Despite the fact that the automobile insurance rates in New Jersey decreased in 2007 it is still one of the most expensive state in terms of auto insurance. To be more precise, New Jersey has the second highest premiums for drivers in the entire US.
The auto insurance rates have been gradually decreasing for the past few years. In 2004, there was a decrease of 5.6 percent in the entire nation and in New Jersey the rates fell down by 9.6 percent, though this still left it in a high bracket.
Since the new legislation in 2003 the insurance industry has been quite lenient on the residents of New Jersey. However, there are certain factors when deciding the rates which simply cannot be ignored and are few of the reasons why the insurance prices in this state is expensive. These reasons include extremely high pays of the medical providers, the high price of fixing an automobile and not to mention the population density and therefore the chances of accidents occurring in the New Jersey area. These factors have to be taken into consideration when setting the rates.
The changes in the legislation also benefited the insurance companies, as the companies had most of the control over the profits they made. Yet some of the companies simply left the state or shut down as they thought the new reforms were absurd. As there were not many options to choose from, the people in New Jersey had to succumb to the extreme rates and some do not buy the insurance because it is unaffordable.
As of now there are eight major insurance providers that manage the policies in New Jersey. However, these policies are not impartial and the same towards all people regardless of their credit report, how well educated they are, whether or not they are employed or they own home insurance or not.
This doesn’t mean you have zero options, however. You should look around for the best the best policy according to your budget and you will surely find one. The internet is a great source for this as you can easily search online for the best providers to help you find the lowest rates in your area. Also be sure to see if the insurance companies can lower your premiums if you qualify for certain discounts by having safety equipments to your car, or if you have had a driving course.
If you’re stuck and need some help finding good information online try using Ezquoteguide.com for finding the right local insurance information you need right away to help you fulfill your auto insurance needs.