High Risk Insurance Paterson New Jersey NJ
Reader’s Question:
How long does a typical insurance company in Paterson, New Jersey charge for an accident? Someone told me that typically it will make your insurance rates go up for about three years from the date the insurance policy went up. Is this true?
Henry
Paterson, NJ
The NJ Department of Banking and Insurance (NJDOBI) states that the state permits each car insurance providers to set up underwriting guidelines to determine what type and how many violations and accidents during a specific period constitute a high-risk driver. So it will generally depend upon the auto insurance provider’s guidelines to determine what violations, accidents, etc they determine will cause a person’s insurance rates to rise and how long.
Auto Insurance company can consider a number of risk characteristics, including driving record, vehicle type, years of driving experience, coverage limits, credit history and claims when determining a driver’s tier placement. Other factors, include like age, marital status, and gender may also impact a person’s rate within a specific tier.
Generally most insurance providers in Paterson, New Jersey will typically raise your insurance rates for a certain period after an conviction or accident of a traffic violation, the average time being three years. Since the state of NJ does not set the time period through insurance providers may charge for a longer or shorter period of time. Some insurance providers may rate based on your driving record for the last five or seven years instead of just three years.