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. . .
- Your insurance company was granted a rate increase by the NJ Department of Insurance since your last renewal
- You were at fault in an accident
- If you have a collision loss over a certain amount
- If you're over twenty five and get two or more tickets
- If you are under twenty five and get a ticket
- If your insurance company checks your driving record after you receive points
- The carrier adds a policy fee at a later date
- If you add drivers to your policy (especially youthful operators)
- If you move into a higher risk area
- A NJ car insurance surcharge as a result of violations, suspensions or accidents by another driver on your policy
- Increasing your coverage limits
- Lowering your deductibles
- Increased company losses, accident rates and/or repair costs for your defined area
- If a company finds negative information while investigating your application
- Adding another vehicle to the policy
- Replacing an older vehicle with a newer or more expensive one
- Changing the usage of the vehicle from pleasure to work or commercial
- Increasing the number of miles per year you drive