A. 17:29D-1 and implemented
by N.J.A.C. 11:3-2.1, NJ PAIP is the residual market mechanism
for New Jersey personal automobile insurance risks not eligible in the New
Jersey voluntary Car Insurance marketplace.
To find out how many points you have to qualify for a
NJ PAIP Policy visit the NJ Motor Vehicle Commission
office nearest you or order your NJDMV-NJMVC abstract at this link
NJDMV-NJMVC Abstracts
or phone 609-292-7500.
The NJ PAIP eligibility points you may have may be all moving violations
or a combination of
Insurance Points
and NJ MVC Points. They are added together for your total NJ PAIP eligibility
points.
NJ PERSONAL AUTOMOBILE INSURANCE LAW.
All private passenger vehicles are mandated by NJ State law to maintain automobile
liability insurance, N.J.S.A. 39:6A et seq.
Personal auto coverage may be obtained on a
voluntary basis or through
the New Jersey Personal Automobile Insurance Assigned Risk Plan. (PAIP)
Rate Filing Requirement - N.J.A.C. 11:3-16
Eligible Persons Regulation N.J.A.C. 11:3-34
Standard/Nonstandard Regulation N.J.A.C. 11:3-19
Underwriting Guidelines N.J.A.C. 11:3-35
Automobile Insurance Defined
Auto insurance, is probably the most common form of insurance and may cover both legal liability claims against the driver and loss of or damage to the insured's vehicle itself. Throughout most of the United States an auto insurance policy is required to legally operate a motor vehicle on public roads. In some jurisdictions, bodily injury compensation for automobile accident victims has been changed to a no fault system, which reduces or eliminates the ability to sue for compensation but provides automatic eligibility for benefits.
How Does Where I live in New Jersey affects my premium?
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 is 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.
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.
What steps can I take to reduce my NJ Car Insurance rates?
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.
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 NJPAIP Certified Producer which discounts are available
to you.
Be careful not to violate any vehicle lease or finance agreement that may
specify in writing the insurance coverage's that you must have.
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 education 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 could
be cheaper than the extra cost of your insurance. Many insurers offer "good
student" discounts as well. Save the certificate of completion as you will
want to submit it with your insurance application.
An adult's driving experience may 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.
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