Handling Your Car Insurance Costs According to The State of New Jersey

by Staff

The state of New Jersey recognizes that there are some factors of car insurance that can’t be helped by a driver. These are such things as age and sex and other personal factors that you can’t help but just exist with. The New Jersey Department of Banking And Insurance is flooded with questions about how they can lower their car insurance costs in ways that they can personally manage. Fortunately, they have prepared a simple but detailed list that goes as follows.


Why Age And Sex Are Factors That Determine Car Insurance Cost

The age of a driver is important to car insurance providers because it is used as a reliable gauge of how experienced the driver is. Naturally, a 17-year-old driver wouldn’t have as many years of driving experience as a 25-year-old would. Being fresh out of driving school doesn’t mean a discount, but higher car insurance rates to compensate for the risk the company is taking from insuring a young driver. It’s for that reason that several young drivers start out on their parents’ policy more often than not.


While it seems strange, the listed sex on a driver’s license and birth certificate will also be looked at by the insurance provider during the underwriting process. A study has found that men tend to be more risky drivers than women do and thus are subject to higher car insurance costs. Similarly, insurance rates for married couples are lower than those of a single person.


Car Insurance Deductibles And Cost

New Jersey lists selecting higher car insurance deductibles to offset their high car insurance rates. As a refresher, a deductible is an amount the policyholder pays in the event of a claim. It’s directly inverse to the policyholder’s premiums, wherein the higher the deductible is, then the lower the insurance rates will be. The Department of Banking And Insurance recommends increasing deductibles to a higher amount than you can afford to payout when you need to file a claim for lower car insurance costs.


Health Insurers as Primary Insurance

This is a lesser-known tip for saving on car insurance when the policyholder can select their healthcare as their primary coverage in the event of a car accident and ensuing injuries. Check with your health insurer to see if they offer what is known as the healthcare primary option for car insurance –this will offset a fair amount of car insurance cost since you will not have to carry it traditionally.


Limited Right to Sue

You can carry standard car insurance and still save by selecting your limited right to sue. Also called the limitation on lawsuit option, this limits lawsuits resulting from a car accident unless it’s a case of death or permanent injury. This is a way to save on car insurance that is exclusive to New Jersey.


Your Car of Choice And Your Car Insurance

The size, value, and nearly everything else about the car you wish to insure will be taken into account by the insurance company. Several people shop with insurance rates in mind so they can pick out a car that suits their budget. Older cars are generally less to insure than new cars, and bigger cars are more to insure than smaller ones. High-performance and luxury cars naturally are more to insure due to their parts and maintenance. You should also look into your car’s safety features as insurance companies are more likely to cut a discount on account of them. This is why it’s important to at least have a basic grasp of what your car insurance will cost so you know the best vehicle for your budget.


Multiple Car And Bundled Insurance

Bundling different types of insurance with one provider as well as insuring more than one vehicle on a single insurance policy can result in some discounts going toward the premium. Insurance companies are businesses, and if there’s one thing businesses love, it’s loyal customers. Popular insurances often bundled with car insurance are homeowners’, renters’, and commercial insurance.



Always inquire about available discounts that you qualify for from the insurance provider. There are several discounts like safe driving, defensive driving class, and vehicle safety features (as previously mentioned). Discounts are widely available from both local and national insurers.

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The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.

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