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If you are looking for a good deal on your auto insurance in New Jersey, you will need to consider which companies give you the best value based on your circumstances. If you have a low credit score or have had accidents, you might want to learn how to find high-risk auto insurance in New Jersey and locate the companies that will get you the coverage you need at the price you want.
New Jersey Personal Automobile Insurance Plan Explained (NJ PAIP)
If you have had a traffic violation, accident, or anything that puts you in the high-risk category, you can still get covered for car insurance. You can take out the state minimum coverage under the New Jersey Personal Automobile Insurance Plan. As QuoteWizard explains, it is a policy put in place to ensure that high-risk drivers can obtain legal minimum insurance policies.
Who Is Eligible for a New Jersey Personal Automobile Insurance Plan
There are some basic criteria to qualify for the NJ PAIP coverage. If you are simply not happy with the price you were quoted by companies, you cannot take advantage of this offer. You need to be able to prove that you have tried to obtain insurance twice in the past and were declined.
There are different reasons why an insurance company might deny your coverage. If they think you are too high of a risk, it might be because of how you drive, your credit rating, or because you failed to pay your monthly installments. If the case is less serious, they will offer you insurance at a significantly higher rate, but if it is too much risk, they can refuse to cover you.
Violations and Car Insurance: All You Need to Know
To get your insurance application declined, you will need a certain number of points in your license. These all add up and are assessed by the insurance company. There’s nothing you can do to make the insurer change their mind; they are for-profit companies and don’t want to take financial risks.
This is the breakdown of the points added to your license for each violation:
- Not stopping at the red light or passing a vehicle and yielding a pedestrian can get you two points.
- Carrying out an improper U-turn will get you three points.
- Reckless driving will cost you five points.
- If you injure someone during an accident and leave the scene, you will get eight points on your license.
All these points add up, and if you have too many, you can be declined insurance by many companies. If this happens, you can apply for NJ PAIP coverage.
Who Is a High-Risk Driver?
There are different criteria companies use to determine your risk level. The reasons why you might not be “worth the risk” for insurance companies are explained by ValuePenguin.
First of all, if you cause too many accidents and make too many claims, it might not be worthwhile for the company to insure you and take on the risk.
Secondly, if you have no credit or bad credit, they might not want you as a customer.
Finally, not paying your car insurance will increase your chances of getting declined insurance.
It is important to note that you don’t necessarily need to be the worst or most reckless driver to be classed as a high-risk motorist. The category includes people who:
- Are older.
- Have poor credit.
- Are new to driving.
- Have had a lapse in their insurance coverage.
- Drive a powerful muscle car or luxury vehicle.
If you are placed in the “assigned risk” pool after being declined car insurance, you will be able to apply for NJ PAIP coverage. You will have no choice about which company to go with, and the cost will be fixed and non-negotiable. You can find out more about the JN PAIP policy by getting in touch by phone at 856-352-2349 or visit the website.
Different Levels of Car Insurance Coverage in New Jersey
You can obtain the following types of insurance policies in New Jersey:
- Basic coverage limit of $15,000 per person.
- Liability for bodily injury for $30,000 per accident or $15,000 per person per accident.
- Liability for property damage up to $5000 per accident.
If you choose the Standard policy under the PAIP insurance, you will be able to get the following coverage:
- Bodily injury liability coverage from $15,000 per person or $30,000 per accident.
- Property damage liability from $5000 per accident.
- Personal injury protection from $15,000.
- Uninsured/underinsured driver coverage.
- Collision coverage.
- Comprehensive coverage.
You don’t have to take out more than the minimum level of insurance required by the state, but it is recommended that you assess your needs to ensure you have enough insurance.
Auto Insurance Payment Plans for NJ PAIP
You will have two payment options when you take out an NJ PAIP insurance designed for high-risk drivers. One of them is the Advanced Premium Payment option. It allows you to make a full payment upfront. The other payment option is Installment Payment. You will have to put down a 30 percent down payment on your insurance and can pay the rest of the amount in nine installments.
How To Get a PAIP Policy
After you have been declined insurance, you will need to get a NJ PAIP policy to comply with the law and get an insurance policy certificate. As NerdWallet explains, SR-22 and FR-44 forms are needed to prove that you have adequate coverage to drive in the state of New Jersey. The forms are filed to the state’s motor vehicles department.
If you want to get a policy and you are a high-risk driver, you might want to give GEICO or Progressive a try. These auto insurance companies might still accept you on a policy and offer you a standard level of coverage.
Alternatively, you could try car insurance brokers such as Freeway Insurance or Good2Go. The downside is that brokers charge you a fee for finding a suitable high-risk auto insurance cover.
Even if you are a high-risk driver, you can still obtain adequate coverage to legally drive in New Jersey. You just have to do your research.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Car Insurance | Car and Driver
High-Risk Auto Insurance: Everything You Need to Know | Car and Driver
New Jersey Car Insurance Laws: Everything You Need to Know | Car and Driver
What is the New Jersey Personal Automobile Insurance Plan (NJ PAIP)? | QuoteWizard
New Jersey Personal Automobile Insurance Plan (NJ PAIP) | ValuePenguin
The Best High-Risk Auto Insurance Companies | NerdWallet
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