[...]... with less favorable risk characteristics may be placed in higher-rated tiers 11 What Affects the Cost of Auto Insurance? Auto insurance rates vary from company to company, driver to driver, car to car, and coverage to coverage When you apply for auto insurance, companies consider a variety of factors to determine the risk you represent and the likelihood that you will experience an accident or loss The... and you let your insurance lapse, it is important to surrender your license plates to the New Jersey Motor Vehicle Commission to be sure you do not have an uninsured registered vehicle Insurance Score Some, but not all, insurers in New Jersey will use an insurance score based on your credit history as one of the factors in determining risk (See page 17.) 13 What Affects the Cost of Auto Insurance? How... certain rights and responsibilities regarding the purchase of auto insurance Knowing these rights will allow you to get the most from your insurance coverage You Have the Right to Purchase Insurance You can never be denied auto insurance based on your gender , race or ethnicity In most circumstances, a company cannot refuse to sell you insurance based on where you live as long as you are an eligible... limits desired 15 What Affects the Cost of Auto Insurance? How to Shop for Auto Insurance The key to getting the most out of your premium dollars is to comparison shop among insurers Before you start shopping, consider what insurance coverage you need, then compare how much the same coverage would cost from several insurers Comparison shopping takes time, but the effort may result in a lower premium... will protect consumers and encourage competition Consumer safeguards include: CANNOT: Auto insurance companies that use insurance scoring Use an insurance score to deny, cancel or non-renew coverage Use an insurance score for consumers covered by theSpecial Automobile Insurance Policy or Basic Policy programs Use an insurance scoring model that considers race, ethnicity , sex, age, religion, income,... prior to renewal of a policymay not be considered eligible to purchase coverage in the voluntary market As a result, some insurers will direct them to purchase insurance through the Personal Automobile Insurance Plan (PAIP) It is important to note, however , that not all insurers in the voluntary market refuse to cover drivers with seven or more insurance eligibility points If you have seven or more insurance. .. another step in providing auto insurance consumers with more choices in companies, products and price Some auto insurance companies in New Jersey are now using your insurance score as one of the various factors to evaluate risks and assign rates An insurer may use your insurance score, based on information contained in your consumer credit reports, in conjunction with your motor vehicle records, loss... mortgage lenders to predict the likelihood that a person will repay a loan or some form of credit debt An insurance score is used by insurance companies to predict a consumer’s likelihood to file claims 17 What is Insurance Scoring? How is insurance scoring different in New Jersey? The New Jersey Department of Banking and Insurance examined the practice of insurance scoring in more than 40 states to help craft... right to sue another driver applies to you, your spouse, children and other relatives living with you who are not covered under another automobile insurance policy The Unlimited Right to Sue and Limited Right to Sue options (see page 9) only cover lawsuits for “pain and suffering” or noneconomic losses Your medical expenses and some economic losses for injuries in auto accidents will be paid up to the... a consumer’s insurance score Insurers generally hire a vendor to look at the information provided by major credit bureaus, and use it to develop an insurance score for you The vendor then gives your score, not your credit report, to the insurer Insurance scores vary by company due to the information provided andthe vendor formula used to calculate the score What factors can affect your insurance score? . your territory will affect the rates charged by insurance companies. What Affects the Cost of Auto Insurance? Auto insurance rates vary from company to company,. Recipients Only The Special Automobile Insurance Policy (SAIP) is a new initiative to help make limited auto insurance coverage available to drivers who are eligible