Factors That Affect NJ Car Insurance Rates
Legally, car owners are required to carry a certain amount of minimum insurance. However, the sky-high NJ car insurance rates put a hole on your household budget and force you to rethink your insurance strategy.
In this article, we’ll give you a rundown on some of the factors that most insurance companies use to set NJ car insurance rates. Knowing what affects your rate is beneficial as it will help you make an informed decision and keep the costs down.
So What Affects NJ Car Insurance Rates?
Age and gender
In most cases, young men usually incur higher NJ car insurance rates as compared to young women. This is because more male teenagers have been involved in car accidents than female teenagers.
Older men, on the other hand, have better rates than older women but the difference in premium is usually not drastic.
Your driving record
If you have received any tickets, have been in an accident or have previously made an auto insurance claim, chances are good that you’ll be paying more than those who are accident-free for several years.
If you driving record is bad enough, some insurance companies may refuse to give you insurance at all. So, maintain your good driving habits and always be vigilant
Generally, larger cars are safer than smaller cars when it comes to accidents. Armed with this information, we can expect that larger cars have lower premiums as compared to smaller cars.
A good credit score often translates to lower payments. Lower scores, on the other hand, means higher premiums.
Where you live
Considering that most car accidents occur close to home, the area where you live in affects your NJ car insurance rates. If you live in a densely populated neighborhood, then you’re at greater risk of collision, theft or accidents. Meaning, you’ll be paying a higher insurance premiums.