Your Premium

What Makes Up A Rate?

New Jersey is the most densely populated state in the country. Consequently, because we have more cars grouped closer together, we get in more accidents. Other things that also affect your insurance rate include the type of car you drive, your attitude toward driving, how safe you are on the road, the number of accidents you're involved in, whether you get tickets and violations, all play a factor in your auto insurance premium. See tier rating.

Other Factors that Affect Your Rates

The cost of coverage is determined by the cost of paying claims. What follows are factors that drive up the cost of claims, and therefore, raise auto insurance premiums for everyone.

Lawsuits

One of the most significant factors affecting claims costs is the tort system. The number of auto related lawsuits being filed has steadily increased since the early 80's. Because insurers are obligated to pay defense costs in all lawsuits, regardless of the severity or possible frivolous nature, that increase results in a higher cost of doing business. The amount of judgments awarded continues to mount. These awards have grown more rapidly in non-economic areas like pain and suffering.

Medical Costs

Rising medical costs contribute to increases in bodily injury liability claim costs. In general, medical costs have been rising at a rate more than twice the general inflation rate. A large percentage of these medical claims go towards "soft tissue" injuries. These types of injuries are often controversial and hard to establish.

Car Repair Costs

Cars today are more expensive than they have ever been. They have also grown more sophisticated mechanically and technologically. These advancements include such things as air bags, fuel injection and onboard computer systems. While these are all excellent advancements, they add to the cost of repair when an accident occurs.

Theft & Fraud

According to the National Insurance Crime Bureau, fraud costs property and casualty insurance companies more than $20 billion a year, that's equal to10 percent of all property and casualty claims paid industry wide. All auto insurers in New Jersey have entire staffs dedicated with the prevention and detection of auto insurance fraud.

Discounts Offered by IFA

Cancellation and Return Policy