New Jersey Question for You NJ Auto Guys.

PotentialFarmer

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So my brother lives in New Jersey and he is about to finish law school in the spring. In November his car had a huge mechanical problem with the motor and it was too costly to fix. He doesn't need a car currently so he figured he'd get rid of his Auto insurance, the guys at Allstate told him not to do that because he'd have a gap in coverage and it wouldn't be worth it to cancel his insurance for 138 a month even though he doesn't have a car and isn't going to buy one till mid September! This sounds completely assinine, also the fact that he has low limits and liability only shows me that allstate is not competitive either. In addition he was involved in an accident last year and was rated, however there was Zero Damage and Zero payout. Cops came to the scene checked everything out and he still got a bump up in his insurance rate. I know here in California unless its over 750 its not DMV reportable.

I just wanted to cover my bases here, but it seems that he'd pay 1380 over the 9 months and if he doesn't own a car to get himself rated on he wont need insurance. Is there anything in NJ that would make this worthwhile?
Thanks!
 
I don't know much about New Jersey laws, so I'm winging this a bit, but several states will move you from a preferred rating to a standard rating based on a gap. I don't know what this would do to his future rates though.

He should be able to switch to a non-owner policy for virtually nothing, keep the fact he is insured, and be happy till September. Also, given the rate and the time, I would think it would be preferable to drop coverage, which of course, the Agent wouldn't want him to. I'd make the agent show me the numbers otherwise.

Dan
 
The laws as well as insurance coverage in CA and NJ are totally different! A world apart.
I know in CA many people play a game in regards to maintaining auto insurance but NJ is very different!
He should keep his insurance!
Maybe he can find a less expensive policy. Some insurance is better than no insurance.
This is how the insurance company sees it. Regardless of wether he is driving/has a car or not in the state of New Jersey if you have a drivers license you are required to remain financially responsible. He can purchase a nonowners policy even if he does not have a car.
Some companies may not insure him (at a later date) if he has not maintained that financial responsibility.
He's even better off using a nonstandard company than no company at all!
If I am not mistaken they may suspend his drivers license if he does not maintain his insurance. A suspension can bring on a whole other set of problems!
I would not advise him to drop his insurance!
 
The laws as well as insurance coverage in CA and NJ are totally different! A world apart.
I know in CA many people play a game in regards to maintaining auto insurance but NJ is very different!
He should keep his insurance!
Maybe he can find a less expensive policy. Some insurance is better than no insurance.
This is how the insurance company sees it. Regardless of wether he is driving/has a car or not in the state of New Jersey if you have a drivers license you are required to remain financially responsible. He can purchase a nonowners policy even if he does not have a car.
Some companies may not insure him (at a later date) if he has not maintained that financial responsibility.
He's even better off using a nonstandard company than no company at all!
If I am not mistaken they may suspend his drivers license if he does not maintain his insurance. A suspension can bring on a whole other set of problems!
I would not advise him to drop his insurance!

Are you an agent in New Jersey? Are you his current agent somehow figuring this out?!? haha. I find it pretty unlikely that any state would require people with drivers licenses to carry insurance if they don't own cars. Although I do see that a nonowners policy as potentially viable, also for certain he can get himself some sort of lower end insurance company. Just seems rather retarded to me to have to handle insurance in this way. If you don't own a product why insure it. Non owners policy also seems like it should be unnecessary.
 
I am licensed in NJ and CA they are very different in regards to auto insurance.

Check out the New Jersey DOI and DMV to decide for yourself. The put out a publication What you need to know about auto insurance. Google it!

One word of caution...

When he is ready to purchase insurance again some companies may not insure him or his rates may be quite high.

I know it sounds retarded but insurance companies see him as a greater risk if he doesn't have current coverage.

Just my experience.
 
Hello all,

I am new to the forum but a 20 year New Jersey Agent.

Farmer, New Jersey is a retarded state in many ways not just insurance. And the country is heading in our same retarded ways with the ridiculous health care bill(s) pending. So be prepared it's coming in your direction.

As for the accident in NJ we use what is know as a "clue report" as part of the rating process. This is an over all view of a persons financial and other responsibilities. When your brother was in his accident the police entered the incident into their system. That in turn was picked up by the clue. The Clue report will not state who was at fault. It only states "involved" in an accident. Your brother needs to prove he was not at fault to have the charge removed. Generally providing a copy of the police report will do it but not always. A payout from the other company to him would work or a copy of a ticket or guilt verdict to the other drive. Something along those lines. He's an aspiring attorney he can figure out what is need to prove his case.

As for the gap in coverage. There is a difference between a GAP (non-pay cancellation) and cancellation. Have your brother surrender the plates and get a receipt from the DMV and take that to the agent and properly cancelling the policy.

Caution- Make copies of the receipt for the surrendered plates in case they attempt to say he didnt turn in the plates. It happens all the time.
 
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The laws as well as insurance coverage in CA and NJ are totally different! A world apart.
I know in CA many people play a game in regards to maintaining auto insurance but NJ is very different!
He should keep his insurance!
Maybe he can find a less expensive policy. Some insurance is better than no insurance.
This is how the insurance company sees it. Regardless of wether he is driving/has a car or not in the state of New Jersey if you have a drivers license you are required to remain financially responsible. He can purchase a nonowners policy even if he does not have a car.
Some companies may not insure him (at a later date) if he has not maintained that financial responsibility.
He's even better off using a nonstandard company than no company at all!
If I am not mistaken they may suspend his drivers license if he does not maintain his insurance. A suspension can bring on a whole other set of problems!
I would not advise him to drop his insurance!

example of a greedy insurance agent
 
mileena...why are you here? Just curious. To inform? To vent? To learn? To badger?

Thanks.

yes to all of those.

BTW, I almost became an agent for All State one time. They said I scored the highest on their pre-employment test that they had ever seen (perfect score?) and were impressed with my education. however, i was new to the area, and had no family, friends, connections, etc there. so they refused to hire me saying most of an agent's business is via word of mouth and through your connections, and I had none, so despite my aptitude for the numbers and ability to learn, i would struggle to get clients.
 

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