10 Factors that Affect your Auto Insurance Premium in NJ

Do you have a high auto insurance premium in New Jersey, and are wondering why it’s so high and if you can get a cheaper rate? You’ve come to the right place. This article outlines the top 10 factors that affect your auto insurance premium in NJ, and how important each factor is.

1. Where You Live

Your state and zip code is often the most important factor that impacts your insurance rate. For instance, auto insurance rates in NJ are about 17.6% higher than the national average. Here are some factors that impact how much you’ll be paying based on your state and zip code:

  • Population
  • Congestion
  • Rural vs. suburban vs. metro
  • Crime rate (stolen cars, vandalism, etc.)
  • Weather

2. Your Driving History

Auto insurance companies rate a driver’s future insurance premium based on his/her past driving record. Tickets, points, at-fault claims, violations, DUIs, etc. can have a big impact on your auto insurance premium. Depending on the severity of the claim, your car insurance premium can increase from $300 – $1,500 per year.

3. Your Level of Coverage

Of course, the higher level of coverage you have for your auto insurance policy, the more expensive your premium. You could potentially pay a difference of $1,000 per year depending on your level of coverage. Your insurance agent will advise you on what level of coverage you need at the most affordable price.

4. How Old You Are

This factor is somewhat unfair, and something that the driver cannot control. However, young drivers can pay close to $5,000 more per year on their auto insurance premium, compared to a 50+ year old driver. Why the difference? Auto insurance companies unfortunately view teen drivers as very risky.

5. Your Credit Score

Your credit score plays a factor in almost everything – from buying a car, to insuring it. Studies have shown a correlation between low credit scores and bad driving history. If you have a poor credit score, you can be paying about $1,000 more per year for your auto insurance premium.

6. Your Driving Experience

It’s common sense to assume that drivers with more years of experience are typically safer and less risky drivers. Similar to the Age factor, teen drivers with less years of driving experience will likely pay a higher premium.

7. Your Gender and Marital Status

Unfortunately for men, insurance companies tend to view men as more risky than women. As a result, men typically pay around $300 per year more than women do for their insurance premiums. Your insurance policy can also be impacted based on whether you’re single, married, divorced, or widowed.

8. Your Insurance Coverage History

If you have ever been uninsured while driving, this can also negatively impact your premium. Insurance companies look at your insurance coverage history, and will penalize drivers who have appeared to drive uninsured in the past.

9. The Vehicle Model You Drive

Your vehicle can impact your insurance premium on a few levels: the type (sports car, sedan, SUV, etc), the color, and the vehicle cost. The more expensive your car, the higher your insurance premium will be to cover it. Also, your vehicle’s safety rating may impact your premium. If your vehicle model has had a high level of accidents or claims, you might be paying a higher premium to insure it.

10. Any Discount Options

There are several auto insurance discounts that you might be able to take advantage of. Some discounts include:

  • Anti-theft device discount
  • Good driver discount
  • Good student discount
  • e-Pay discount
  • Green vehicle discount
  • Affinity discount

At the end of the day, some of these factors can be controlled or changed by you (your credit score or your driving history), and some cannot (your age or your gender). So, it’s important to focus on adjusting any factors that you can change. Garden State Central Insurance Services is an independent insurance agency that is dedicated to helping drivers find the best auto insurance coverage at the lowest cost. Request a quote or call us today at 609-587-9585 ext. 206!