New Jersey Auto Insurance FAQ

What about tier rating?

Tier rating was designed to make sure that the best drivers get the best rates. The higher the number of the tier, the higher the premium. Not all companies use the same criteria for tiers or the same number of tiers, but the basic principal is that if you are a careful driver, you will pay less money for your insurance.

Will I be surcharged for my accident?

There is a surcharge for each AT FAULT accident that results in more than $500 in property damage (yours and theirs) which occurred within the past 36 months.

Helpful hint! If you are involved in an accident that isn't your fault, hang on to a copy of the police report for 3 years in case you need to provide proof that you were not at fault.

What about my teenager who just got his license?

There is an inexperienced operator surcharge, which applies until your child has been driving for three years. There are some credits available which can offset some of this, such as the Good Student and Driver Training credits. Ask your agent for more details.

But why are Auto Insurance Rates so high?

One reason is Fraud. It has been estimated that 15 cents of every claim dollar is spent on a fraudulent claim. When Insurance Companies calculate their rates, they look towards the total amount of money paid out in claims. Most Insurance Companies have set up special fraud units to combat this problem. Fraudulent claims cost everyone money!

For additional information call or e-mail O'Neill & Associates