Factors that Effect Auto Insurance Rates in New Jersey

October 25, 2019

Auto Insurance Lawyers in Long Branch, Freehold, Wall, Red Bank and across the Monmouth County Area

Factors that Effect Auto Insurance Rates in New JerseyAuto insurance rates in New Jersey are not as cut and dry as you might imagine. Yes, there are some obvious cause-and-effect relationships between one’s actions on the road and their auto insurance rates. For example, you can bet that if you are pulled over for committing a moving violation such as passing someone in a double yellow line stretch of road, your insurance rates will moderately rise. If you are pulled over for driving while under the influence of drugs or alcohol, your rates will go way up. These direct cause-and-effect relationships between on-the-road actions and the cost of auto insurance are only some of the factors that affect your rates. Below is a breakdown of some other factors that determine your rate of insurance and may explain differing rates among drivers in New Jersey.

Age and Experience

Yes, age discrimination is legal when it comes to auto insurance companies setting the rates for their clients, because the facts show that, statistically speaking, age factors into driver accident rate and the consequent risk taken on by insuring companies. National statistics show that more accidents are caused by young drivers than more experienced ones. The Insurance Institute for Highway Safety reported that drivers between the ages of 16 and 19 are three times more likely to be in a car accident than drivers over the age of 20.

Furthermore, the Centers for Disease Control and Prevention (CDC) reports that in 2016, 292,742 teens were treated in emergency departments for injuries sustained in automobile accidents. In addition, a 2015 study by the CDC reported that auto accidents are the number one leading cause of death among teens.

As a result, auto insurance rates for young drivers are understandably higher than those of older drivers.

Insurance rates are not, however, only higher for young drivers who lack experience. Statistics show that rates for older drivers who are new to the road are also higher because lack of experience means that more errors may be made, increasing the risk for an accident.


Gender affects insurance premiums, too? Yes. Again, statistically speaking, men are culpable in causing more accidents than women – both young men, as compared to young women; and older men, as compared to older women. The British road safety charity Brake reported that men are the cause of 73 percent of traffic deaths.

Additionally, men tend to drive more than women, increasing the risk of getting in an accident or committing a moving violation. Statistics by the U.S. Federal Highway Administration show that, as of 2018, men drive on average just over 16,500 miles per year, compared to just over 10,000 driven by women.

Therefore, the rates of men are generally higher than those of women.

Marital Status

What?! How could it be? Yes – a 2004 study by the National Institutes of Health found that unmarried drivers were as much as twice as likely to be injured in a car accident than their married counterparts, as reported by the DMV.


Your credit score will affect your auto insurance rate. Those with low credit are considered to be more likely to file a claim for payment support from their insurance agency; as such, the insurance company will balance this by establishing a higher monthly premium to offset potential later payout.

Location of Residence

City dwellers are likely to pay higher auto insurance rates than rural drivers because the rates of theft and vandalism are much higher in urban areas. Some insurance companies take into account where you park your car, and a lower premium will be reflected if your car is housed in a locked and protected area such as a garage.

Car Model

As one could imagine, repairs to certain types of cars are more costly than those of others. Insurance premiums will likely reflect this. Cars whose parts are more expensive will be covered by a higher auto insurance rate.

Contact Traffic, Municipal Court, and Auto Accident Attorneys in Monmouth County NJ

At Chamlin, Uliano & Walsh, our attorneys have extensive experience helping parents across Red Bank, Freehold, Long Branch, and Monmouth County in all auto insurance claim matters, including support in filing an auto insurance claim after an accident.

Our unique approach focuses on ensuring that our clients’ safety rights on the road are protected, both as it relates to the auto insurance company and other drivers.

To speak with our firm today in a comprehensive consultation regarding your auto insurance structure or claim, please contact us online, or through our West Long Branch office at 732-440-3950. We look forward to supporting you.

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