Rating Factors Considered In Auto Insurance New Jersey Contracts
If you are coming up on your auto insurance New Jersey renewal
, it is important to understand what to look for on your policy declarations page to ensure you are being rated accurately. There are several different rating factors considered to calculate your auto insurance premiums. From your driving record and driving experience, to vehicle usage and mileage, each factor plays a role in how high or how low your premiums are. Understand what to look for in terms of your insurance rating and review your upcoming renewal with your auto insurance agent to see if you qualify for lower premiums.Vehicle Safety
While you are driving record is extremely important, your vehicle's safety record and claims statistics are also extremely important to the underwriters and actuaries of an insurance company. Most drivers assume that the age of their vehicle is what makes their premiums so high. This is actually the farthest thing from the truth. A vehicle is rated by the vehicle's symbol which calculated by the Department of Insurance in the state. The symbol of the vehicle will factor in how much the vehicle costs to repair, how many accidents the model is involved in on average per year, and how much damage and injury the vehicle caused on average the previous year. In addition to this, the vehicle will be rated based on airbags, seat belts, and anti theft devices. Be sure that your auto insurance New Jersey policy is rated properly in terms of the vehicle safety features.
Vehicle Usage and Mileage
Vehicle usage is used to determine how much risk you pose to the company. The way in which you purchase your vehicle and the amount of miles you drive on an annual basis are both extremely important factors in determining your insurance premium. Usage can be categorized in three different ways: commute, business and pleasure. If you drive your vehicle for commute or business use, you will be charged higher premiums because you are driving during hours where traffic and stress levels are high. If you are driving for pleasure use, you will be rated in a lower rating band. Mileage is also determined in the rating. While the average annual miles in New Jersey is approximately 12,000, drivers who drive less may be eligible for low mileage discounts. If you have changed employment or have relocated and drive less, review the rating of your policy.
The key to keeping your policy accurate and up to date is to review it annually. By dedicating just 30 minutes to reviewing your insurance policy, you will verify that all of your information is accurate and you are being charged the right premiums. Ask your agent about discounts you may not be aware of and lower your premiums if possible.
by: Brenda Fullwerth