NJ Auto Insurance Rates Up in 2023? | Find Out

Here at Nutley Kia, we are always looking to provide our drivers with the most up-to-date information on auto news. So, today, we will dive into New Jersey Auto Insurance rates in 2023. Here is what this fiscal year will look like, keep reading to find out. 

 

What Determines Auto Insurance Rates?

Auto insurance rates are determined by a variety of factors, including:

1. A Driver’s History: Insurance companies will look at a driver’s past driving record, including any accidents or violations, to assess the level of risk.
2. Identifying Factors: Age, gender, and marital status can determine auto insurance rates.
3. Model and Make of Vehicle: The type of car you drive can affect your insurance rate, as some vehicles are more expensive to repair or replace than others.
4. Level of Coverage: The amount of coverage you choose will affect your insurance rate.
5. Where You Live: Insurance rates can vary depending on where you live, as some areas are at a higher risk of accidents or thefts.
6. Your Credit Score and History: Some insurance companies use credit score as one of the factors to determine the rate as they believe that credit score is a good indicator of how likely someone is to file a claim.
7. Student Status and/or Occupation: some insurance companies also use occupation and education level as one of the factors to determine the rate as they believe that it is also a good indicator of how likely someone is to file a claim.

 

Why Will Auto Insurance Rates Rise in 2023? 

Given the factors that insurance companies consider when determining insurance rates, there are other determinants as well. And unfortunately, in 2023, the forecasts seem to point toward higher rates. Here is why:

According to State Representatives in New Jersey, approximately 1.2 million New Jersey drivers will pay more than last year’s auto insurance rates. Why? Most likely because of a bill recently signed under Governor Phil Murphy that minimizes the liability insurance necessary for drivers throughout the state. With that in mind, drivers affected by the change in regulation may warrant yearly payment increases that round up to about $125. New legal infrastructure lowered liability coverage rates have increased to about $25,000 in 2023 and are expected to rise to $36,000 in 2026 – hence New Jersey drivers should expect to pay even more over the next three years. 

Despite the law’s implementation, many legal representatives found the bill incredibly controversial. Meanwhile, some even argued that this new law prevents crash victims from being able to afford their medical bills, nor have they been able to place payments on time due to the low liability insurance coverage. 

However, in the face of the negative claims made regarding the new law – many people will benefit. See if you qualify. 

 

Who Will Benefit | NJ Auto Insurance Law

As of 2023, the most recent law passed in New Jersey is raising auto insurance rates. 

To provide further context, the state of New Jersey resets these rates annually based on the statewide average of residents’ weekly wages. And in comparison to years prior, for those who qualify, the benefits are more extensive than years past. If you do not qualify for benefits, keep reading and learn how you can still save money with rising auto insurance rates in New Jersey. 

 

How to Save Money when Auto Insurance Rates are Increasing

Auto insurance rates fluctuate for many reasons. Some reasons include state regulation changes, accident claims increase, and natural disasters. If you find that your auto insurance rates have gone up, there are a few steps you can take to save money on your premium.

1. Consider A New Policy: With so many insurance companies offering auto insurance, comparing rates, and coverage options are essential. You can use online comparison tools or consult an insurance agent to find the best deal.
2. Try Increasing Your Deductible: One way to lower your premium is to increase your deductible, which you pay out of pocket before your insurance kicks in. Remember that a higher deductible means more risk for you, so make sure you can afford to pay it in the event of an accident.
3. Think About Bundling Insurance Policies: Some insurance companies offer discounts for customers who bundle their policies. For example, insurers will offer discounts for auto and home insurance. Bundling can help you save on your premium while providing comprehensive coverage.
4. Utilize Discounted Rates: Insurance companies will offer discounts for various reasons. You can find discounted rates if you have a good driving record, take a driver safety course, or insure multiple vehicles. Ask your insurance agent about any discounts you may qualify for.
5. Review Your Coverage Plan: It’s essential to regularly review your coverage to make sure it’s meeting your needs. One example of this is if you’ve recently paid off your car, double-check if you can reduce your coverage. Doing so will save money on your premium.

 

Follow these steps and save money on your auto insurance premium, even if rates increase. Remember to review your coverage, consider raising your deductible, bundling your policies, taking advantage of discounts, and reviewing your coverage regularly.

And for more updates on New Jersey Auto and what’s to come in 2023, be sure to check out our blog. Here at Nutley Kia, we always look to keep our customers updated. 

Works Cited: 

https://www.njspotlightnews.org/video/business-report-auto-insurance-rates-rise-unemployment-benefits-increase-nj-economy/

https://www.nj.com/politics/2022/08/murphy-signs-costly-auto-insurance-bill-that-will-affect-11m-nj-drivers-into-law.html

https://www.nj.com/politics/2022/12/auto-insurance-getting-even-more-expensive-for-12-million-nj-drivers-in-the-new-year.html

https://www.investopedia.com/articles/pf/08/car-insurance-costs.asp

Tags: 2023 Auto Insurance Rates, New Jersey Auto Insurance
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