Free New Jersey Insurance Quotes - Compare & Save Today
New Jersey Insurance FAQs
FREE Quotes.  Lowest Rates Available.

New Jersey Insurance FAQs (Frequently Asked Questions)

This page addresses many of the questions New Jersey insurance agents are asked by their customers. All information provided is for informational purposes only. In order to get the best advice for your particular situation request your FREE Quote from a New Jersey insurance professional.

Homeowners Insurance Health Insurance Life Insurance Long Term Care Insurance

Auto Insurance

Condo / Co-op Insurance

Renters Insurance

NJ Auto Insurance FAQs

  • I've had an auto accident that was NOT my fault. Will my auto insurance rates go up?
    In the majority of cases your auto insurance premiums will not increase due to an accident that is not your fault. However some insurance carriers may place you in a higher tier due to increased activity on your driving record. Because each individual case is different please contact us for a free NJ auto insurance quote tailored to your particular needs.

  • I've had an accident that was my fault. How is this going to affect my car insurance rates?
    Having an auto accident for which you are at fault will usually result in a premium increase. However did you know that you can offset this increase by choosing certain options on your car insurance policy. For example, you can reduce the cost of the collision portion of your policy by up to 50% by simply raising your deductible.

  • Where is the nearest NJ DMV office to me?
    Our NJ Insurance Resource Center has the answer to this and many other NJ DMV related questions.

  • My teenager recently obtained their driving license. How will this affect my New Jersey car insurance premium?
    Although adding a teenage driver to your car insurance policy will probably result in a premium increase there are many options to save money to help offset this increase e.g. good student discount and driver training discount. A friendly, professional independent agent in your area will be happy to explain these and other cost saving options when you submit your free no-obligation car insurance quote.

  • I just got a speeding ticket. Will the penalty points affect my auto insurance rates?
    Contrary to popular belief many insurance carriers will not automatically raise your rates or premium for a speeding ticket. Did you know that in most cases there is no rate increase in New Jersey for your first 2 point speeding ticket. Ask your insurance agent about the New Jersey forgiveness rule.

  • Why do New Jersey auto insurance premiums seem so high?

    In actuality, the protection you receive when you purchase a New Jersey auto insurance policy is some of the best protection available in the United States. Most auto insurance policies that are sold in New Jersey contain very good limits of coverage that protect yourself as well as your car. With the no fault system, your medical bills are covered up to your policy limits regardless of who is at fault in the accident. This guarantees that you will never be left without important medical protection should you be injured in an auto accident. In some cases additional limits of coverage can be purchased at a reasonable cost.

    Your New Jersey auto insurance policy protects not only you and your automobile but it also protects you from a suit that may be brought against you if another party is injured in an accident which has been determined to be your fault. There is also mandatory UN-insured and under-insured motorist protection coverage that protects you in the event you are injured or your car is damaged by an UN-insured or under-insured driver.

    Due to recent state law changes there are now more auto insurance carriers who have entered the NJ auto insurance market. This allows us to give you the best possible protection at the lowest possible price.

    All in all, New Jersey has some of the most cost effective auto insurance protection available anywhere. If your policy is due for renewal or if you are interested in seeing if you can save money over your existing auto insurance policy then take a moment and click here for a fast free auto insurance quote.

  • How can I save money on my auto insurance?
    Check out our 12 Ways We Can Help You Save When Buying Auto Insurance page. It has some invaluable advice and suggestions.

  • What is Insurance Scoring?

    Insurance scoring is one of the many tools that some insurance companies use to appropriately match price to insurance risk. Your insurance score is developed from a formula that weighs and measures credit information such as number of collections, bankruptcies, your outstanding debt, your credit history, the number of new applications for credit and types of credit.

    Your insurance score is an additional factor used to develop your premium. Other factors, such as motor vehicle record, annual miles driven, type of car you own, and application information are also used to develop your New Jersey auto insurance premium rate. Insurance scoring is just one item insurance companies use to ensure that you get the right rate based on your personal and unique circumstances. Not all companies use insurance scoring.

  • What does my credit have to do with how I drive?
    An insurance score, considered with other factors has been shown to provide a clearer picture of your potential auto insurance risk. Studies have shown that people who are responsible with their money also tend to be more responsible behind the wheel. Insurance scoring alone cannot determine your level of risk, but it does provide additional information that some companies use to determine the right price for your auto insurance policy.

  • What is an auto tier?

    In the State of New Jersey most auto insurance carriers use a tier system when calculating the cost of your auto insurance premium. The tier system allows insurance carriers to charge different rates based on your individual criteria.

    A general rule of thumb is the higher the tier, the more expensive the auto insurance premium.

    For example, a driver in New Jersey who has driven less than 3 years will generally be placed in a higher tier than that of someone who has been driving for more than 3 years. Other examples of factors that affect what tier you are placed in are driving history, type of vehicle and premium payment history.

    Tier levels may differ between insurance companies. Being placed in the wrong tier could result in you paying a higher premium than necessary. We will identify and explain what auto tier you are presently in. Please take a brief moment to submit a quote request and allow a professional and courteous independent New Jersey insurance agent the opportunity to ensure you are being rated in the proper New Jersey auto insurance tier.

  • Where can I get a list of penalty points for moving violations in New Jersey?

    Please click here for a list of NJ Moving Violations and Penalty Points

  • I am moving to New Jersey from out of state. Will any violations or accidents that I got when I lived in the previous state transfer to my NJ driving record?

    The answer in most cases is yes. Most out of state moving violations and just about all chargeable accidents will follow a driver when he moves from another state to New Jersey. Some moving violation from other states may not be considered for points here in New Jersey while others that were not charged by the previous state may be charged here. The best way to know for sure is to obtain a motor vehicle abstract of your driver's license both from your previous state and here in New Jersey.

    If you were considered at fault in an auto accident in another state then that accident will likely "follow" you here to NJ and this could affect the price you pay for New Jersey auto insurance. When you submit for a quote on your auto insurance here at a local, friendly insurance professional will contact you with a courteous explanation to any questions you may have regarding your driving record and the effect it could have on your insurance rate.

  • What is my New Jersey Drivers Abstract and how can I obtain a copy?

    A New Jersey drivers abstract (otherwise known as a driver's history) is a report of moving violations and accidents that you may have had and usually covers the previous five years. It is an excellent idea to order an abstract as it may contain information about your New Jersey driving record that you otherwise may not have been aware of. In some cases, violations that you thought were dropped or removed may still be showing up on your record and could affect the rate you are paying for car insurance.

    A driver's abstract is an excellent information tool you can use when you are purchasing auto insurance as it will assist your insurance agent is accurately quoting your premium. It is easy and inexpensive to order your New Jersey driver's history. You can visit for instructions on how to order your abstract. For help with understanding the information shown on your New Jersey drivers abstract please feel free sumbit a free, no-obligation auto insurance quote request and a licensed, local professional insurance agent will contact you to answer any questions you may have about your driving history and how it may impact your New Jersey auto insurance rate.

  • Will taking a defensive driving course save me money on my New Jersey car insurance?

    Many insurance companies operating in New Jersey do offer a discount upon successful completion of an approved defensive driving course (also referred to as a Safe Driving Course). In many cases a discount of 5% can be gained by taking an approved defensive driving course. New Jersey has some of the highest car insurance rates in the country so taking a safe driving course is one step you can take immediately to help reduce the cost of your NJ car insurance. In many cases the certificate can only be applied at the time of renewal and the discount is available for no more than 3 years from the date you completed the defensive driving course.

    The New Jersey Department of Banking and Insurance maintains a list of schools offering approved safe driving courses. Click here to view the list of approved NJ defensive driving schools

  • Are insurance points and New Jersey Motor Vehicle points the same? Will points increase the cost of my auto insurance?

    In New Jersey, any driver who is convicted of a moving violation is assessed motor vehicle points for each conviction in accordance with the NJSA point schedule. These points will show up on your New Jersey driving record. In many cases when a driver is convicted of a moving violation, insurance companies can also assign points and impose surcharges on their policies. These surcharges will most likely result in an increase in the cost of your auto insurance.

    Moving violation points and insurance surcharge points are usually the same. For example, if you are convicted of a 4 point moving violation, you will also get 4 insurance points. There are some circumstances in New Jersey where you will not actually get any moving violation points but you are subject to New Jersey insurance surcharge points. An example would be if you are found to be at fault in an accident where the pay out is $1,000 or more. In this case you will not receive any New Jersey motor vehicle points but you will receive 5 insurance surcharge points.

    Another example would be if you are convicted of a DWI here in the state of New Jersey. You will not receive any motor vehicle points for your NJ DWI conviction but you will receive 9 insurance surcharge points. Because not all circumstances are the same, it is recommended that you check with your local New Jersey Motor Vehicle office to determine whether you do have any motor vehicle points (see question #13 above). Even with points on your driving license there are still steps you can take to help reduce the price of your auto insurance. For a continued courteous explanation on insurance points and a competitive free price quote on your auto insurance, please click here and a local, professional NJ insurance agent will be glad to get back to you and help you with any further questions you may have.

  • How do I change my auto insurance company?

    Competition amongst auto insurance companies is increasing in New Jersey. This is great news for consumers for when insurance companies compete with each other, they usually offer competitive premiums and discounts to attract you as a new customer. The New Jersey Department of Banking and Insurance welcomes solid and financially stable insurance carriers into our state as this gives New Jersey drivers more choices when seeking an auto insurance quote.

    It is easy to change auto insurance companies here in New Jersey. Once you have chosen the new auto insurance company you would like to switch to, simply start the new coverage with the new carrier then contact your former carrier and notify them that you have changed companies.

    In most cases it is recommended that if you are going to change your auto insurance carrier that you do so upon your renewal as this allows you to maintain your renewal date each and every year. Some auto insurance carriers will impose a small, short rate penalty if you cancel coverage with them prior to your renewal date (mid-term) so be sure to check this out first.

    Shopping around for auto insurance can be an educational experience as you will be able to review and learn about important coverages that are available to you. Prices with auto insurance companies can vary in large amounts so it is important that you shop around for the best coverage, service and pricing. Many people are concerned with buying cheap auto insurance in NJ but it also important to get the best advice for your auto insurance needs. You can obtain a friendly, personalized, no obligation price quote from a professional insurance agency in your area by filling out this simple NJ car insurance quote request form.

  • I am moving in New Jersey to a different zip code. Will the cost of my auto insurance change?

    In most cases, the town or city you live in does have an effect on your auto insurance rates. Location plays an important part in determining auto insurance premiums. The law allows insurance companies to divide New Jersey into rating territories and each insurance company defines its territory in a different way. A busy town with higher traffic volume may have higher insurance rates then a town with very little traffic. A city with a higher percentage of auto theft may again have higher insurance rates then a city with a low percentage of auto thefts. If you are planning a move to a different town or city, it would be advisable to contact your local insurance professional so that they can help you determine whether your auto insurance premium may increase or decrease based on your move.

    You can easily notify the NJ Motor Vehicle Commission (MVC) of a change of address through their website. They will also mail you new address stickers for the back your current NJ license and registration. NJ DMV Change of Address Form - Click Here

  • Am I covered if I am hit by an un-insured or under-insured motorist?

    Just about all insurance companies offer coverage to protect you in the event you are hit by a motorist who has no insurance ( Uninsured ) or by a motorist who has very low coverage ( Underinsured ). If you were hit by a motorist who has failed to maintain auto insurance coverage, it would not be fair to you to be responsible for your own expenses, especially if the accident were not your fault. Unfortunately, there are many people who drive without auto insurance, even in states, like New Jersey, where auto insurance is mandatory.

    Uninsured Motorist Coverage
    You can purchase Uninsured Motorist Coverage on your auto insurance policy at a very reasonable price. In most states, Uninsured Motorist Coverage is mandatory thus you will automatically have this coverage on your policy ... BUT .... most mandatory Uninsured Motorist Coverage is set at a very basic level. This should be increased to match the liability limits of your policy. It usually cost very little money to increase the limits of your Uninsured Motorist coverage.

    Underinsured Motorist Coverage
    You may also be hit by a driver that does have coverage but at a very basic or low level. The damages that the motorist can cause to you can easily exceed the limits of his policy thus you can use the Underinsured Motorist Coverage portion of your policy. If the motorist that hits you is Underinsured (not enough insurance ), you can protect yourself by making up the difference through your Underinsured Motorist Coverage .... BUT AGAIN .... most mandatory Underinsured Motorist Coverage is set at a basic limit so it is important that you increase this portion of your policy to a limit that will protect you better.

    For more information on this topic and whether putting a claim against your the uninsured motorist portion of your policy will increase your rate please ready our latest article on Uninsured Motorist and Underinsured Motorist Coverage – important things to know on your auto insurance policy.

[Back To Top]

Note: NJ Homeowners Insurance FAQs - Click Here

NJ Condo / Co-op Insurance FAQs

  • I believe some of the money I pay in maintenance fees covers the insurance on my condo / co-op, why do I need my own policy?

    In most cases, the master insurance policy that is provided by the maintenance company of your condo/co-op association covers the building "up to the walls in your unit". It is the responsibility of the unit owner to provide coverage for the fixtures such as tiles, counter tops ,bathroom fixtures and his or her own personal contents such as furniture, electronics and clothing.

  • Does a condo / co-op policy cover items that I might take out of my unit such as a camera, luggage or other personal items?

    Yes. Most condo/co-op insurance policies will protect you if your personal items are stolen even when these items are away from your premises.

  • I share common walls with other unit owners in my building, if a pipe breaks causing water damage would a condo / co-op policy cover me?

    Some associations state that they are responsible for this type of damage while others state that they do not cover pipes and water damage. By having your own condo/co-op insurance policy, your claims adjuster will in most cases ask to see the by laws of the contract of your association to determine whether the coverage would come from the association's insurance or your own policy. As you can see, it is very important to obtain you own condo/co-op insurance coverage to protect yourself from unfortunate circumstances that can arise.

    Please feel free to fill out our easy Condo Insurance Quote Request Form and an experienced NJ insurance professional will be glad to give you more information on this most important coverage along with a fast free no-obligation price quote.

  • Is Condo/co-op insurance expensive?

    Condo / co-op insurance is not very expensive and usually costs less then a homeowner insurance policy. In most cases, excellent coverage can be obtained for under $500 per year. Most policies can also be paid on an installment plan.

  • What should be considered when buying Condo Association Insurance?

    For more on Condo Association Insurance - click here

[Back To Top]

NJ Renters Insurance FAQs

  • If items are stolen out of my car away from the premises I am renting will they be covered?

    Yes. Most renters policies will cover your personal belongings even if they are away from your premises such as in a car or while on vacation.

  • Am I covered if a pipe breaks in the building where I rent and causes water damage to my property?

    Yes. In most cases your renters insurance company will pay for the damage caused to your personal belongings or furnishings due to a broken pipe. Your insurance carrier may pay you for your loss and then subrogate (recover) the monies they paid out from the responsible party.

  • Can I add jewelry coverage to my renters policy?

    Yes. it is a good idea to add a jewelry endorsement to your policy that will cover you for many losses pertaining to your jewelry such as theft, loss of diamond in a setting and even if you simply lose your jewelry.

  • My fiancee and I are not yet married. Can we both be covered under a renter's policy?

    Yes. Most insurance carriers will list both fiancees as named insured's. A simple name change (if applicable) can be made once the both of you get married.

  • My monthly expenses are high enough and I don't know if I can afford to purchase renters insurance. How expensive is renter's insurance?

    Renter's insurance is very affordable. The price of a renter's policy is usually based on the amount of coverage you are looking for. In most cases, a policy offering excellent coverage can be purchased for less then $300 per year. (that works out at less then $1 per day). Please feel free to fill out the simple NJ renters insurance quote request and a local, friendly insurance professional will contact you with a free no-obligation price quote.

[Back To Top]