NJPAIP is Assigned or NJ High Risk Car Insurance mechanism for NJ drivers with points or accidents that make them “High Risk”.
MID TERM Non Pay Cancellations may also qualify as a “NJPAIP High Risk”. Established October 1, 1992 pursuant to N.J.S.A. 17:29D-1 and implemented by N.J.A.C. 11:3-2.1, NJ PAIP is the residual market mechanism for New Jersey personal car insurance risks not eligible for coverage in the New Jersey voluntary car Insurance marketplace.
In short, it means that for the immediate future you are not a desirable customer for preferred car insurance companies that like to write policies for those who hardly ever have a claim or a ticket for moving violations.
NJPAIP policies will not rate a person for education, credit score or being a homeowner or not.
Get a free NJPAIP rate quote which will not be cancelled unless your do not pay or do not answer any underwriting requests from your assigned companies.
What steps can I take to reduce my NJ Car Insurance rates?
NJ Insurers often discount their policy rates in order to encourage better driving practices and the use of available safety and security precautions. Depending on the NJ insurance company, you can often lower your rates from 5 to 55 percent. Sometimes the investment you make in your safe vehicle is worth the discount, and sometimes it’s simply worth peace of mind.
For example, the purchase of anti-lock brakes gives a discount from nearly every NJ insurer, but the discount probably will not pay for the brakes which cost several hundred dollars during the normal life of your car. Anti-lock brakes are touted as a valuable life saving valuable feature and deserves serious consideration when your or your families safety is a top concern.
When you buy New Jersey car insurance be careful not to violate any vehicle lease or finance agreement that may specify in writing the insurance coverage’s that you must have such as 100/300,000/50,00 and $500 Deductible for comprehensive and collision coverages.
How does adding drivers to my NJ Insurance policy affect my rates?
The more people that drive your car on a regular basis, the greater the chances of your vehicle being in an accident and being damaged. Teenagers (young drivers) are especially costly to insure because they are the least experienced drivers.
Do Drivers Education classes get a Good Student discount?
A good approved driver’s education course can help ease the burden of high NJ insurance costs since it teaches the teenager sound defensive driving techniques. If your teenagers high school does not offer drivers education, try to find one offered by another NJ school or a private firm in the area. After all, the cost could be much cheaper than the extra cost of your insurance. Many insurers offer “good student” driver discounts. Save the certificate of completion as you will want to submit it with your NJ insurance application.
An adult’s driving experience may also affect your rates significantly. Don’t assume that each and every adult you know has been driving since age 16 or 17 or is a highly competent driver with a clean NJ driving history or NJ insurance record. Again, taking a state approved defensive driving course is a good way for all adults to prove they are also responsible drivers, thus lowering their insurance risk and their New Jersey PAIP insurance premium rates.