Q. What criteria do insurance companies use to determine how much my auto insurance premium is going to be?
A. Here are a few of the main ones:
• Insurance Score - factoring of your credit history into your rate
• Territory - the town your in which vehicles are garaged
• Years Driving Experience - the number of years you have maintained a valid drivers license
   in the United States
• Driving History/Record - over the last 3 to 5 years; moving violations; accidents, claims other
   than collision; and/or suspensions
• Type of Vehicle - year, make, model
• Type and Limits of Coverage - liability is mandatory, but if you also carry comprehensive and
   collision coverage your rates are higher
• Usage - based on one way miles to work/school or annual mileage
• Prior Auto Insurance History - how long you have maintained auto coverage in general and with    the same carrier. A lapse in coverage when coverage was required by law can drastically
   increase your insurance premium.

Q. What is insurance scoring and how and why is it used to determine my rate?
A. Insurance scoring is only one of several factors used to determine your rate. It is based upon years of nationwide statistics that show there is a direct relation between how you maintain your finances and your auto insurance risk. The score is than used to help predict the potential for future losses. Over 40 states currently use this in their rating.

 To learn more go to: www.state.nj.us/dobi/acrobat/insurescore.pdf

Q. What is considered an at fault accident?
A. An at fault accident is where you as the driver of a vehicle involved in an accident is deemed 50% or more responsible for the cause of the accident AND at least $1,000 or more is paid out by your insurance carrier. Obviously, you are charged a higher rate for "at fault" accidents than "not at faulted" accidents.
"5" insurance points are applied to the driver for an "at fault accident"

Q. What is the NJ Personal Auto Insurance Program (NJ PAIP) also known as Assigned Risk Program?
A. This program is for drivers who cannot obtain personal auto insurance coverage with a standard auto carrier in the voluntary market. Some factors that would place you in this program are: accumulation of 7 or more "insurance points" in the last 3 years of driving or a non-payment of premium cancellation on a “mid term” installment that coverage lapses for over 30 days on.