If you are a driver in New Jersey or anywhere for that matter, you know how complicated and confusing it can be to file a car accident claim, switch car insurance companies or simply add a person on to your policy. To help make things easier when dealing with your auto insurance company, we have listed some helpful tips for New Jersey car insurance customers below. Understanding these items can not only save you a lot of time and money on your New Jersey auto insurance, but it will also help you be better prepared in the event of a car accident.
1. How your New Jersey car insurance company determines your car's value after it has been declared a "total loss"
When totaling your car, your insurance company's goal is to help you find a new car within the same market. To do this, car insurance companies use three different methods for determining the value of the car declared a total loss, such as:
If the car insurance company is unable to find a car from within your area, they may have to find a replacement car outside your zip code, which can dramatically affect your car's true value. For instance, if you reside in a big city within New Jersey, such as Newark, Jersey City or Elizabeth, then the cost of replacing your car will likely be more expensive then if you lived in a suburb or more rural part of New Jersey.
2. Your car insurance company may be required to pay for sales tax and registration fee for a new car
New Jersey requires all car insurance companies to pay for your sales tax when you replace your totaled car with a new or used car. You must make the request and not assume the car insurance company will pay upfront. The tax will be calculated based on the pre-accident value of your car. If you buy a higher priced car as the replacement, the car insurance company will still go off the price of the totaled car.
3. Your credit history may determine your insurance premium
In the State of New Jersey, the use of your credit history to determine your insurance premium is permissible. It may be used to determine your payment options, be them monthly, quarterly, or having to pay the entire premium at once. Your history may also be used by insurance companies to create an "insurance risk score". This score is used as a factor in determining your auto insurance rates.
Pay your bills on time and try to improve your score if it is less than ideal. In doing so, you are helping to improve your credit history in the long run and you may save money on your car insurance premium.
4. Adding a teen to your car insurance policy
Most insurance companies do not require you to add your teen to your car insurance policy when they are a certain age, only when they receive their license. On the other hand, if you are in a high-risk pool, you may be required to add them when they receive their driver's permit. If you forget to add your licensed teen, and they are involved in a car accident, they will be covered; however, your insurance company may charge you back premiums from the date your teen received a license.
For your New Jersey teen to begin the process of receiving their license, they must complete the following steps:
- Pass the Driver Education Course and receive their Driving Eligibility Certificate
- Present the Certificate to get the learner's permit
- Practice driving with a parent or guardian supervisor
- Receive their provisional license
- Practice driving without a supervisor
- Receive basic driver's license on 18th birthday
This process is for first time drivers who are at least 16 years old. To ensure that the teen driver receives ample time to practice and to offset the number of accidents that involve teen drivers each year, New Jersey has different privileges for each provisional license:
Learner's Permit
The teen must be enrolled in a driver education course and be at least 16 years old to receive their learner's permit (registered GDL permit). A parent or guardian must sign for the teen's driving permit after proof of residency and social security number have been verified by the DMV. Once that has been done, a manual will be given to the teen to help them prepare for the written portion of the driving test. During the time of the written test, New Jersey teens are also required to take and pass a vision test. Upon completion of the tests, teens will need to complete a behind-the-wheel training class. Once the teen has passed the class, the instructor or teen will need to go the DMV and have their permit validated for 6 months of supervised training with a licensed parent/guardian or qualified licensed adult.
Provisional License
Teens are eligible for the provisional license when they are 17 years old and after they have completed 6 months of practice driving with a supervised driver. After both of these requirements have been met, teens are eligible to schedule a road test with their local DMV. At the time of the test, New Jersey teens will need to provide the DMV with their validated GDL permit, a registered, inspected and insured vehicle, and a New Jersey licensed driver. Once they have passed the exam, they will need to go to any MVC Agency to receive their 1-year GDL provisional license. The provisional license allows New Jersey teen drivers to drive without supervision between the hours of 5:00 a.m. to 12:00 a.m.
Basic Driver's License
New Jersey teens are eligible for their basic driver's license if they are at least 18 years old, have fulfilled all of their GDL permit requirements, passed the road test, and have had at least one year of driving experience with a valid permit. Once a New Jersey teen earns their basic driver's license all restrictions are lifted and they can drive unsupervised at any time.
To learn more about New Jersey teen driver laws and regulations, please visit the New Jersey DMV.
5. Personal property in your car is not covered by your auto insurance
Stolen or damaged items from within your car are not covered by your auto insurance policy. Most policies will only cover smaller and less expensive items like CDs, but if you carry more expensive things, you will want to consider adding a rider to your home insurance policy. Keeping photos or video of your items is also a good idea. If something is stolen from your car, you may have to file a claim on your home insurance if you do not have a rider in place.
Even though most states typically have similar laws in place for car insurance, they do not typically have similar car insurance rates. That's because New Jersey car insurance rates are influenced by New Jersey's geographic location and its state laws. With that being said, it is always a good idea to shop around and compare the rates of various auto insurance companies. To assist you in the process Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the cheapest auto insurance coverage for your budget.