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New Jersey Insurance Information

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#1 Best Value for Car Insurance in Vermont, 2016

Co-operative Insurance Companies, #1 Best Value in car insurance, Vermont, 2016

Co-operative Insurance Companies was named the Number One Best Value for car insurance in 2016 for the state of Vermont. Co-Operative Insurance Companies won with a ValChoice score of 100. The company beat out 62 other companies for this prestigious honor.

The ValChoice grading system reviews every insurance company, in every state. Each year we identify the best company, by state. Companies are chosen solely based on our independent, unbiased analytics.

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The New Jersey state flag is the image for the New Jersey insurance page on the ValChoice website

In New Jersey, both auto insurance prices and homeowners insurance prices are going up fast while incomes are going down. See the table below for details.

When insurance rates go up faster than income, it's time to shop for better insurance. Our analytics provide the most reliable information available on insurance companies. Best of all, we don't sell insurance. That means we're independent and unbiased.

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Car and Home Insurance Average Rates and Three-Year Trend

Average Price*3-Year Change
Car Insurance $1,266 3.7%
Homeowners Insurance $1,149 17.1%
Median Household Income** Not Applicable 11.6%
*Insurance Information Institute (iii.org). The most recently published data from the III is through 2015. **U.S Census Bureau (https://census.gov). Data used matches the same three-year period that is available from the III.

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ValChoice is “Carfax for...insurance”

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New Jersey Auto Insurance

The five largest auto insurance companies in New Jersey are shown in the table below. The marketshare of each company is shown in the second column. The third column shows their most recent ValChoice Score. ValChoice Scores are only presented for companies with above average performance. For the companies where the needle on the gauge is missing, you can order a free report to get the ValChoice Score. This information is presented so you can reliably compare New Jersey auto insurance companies in order to understand your options for the best car insurance.

The ValChoice scoring system takes into account how they price, their historic performance for claims handling and the level of service they provide. This scoring system uses high quality data and grades on a curve. This approach to grading yields companies that score as high as 100 and as low as 0. Only a system like this gives consumers a true picture of the performance of car insurance companies. For more details on any given company, order a ValChoice report.

Compare Auto Insurance Companies in New Jersey

Market ShareValChoice Score
NJM Insurance12.94%
gauge 100
100 out of 100
State Farm8.19%
gauge 52
52 out of 100
GEICO (Berkshire Hathaway Insurance )20.58%
gauge below average
Progressive Insurance11.15%
gauge below average
Allstate Insurance10.93%
gauge below average
ValChoice only comments publicly on companies that are above average. For any company that is below average we don't publicly display the score. For those interested, scores on all companies are available with free reports. All analysis based on quantitative, high-quality data. Data sources include: SERFF, state insurance commissioners, National Association of Insurance Commissioners and AM Best Company. Data used by permission.

New Jersey's laws require drivers to have the minimum insurance coverage shown in the table below. The important point to know about auto insurance coverage amounts is they define the maximum amount any New Jersey car insurance company is obligated to pay. If the costs are more than the amount of insurance coverage you purchased, you will be personally responsible for the costs above your coverage limits. More information on how insurance coverage protects you is included below the table.

Minimum Car Insurance Coverage Required in New Jersey

Minimum Coverage
Property Damage 5,000
Personal Injury Protection 15,000

Types of New Jersey Car Insurance

New Jersey is referred to as a "no fault" state for auto insurance. With no fault insurance, it doesn't matter who causes an accident. No matter whose fault the accident is, your insurance pays for your bodily injuries and your passengers bodily injuries. The property damage portion of the minimum insurance coverage pays for repairs to the other persons vehicle or property. If you want coverage for your own vehicle, that coverage can be purchased, but is not required. In the event that you are at fault and the other party has bodily injuries in excess of the $15,000 minimum coverage, you will be personally responsible for those medical bills. To avoid being personally responsible you can purchase additional bodily injury liability coverage. Click this link for more information on car insurance coverage requirements in New Jersey.

Bodily InjuryProperty Damage

No Fault and Bodily Injury Protection

With no-fault insurance, it doesn't matter who causes an accident. Whether the accident is caused by you or someone else, the coverage you have under your insurance pays for your bodily injuries and your passengers bodily injuries. In the case your passengers are covered by their own insurance, their insurance will be the first to pay for their injuries.

The payment amount is capped at the coverage limit of the policy. The table above shows the minimum coverage limits. Minimum coverage limits means you must buy at least this much insurance coverage. Buying more than the minimum coverage amount is also acceptable.

In the event that you are at fault and the other party (one or more people) has bodily injuries in excess of the amount of coverage you purchased, you will be responsible for the amount above the coverage you bought. This means you will be personally responsible for the medical bills, lost wages, etc, of all the people that were injured. To avoid being personally responsible, you can purchase additional bodily injury liability coverage. Click this link for more information on car insurance coverage requirements in New Jersey.

Property Damage Protection

The property damage liability portion of your insurance coverage pays for repairs to the other person's vehicle or property. This works the same way as the bodily injury coverage, with the difference being it pays for the other parties property. The maximum amount the insurance will pay on your behalf is the coverage limit that you purchased. If you want coverage above the minimum amount, that can be purchased, but is not required. Coverage for your own vehicle can also be purchased.

The severe flooding that occurred following Hurricane Irma has many people wondering what coverage they have for a vehicle that gets damaged by floodwater. Floodwater damage protection is part of your comprehensive insurance. For more details on insurance coverage for flooded vehicles, read our blog post titled "Does Your Car Float Like a Boat? What to do if it Won't!"

Getting an Auto Insurance Quote

When you get a car insurance quote, be sure to get an example of the insurance policy, or the declarations page. This will be proof of how much insurance you're actually buying. Also, be sure to keep a copy of the insurance policy so you know the full extent of your coverage.

Always ask your agent to provide you with a ValChoice report. ValChoice reports are the only reliable way to know how well insurance companies perform for providing a good value, their performance when handling claims and the level of service they provide.

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Homeowners Insurance In New Jersey

New Jersey Homeowners Insurance Rates and Trends

The five largest home insurance companies in New Jersey are shown in the table below. The market share of each company is shown in the second column. The third column shows their most recent ValChoice Score for homeowners insurance. ValChoice Scores are only presented for companies with above-average performance. For companies where there is no needle on the fuel-gauge-style image, you can order a free report to get the ValChoice Score. This information is presented so you can reliably compare New Jersey homeowners insurance companies in order to understand you are forgetting the best homeowners insurance.

The ValChoice scoring system takes into account how they price, their historic performance for claims handling and the level of service they provide. This scoring system uses high-quality data and grades on a curve. This approach to grading yields companies that score as high as 100 and as low as 0. Only a system like this gives consumers a true picture of company performance. For more details on any given company, order a ValChoice report.

Compare Homeowners Insurance Companies in New Jersey

Market ShareValChoice Score
CHUBB INA7.05%
gauge 100
100 out of 100
NJM Insurance9.51%
gauge 100
100 out of 100
State Farm10.79%
gauge 64
64 out of 100
Allstate Insurance9.27%
gauge below average
Liberty Mutual Insurance Companies8.87%
gauge below average
ValChoice only comments publicly on companies that are above average. For any company that is below average we don't publicly display the score. For those interested, scores on all companies are available with free reports. All analysis based on quantitative, high-quality data. Data sources include: SERFF, state insurance commissioners, National Association of Insurance Commissioners and AM Best Company. Data used by permission.

Renters Insurance

Many companies that offer homeowners insurance also offer renters insurance. The ValChoice grading system applies to renters insurance as well as home insurance. To get a report on renters insurance, simply select homeowners insurance and choose the type of insurance report card you would like to have.

Flood Insurance

Flood insurance is offered separately from homeowners insurance. Talk to your insurance company or insurance agent if you wish to purchase flood insurance. At this time ValChoice does not grade any flood insurance offerings. For more information on flood insurance, read our blog post titled "10 Facts About Flood Insurance, Without Drowning in Details."

Hurricane Deductibles

State law in New Jersey allows for hurricane deductibles. Under NJ law the trigger for these deductibles going into effect is when the National Weather Service designates a storm as a hurricane and sustained winds of 74 mph or greater are measured somewhere in the state. 

Hurricane deductibles mean you are likely to pay much more if a wind damages your home than if something else damages your home. For more information on hurricane and wind/hail deductibles read our blog post "How to Get Hurricane Insurance Without Getting Blown Away."

Getting an Insurance Quote

When getting a homeowners insurance quote, be sure to consider the following important items.

Amount of Coverage

The dollar amount of insurance coverage to purchase should be equal to the estimated cost of rebuilding the home. Do not include the property value when determining the amount of insurance to buy.

Extended Dwelling Endorsement

This coverage is often referred to as “extras.” This is additional coverage that addresses the problem that occurs when the actual cost to rebuild the home is more than was estimated when buying the insurance. In situations where there is a catastrophic event such as a flood, tornado or hurricane, building costs can increase significantly due to building materials increasing in price and contractors being scarce. Extended Dwelling Endorsements cover this higher than expected building cost. Extended Dwelling Endorsements are typically offered as a percentage of the coverage amount. The amount offered is commonly 10%, 25%, 50% or 100% of the coverage.

Building Code Coverage

When rebuilding a home, local laws will require that you rebuild to current building codes. If building damage is extensive, sometimes the laws even require you to upgrade the undamaged portion of the home to meet current building codes. This can be a significant additional expense. It's common that a homeowner insurance policy will exclude or limit the coverage for conforming to current building codes. Be sure to understand this important point about the insurance you buy.

Loss of Use

This specifies how much and how long the insurance company will pay for you to live somewhere else while your home is being rebuilt or repaired. One year in loss of use coverage is common. If your home requires a total rebuild, it’s wise to plan on a couple years for the project to be completed.

Covering Your Personal Items (“Contents”)

Your personal items will commonly be covered by what’s known as “replacement cost” coverage. This means you only get paid when you actually replace the item. There are two important items to understand here. 1) You must have a detailed home inventory to know what you had in order to replace these items, and 2) if you had $200,000 worth of contents and only replaced $20,000 worth of items, you would only receive the $20,000. “Replacement cost” sounds good. In reality, it may leave you far short of what you expected.

 

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New Jersey Homeowners Insurance Rate Calculator

New Jersey Home Insurance Rate CalculatorThis calculator is an average of homeowners insurance rates across the state. Individual prices will vary depending on factors such as deductibles, coverage and the risks associated with the specific area where you live.

Use this calculator to estimate home insurance prices in New Jersey. Just enter the replacement value (cost to rebuild, not including the land).

 

More Information on New Jersey Homeowners Insurance Prices

Compared to other states, New Jersey residents get value out of their home insurance at a level equal to the average of all 50 states. We measure value based on what percentage of the premiums collected by insurance companies are paid out in the form of claims. We do this over several years to account for catastrophic events.

Homeowners insurance prices have increased at a faster rate than the personal contribution to healthcare  since 2000. This means homeowners need to pay close attention to their home insurance price and shop other providers every few years in order to continue getting homeowners insurance that's a good value.

Important Insurance Laws - New Jersey

Important Laws

A summary of the driving safety laws for the state of New Jersey can be found with this link. The information includes a summary of the laws affecting people driving cars, or riding motorcycles or bicycles while using cell phones or texting. Also included are the requirements for child safety seats, wearing a helmet and being under the influence while operating a vehicle in the state of New Jersey.

The New Jersey Statute of Limitations defines the time limit following an accident when you can file a lawsuit. Once this time limit has passed, you can no longer file a lawsuit.

New Jersey is referred to as a "no fault" state for auto insurance. With no fault insurance, it doesn't matter who causes an accident. No matter whose fault the accident is, your insurance pays for your bodily injuries and your passengers bodily injuries. The property damage portion of the minimum insurance coverage pays for repairs to the other persons vehicle or property. If you want coverage for your own vehicle, that coverage can be purchased, but is not required. In the event that you are at fault and the other party has bodily injuries in excess of the $15,000 minimum coverage, you will be personally responsible for those medical bills. To avoid being personally responsible you can purchase additional bodily injury liability coverage. Click this link for more information on car insurance coverage requirements in New Jersey.

For homeowners, NJ  law allows for a different deductible when a windstorm occurs. The deductible can apply to damage caused by wind whenever the National Weather Service declares a hurricane and wind speeds of 74 mph are measured somewhere in the state. Be sure to understand how the hurricane deductible can apply to you. 

Resources Available to Consumers

Small Claims Court is available for you to resolve issues, without needing to hire an attorney. This link to the small claims court provides more information, including the dollar limit of claims that can be made in this court.

The Federal Emergency Management Agency (FEMA) is for disaster victims who are uninsured, underinsured or the victim of a flood.

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New Jersey Car and Home Insurance Rates and Trends

The New Jersey state flag is the image for the New Jersey insurance information page on the ValChoice website

The average price of car and home insurance in New Jersey is shown in the table below. This information can be used as a guide to whether you are getting a fair price.  The column titled "3-Year Change" shows the rate of change in the average prices over the most recent three-year period reported.

Car and Home Insurance Average Rates and Three-Year Trend

Average Price*3-Year Change
Car Insurance $1,266 3.7%
Homeowners Insurance $1,149 17.1%
Median Household Income** Not Applicable 11.6%
*Insurance Information Institute (iii.org). The most recently published data from the III is through 2015. **U.S Census Bureau (https://census.gov). Data used matches the same three-year period that is available from the III.

*The most recently published data by the Insurance Information Institute (iii.org).

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New Jersey Home Insurance Rates and Trends

The home insurance rate calculator is specific to the state of New Jersey so you can determine if you’re getting a fair price on your home insurance.

Use this calculator to estimate home insurance prices in New Jersey. Just enter the replacement value (cost to rebuild, not including the land).

This calculator is an average of insurance prices across the state. Individual prices will vary depending on factors such as deductibles, coverage and the risks associated with the specific area where you live.

Compared to other states, New Jersey residents get value out of their home insurance at a level slightly above the average of all 50 states. We measure value by looking at how much of the amount paid in premiums is used to pay claims. With the rapid escalation of prices in home insurance, home owners need to shop carefully in order to get a good value on their home insurance.

New Jersey Insurance Regulation

The New Jersey Department of Banking and Insurance develops and enforces insurance laws for the state. Consumers can contact the department with questions and complaints about your home and auto insurance. If you do not receive the service you expect from your insurer, you can file a complaint directly with the Department of Banking and Insurance. The state of New Jersey does not share consumer complaint information for use by consumers when making insurance purchase decisions.

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Important Laws

A summary of the driving safety laws for the state of New Jersey can be found with this link. The information includes a summary of the laws affecting people driving cars, or riding motorcycles or bicycles while using cell phones or texting. Also included are the requirements for child safety seats, wearing a helmet and being under the influence while operating a vehicle in the state of New Jersey.

The New Jersey Statute of Limitations defines the time limit following an accident when you can file a lawsuit. Once this time limit has passed, you can no longer file a lawsuit.

New Jersey is referred to as a "no fault" state for auto insurance. With no fault insurance, it doesn't matter who causes an accident. No matter whose fault the accident is, your insurance pays for your bodily injuries and your passengers bodily injuries. The property damage portion of the minimum insurance coverage pays for repairs to the other persons vehicle or property. If you want coverage for your own vehicle, that coverage can be purchased, but is not required. In the event that you are at fault and the other party has bodily injuries in excess of the $15,000 minimum coverage, you will be personally responsible for those medical bills. To avoid being personally responsible you can purchase additional bodily injury liability coverage. Click this link for more information on car insurance coverage requirements in New Jersey.

Minimum Car Insurance Coverage Required in New Jersey

Minimum Coverage
Property Damage 5,000
Personal Injury Protection 15,000

Resources Available to Consumers

Small Claims Court is available for you to resolve issues, without needing to hire an attorney. This link to the small claims court provides more information, including the dollar limit of claims that can be made in this court.

The Federal Emergency Management Agency (FEMA) is for disaster victims who are uninsured, underinsured or the victim of a flood.