Factors That Affect Car Insurance Rates In New Jersey
Reader’s Question:
I just got my driver’s license here in Jersey City, New Jersey, and I would like to know what factors can make car insurance rates high before I buy one. Thanks!
Kurt
Jersey City, NJ
Hello Kurt. Congratulations for getting your driver’s license! You must be very excited to hit the road already. Along with your new found freedom comes the responsibility of maintaining adequate car insurance coverage not only for your personal and financial well-being, but for others as well. So it would be to your advantage to know how car insurance companies determine the rates you pay.
Here’s a list of factors that affects car insurance rates and premiums:
1. Your age has a big impact on how your insurance rates are evaluated. Young, inexperienced drivers are considered more prone to be involved in car accidents to expect your premiums for the first year to be high.
2. The kind of car you drive affects your insurance rates. Sports cars costs more to insure than older vehicles.
3. Your credit history, or lack off, can also influence your insurance premiums. Insurance companies sees the lack of an established credit history in the same light as a bad credit rating, until you are able to show them otherwise.
4. Where you live also affects your insurance rates. Urban dwellers are statistically more inclined to get involved in car crashes as compared to those who live in the country.
I suggest you get at least five or six quotes online to determine the best provider there for your car in Jersey City, New Jersey. Make sure you get a good idea of what’s out there base your purchase on what you will need for insurance, not what’s cheapest.
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