How Much Does Car Insurance Cost for Drivers Requiring a SR22 in New Jersey?

One of the many factors used to establish the amount you pay each year for auto insurance is where your car is garaged in New Jersey. Areas with increased crime or more people like Newark, East Orange, and Union City are more likely to have higher rates, whereas less populated areas have the gratification of cheap auto insurance for drivers requiring a SR22 in New Jersey.

The illustration below rates the most costly cities in New Jersey for drivers requiring a SR22 to purchase car insurance in.

Information shown are comparative as zip code location can alter auto insurance rates greatly.

The vehicle model on the policy is one of the main factors when quoting cheap auto insurance for drivers requiring a SR22 in New Jersey. Vehicles with higher performance, poor safety ratings, or a track record of large liability claims will cost much more to insure than more modest models.

The next tables features coverage premiums for the most budget-friendly automobiles to insure in New Jersey.

Prices based on single female driver age 50, two speeding tickets, two at-fault accidents, $500 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-policy, homeowner, and multi-vehicle. Rate information does not factor in New Jersey location which can modify price quotes greatly.

Data based on single female driver age 50, two speeding tickets, two at-fault accidents, $500 deductibles, and New Jersey minimum liability limits. Discounts applied include multi-vehicle, homeowner, and multi-policy. Information does not factor in specific New Jersey garaging location which can change auto insurance rates substantially.

Cost estimates assume single female driver age 50, two speeding tickets, two at-fault accidents, $500 deductibles, and New Jersey minimum liability limits. Discounts applied include homeowner, multi-policy, and multi-vehicle. Rate quotes do not factor in specific garaging location which can impact coverage rates significantly.

Impact of citations and accidents on New Jersey insurance rates

In a perfect world, the ideal way to maintain cheap auto insurance for drivers requiring a SR22 in New Jersey is to pay attention while driving and not receive tickets or have accidents. The diagram below demonstrates how speeding tickets and at-fault fender-benders can raise annual premium costs for different age groups of insureds. The price estimates are based on a single male driver, comp and collision included, $250 deductibles, and no policy discounts are applied.

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The data in the chart shows the average cost of car insurance in New Jersey per year with no accidents and a clean driving record is $3,363. Get two speeding tickets and the average cost increases to $4,462, an increase of $1,099 each year. Now throw in one accident along with the two speeding tickets and the yearly cost of auto insurance for drivers requiring a SR22 jumps again to an average of $5,583. That’s an increase of $2,220, or $185 per month, just for not paying attention while driving!

How much more does full coverage cost in New Jersey?

Finding cheap auto insurance for drivers requiring a SR22 in New Jersey is probably important to most drivers, and an effective way to buy cheap insurance is to only buy liability coverage. The example below compares insurance costs with full phyical damage coverage and with liability coverage only. The premiums assume no claims or violations, $500 deductibles, marital status is single, and no discounts are factored in.

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If all age groups are averaged, full coverage on your policy costs $2,257 per year over liability only. That is a significant amount which raises the question if physical damage coverage is worth the money. There is no set guideline to stop paying for physical damage coverage on your policy, but there is a general guideline you can use. If the yearly cost for physical damage coverage is more than about 10% of any settlement you would receive from your insurance company, then you may need to consider dropping full coverage.

For example, let’s pretend your vehicle’s settlement value is $4,500 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, the most your company will settle for is $3,500 after paying your policy deductible. If you are currently paying more than $350 annually for comprehensive and collision coverage, then you might consider buying liability only.

There are some conditions where dropping full coverage is not a good plan. If you haven’t satisfied your loan, you have to maintain full coverage in order to satisfy the requirements of the loan. Also, if you can’t afford to buy a different vehicle if your current one is damaged, you should not consider dropping full coverage.

How to find more affordable car insurance for drivers requiring a SR22

It’s not impossible to find cheaper rates, and here are some thrifty suggestions that can help New Jersey drivers get lower-cost coverage.

• Assess whether full coverage is needed
• Avoid price increases by not filing claims
• Increase your deductibles
• Choose a safer vehicle and pay lower rates
• Drivers with good credit often pay less
• Buying home and auto together can help save money
• Shop around once a year for cheaper rates

The last item on the list is highly necessary, as was affirmed in this piece. Prices charged by companies in New Jersey adjust frequently, so don’t be unwilling to buy a different policy if a cheaper rate is available. Staying with the same car insurance company is fine, but we do not recommend it if that inflexibility results in costing you a small fortune. It only take a few minutes to compare prices to find cheaper insurance for drivers requiring a SR22.

Who has the cheapest insurance quotes for high risk drivers?

Due to technology, there are many ways to purchase auto insurance in New Jersey, but the three most common methods are using a captive (or exclusive) agency like Liberty Mutual or Allstate, an independent agent, or direct either online or via phone.

All three ways can provide auto insurance quotes, but auto insurance buyers need to understand the differences in how they provide rate quotes.

Independent insurance agents write business for many companies and can quote your policy with each one. These types of agents have the freedom to compare multiple rates, which can give you more bang for your buck. If your premiums go up, they simply move the coverage in-house and you can remain with the same agent.

An exlusive, or captive, agency is restricted to quoting rates for one insurance company, for example State Farm and Allstate agents. These agents are not able to quote prices from more than just one company, so it’s a take it or leave it situation.

Buying auto insurance direct means you skip an exlusive or independent agent and buy from a direct company like Geico or Esurance. Shopping direct is a good choice for families who do not have a complex risk profile and have a good understanding of what is covered and what is not.

So which of those three methods works best to buy cheap auto insurance for drivers requiring a SR22 in New Jersey? One answer would be buying from a direct company yields the cheapest rates since it doesn’t require paying agent commissions, but in reality, that is not the case. And we’d like to say an independent agency can save the most money since they have more companies to choose from, but that is not necessarily true either. For the right applicant, the exclusive agents may have very competitive prices that are the cheapest in New Jersey.

Since auto insurance prices are based on many different factors, really the best method to get the cheapest rates is to get quotes and compare the rates. Smart shoppers will get rate quotes from independent agents, exclusive agents, and direct companies to have the best rate selection. For a list of auto insurance companies with low rates, click here to view.