18 Reasons Why NJ Car Insurance Premiums Increase

18 Reasons Why NJ Car Insurance Premiums Increase

November 2011

No one likes to see price increases of any kind. And since the NJ Car Insurance marketplace is very competitive, auto insurance companies like keep your business!! However, it's a tricky balance for the insurance companies to stay healthy and still be there to pay your claims and provide a return for their investors. So, when your rates, or premiums,  go up, for no apparent reason, you'll no doubt get upset and want to leave them. BUT, before you do --- talk to us. We take our responsibility to help you keep your costs down very seriously. We've earned our reputation of going above and beyond to help you get the best insurance value for your insurance dollars!

So, if you do experience a rate increase, there are many reasons behind it. As your independent insurance agency, your account manager at Connelly-Campion-Wright keeps a very close eye on the changes in the marketplace months before your policy renews. We have a process in place to then "shop" your coverage for you -- so you don't have to! Our goal is to take the worry out of your hands!

However, NJ car insurance pricing calculations are very complicated and  frankly, are handled by computers these days --- so, each policy is rated individually and can vary greatly from insurance carrier to insurance carrier. There are hundreds of algorithms behind pricing calculations which are based on many different factors.

So, when you do experience a rate change, it's usually for one of the following reasons. . .

  1. Your insurance company was granted a rate increase by the NJ Department of Insurance since your last renewal
  2. You were at fault in an accident
  3. If you have a collision loss over a certain amount
  4. If you're over twenty five and get two or more tickets
  5. If you are under twenty five and get a ticket
  6. If your insurance company checks your driving record after you receive points
  7. The carrier adds a policy fee at a later date
  8. If you add drivers to your policy (especially youthful operators)
  9. If you move into a higher risk area
  10. A NJ car insurance surcharge as a result of violations, suspensions or accidents by another driver on your policy
  11. Increasing your coverage limits
  12. Lowering your deductibles
  13. Increased company losses, accident rates and/or repair costs for your defined area
  14. If a company finds negative information while investigating your application
  15. Adding another vehicle to the policy
  16. Replacing an older vehicle with a newer or more expensive one
  17. Changing the usage of the vehicle from pleasure to work or commercial
  18. Increasing the number of miles per year you drive
Are you concerned that you're not properly covered or that you are not getting the right discounts you should be getting? Get in touch with us today for a detailed review of your situation. We'll help you determine what's right for you! Call CCW Insurance at 732-280-2800 or email us at ccw@ccwinsurance.com.  We also invite you to follow us on twitter at twitter.com/ccwinsurance and find us on facebook at facebook.com.ccwinsurance to learn up to date information that could save you time and money.

 

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