Auto Insurance Quotes in New Jersey – High Rates Explained

The state of New Jersey suffers from some of the highest auto insurance quotes in the entire United States and even motorists with excellent driving records are rarely exempt from the extortionate rates that are applied to their policies. Unfortunately, large parts of New Jersey are in built-up areas with compact population densities, large numbers of vehicles on the road and high rates of crime. This inevitably leads to an increased number of accidents and a greater chance of suffering from car theft or vandalism.

Take a look at any car insurance quotes offered in the Garden State and it will immediately become apparent that inhabitants of New Jersey are being made to purchase some of the most detailed policy coverage in the country. The minimum legal requirement of auto insurance coverage is laid out to include the following:

  • $15,000 worth of bodily injury liability per person
  • $30,000 worth of bodily injury liability per accident
  • $5,000 of property damage liability
  • Personal injury protection to a minimum value of $15,000
  • $15,000 of uninsured or underinsured motorist protection per person
  • $30,000 of uninsured or underinsured motorist protection per accident
  • $5,000 of uninsured or underinsured motorist property damage coverage

One of the most significant factors of high-cost auto insurance quotes in New Jersey is the number of uninsured or underinsured motorists using vehicles on state highways, particularly in urban areas where traffic is more dense. In fairness, the state of New Jersey has previously tried to contain car insurance costs by capping urban rates at no more than 35% higher than the average rates across the state; these measures were originally implemented in 1983. Sadly, increased motoring expenses eventually led to further numbers of uninsured drivers on the road because policies and operating cost for automobiles became more unaffordable. It was also suggested that the 1983 measures led to market inefficiency.

The current auto insurance market is certainly more efficient but in turn, car insurance quotes have inevitably soared. A middle-aged male driver in New Jersey is likely to pay up to 75% more for an auto insurance policy than an equivalent driver in rural areas of the same age. Again, this has led to an increase in the number of uninsured drivers using the roads of New Jersey. The current Governor for New Jersey, John Corzine, has proposed a fresh urban cap on auto insurance quotes until such a time as the state can offer a more competitive marketplace and friendlier relaxations in terms of current coverage demands.

Opponents of these proposals argue that financial instability will result and low-risk drivers will inevitably end up subsidizing those with a less-than-perfect driving history. Thankfully, the growth of price comparison websites and the online presences of major carriers have led to a more competitively-priced arena where motorists can find genuine value-for-money car insurance quotes. Although premiums will still be significantly higher than those applied throughout the rest of the country, motorists in New Jersey should still be able to find affordable deals that fall within most household budgets.

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