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NJ High Risk Auto - Non Standard
Car Insurance South Jersey Consumer Help.
NJ Health Insurance
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If you are a
claims adjuster, insurance producer, or an attorney this site will
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NJ High Risk Automobile Insurance Consumer
Resources
What is NJ PAIP?
NJ Assigned or High
Risk Car Insurance mechanism for NJ drivers with 7 or more
points.
The points may be all moving violations or a combination of NJ Insurance
Points and NJ MVC Points. They are added together
for your total points.
To find out how many points you have visit the NJ Motor
Vehicle Commission-NJMVC Web Site or phone 609- 292-7500 where
you will actually talk with a real person and review your
NJ Driver License history.
Then return back here and click on
QUOTE HELP HERE and
you will be able to accurately get a NJ PAIP Quote. If you
know how many points you have go ahead and complete the
quote request now.
WHAT YOU SHOULD KNOW ABOUT
FILING AN AUTO DAMAGE CLAIM WITH YOUR OWN INSURANCE
COMPANY
- When your vehicle is damaged
or stolen, one of the first things you should
do is file an insurance claim. If another driver
caused the damage to your vehicle, you have
the option to file the claim either with your
own insurance company, if you have the appropriate
coverages (a "first party" claim), or with the
insurer for the owner of the other car (a "third
party claim")
- In order for you to be able
to file a "first party" claim, your policy must
provide Collision or Comprehensive
coverage. These are often referred to as
"Physical Damage" coverages.
- Collision coverage protects you from damage caused to your car by a collision
with another vehicle, a fixed object, or an
object lying in the roadway. Collision coverage
also protects you from damage caused by the
upset of your vehicle.
- Comprehensive coverage protects you if your car is stolen or vandalized or
damaged by contact with an animal or falling
objects (i.e., tree limbs, rocks, stones, debris).
It also covers your vehicle for glass breakage,
fire, wind, hail, and flood damage.
- If you file a first party
claim, your insurance company will either pay
to repair the damages to your vehicle or pay
you the value of your vehicle if the damages
exceed the car's worth. First, though, the company
will subtract the deductible amount you have
chosen for that coverage.
- If you file a third party
claim against another driver, the other driver's
insurance company will only pay for damages
to your vehicle to the extent that their insured
was legally responsible. In some instances this
may not be enough to reimburse you for the full
amount of your loss.
CAN I COLLECT UNDER "NO-FAULT"
INSURANCE FOR DAMAGES TO MY VEHICLE IF I WAS AT
FAULT FOR AN ACCIDENT AND I DO NOT CARRY FIRST PARTY
COVERAGE?
- The answer is "NO". No-fault
or Personal Injury Protection (PIP) insurance
only pays for your own medical expenses if you
are injured in an automobile accident, no matter
who caused the accident. It does not pay for
damage to a vehicle.
WHAT MUST I DO AFTER A LOSS?
- Immediately report all losses
to your insurance agent or company.
- Immediately report a loss
to the police if your vehicle is stolen, vandalized,
or damaged by a hit-and-run driver. Without
a police report your company could deny your
claim. In fact, under Division of Motor Vehicle
law you are required to report any accident
involving property damage in excess of $500.00
to the appropriate authorities.
- You must make the damaged
vehicle available for inspection by the insurance
company before you have it repaired.
- Protect your vehicle from
further damage. If you don't do this, your insurer
could refuse to pay for any subsequent damage.
For example, if you don't cover a broken windshield
and rain damages the upholstery, your company
could refuse to pay for the damaged upholstery.
- Cooperate with the insurance
company's investigator. If you don't cooperate,
the company could deny your claim.
- When you file a first party
claim, you have a direct contract with your
insurer that requires the company to fulfill
all the conditions stated in your policy. However,
the contract also places duties and requirements
on you, the insured, when filing a claim. Therefore,
you need to review that section of your policy
often called "Conditions" or "Insured's
Duties After a Loss."
WHAT INFORMATION MUST I GIVE MY
INSURANCE COMPANY?
- A copy of any legal documents
you receive as a result of an accident, such
as a letter from an attorney or a summons and
complaint.
- A proof of loss, as may be
required by the insurance company, describing
the date of the loss, how it happened, who was
driving, and any other relevant information.
If a proof of loss is required, your company
could deny your claim if you fail to provide
it.
- Your company may also ask
for other documents related to the claim such
as repair bills or estimates, a copy of the
police report, or a copy of the vehicle's title
or bill of sale.
- In some cases, your company
can also require you to submit to an examination
under oath and produce requested documents.
You do have the right to have an attorney present
during the examination under oath. If you do
not submit to the examination under oath, your
company could deny your claim.
WHEN WILL MY INSURANCE COMPANY
CONTACT ME AND HOW LONG DO THEY HAVE TO LOOK AT
MY VEHICLE?
- New Jersey insurance regulations
require your insurance company to contact you
within 10 working days after they have
been notified of a loss, or if they intend to
exercise their right to inspect the damaged
vehicle, they must do so within
7 working days.
- Your insurer can only require
your vehicle to be made available for inspection
at a time and place which is reasonably convenient
for you.
HOW LONG DOES MY INSURANCE COMPANY
HAVE TO SETTLE MY CLAIM?
- Your insurance company is
allowed 30 calendar days to settle your
first party claim from the time they receive
notice of the loss. However, this time may be
extended if the company needs to conduct additional
investigation or if you fail to cooperate with
them.
- The company must provide
you with written notice explaining the reason
for the delay if the claim settlement process
takes longer than 30 days.
WILL MY INSURER PAY FOR ME TO
RENT A CAR?
- It depends. If your car is
stolen, most insurance policies will
reimburse you for a stated amount towards the
cost of a rental vehicle for a limited time
starting 48 hours after the theft, as long as
you report the theft to the police and to the
insurance company. Check your policy for the
exact wording.
- For non-theft claims,
most policies don't provide coverage for a rental
vehicle unless you buy this additional coverage.
If another party was responsible for the accident,
that party's insurer may be responsible for
rental charges.
WHAT ABOUT STORAGE FEES?
- If your vehicle is not driveable
after an accident and is towed to a storage
facility, the storage facility will charge you
a daily storage fee. Your insurance company
must give you 3 working days notice before
they stop paying for storage charges in order
to give you time to move the vehicle to someplace
where you won't incur storage charges.
WHO DECIDES WHETHER OR NOT MY
CAR CAN BE REPAIRED?
- After evaluating the damages
to your vehicle, your insurance company has
the option of repairing your vehicle, replacing
your vehicle, or reimbursing you for the vehicle's
actual cash value (ACV). Actual cash
value is the amount your vehicle would have
sold for on the date of the accident.
- Your insurance will elect
to replace your vehicle or reimburse you for
the ACV in those instances where the vehicle
is economically impractical to repair.
- A vehicle is considered economically
impractical to repair, or a total loss,
if the cost to repair the vehicle equals or
exceeds the vehicle's ACV on the date of the
loss. In many instances an insurance company
will total a vehicle if the appraised damages
equal 80% of the vehicle's ACV because often,
once repairs are begun, additional damages or
"hidden damages" are found which would render
the vehicle a total loss by definition. (This
is sometimes referred to as a "constructive
total" loss)
CAN I CHOOSE MY OWN REPAIR SHOP?
- Yes. Provided the repair
shop is licensed, your insurer has to try to
reach an agreed price with the shop of your
choice. If your company cannot reach an "agreed
price", they will provide you with the names
of licensed shops who can do the repairs for
the price the company has determined.
CAN I ASK MY INSURER TO RECOMMEND
A REPAIR SHOP?
- Yes. At your request, your
company must recommend a qualified repair facility
convenient to the vehicle's location which will
repair the vehicle at the price the company
is willing to pay and whose work is guaranteed.
Your insurance company further stands behind
the repair shop’s guarantee.
DOES MY INSURANCE COMPANY HAVE
TO USE NEW PARTS TO REPAIR MY CAR?
- No. The contract of insurance
only obligates the insurance company to restore
your vehicle to the same condition it was in
before the loss. Sometimes this requires the
use of original equipment manufacturer (OEM)
parts and sometimes after-market parts can be
used. After-market parts are parts made by a
manufacturer other than the original manufacturer.
- If your vehicle is being
repaired with newer parts, your company doesn't
have to pay for this "betterment". For example,
if your vehicle's transmission is five years
old and is damaged due to a covered loss, your
insurer would only have to replace it with a
five year old transmission. If a five year old
transmission can't be found, the repair shop
could use a new transmission but you'd have
to pay the difference between the value of a
five-year-old transmission and a new transmission.
DO I HAVE TO ACCEPT NON-OEM PARTS?
- No. While New Jersey regulations
do permit the use of after-market parts as long
as they are warranted by the manufacturer to
be of like kind and quality as OEM parts, you
don't have to accept them. The final choice
is yours but if the insurer wants to
use non-OEM parts and you decide to use more
expensive OEM parts, you may have to pay the
difference in cost.
- The regulations also require
the insurer to clearly indicate in writing on
the appraisal which parts are after-market parts
and pay for any modifications necessary.
DO I HAVE TO PAY A DEDUCTIBLE?
- When you bought your policy,
you chose a deductible for your physical damage
coverages. This is the amount you are responsible
for if a claim occurs. The higher your deductible,
the lower the cost of your physical damage coverage.
Your insurer will deduct that amount from the
settlement of your claim.
- Keep in mind that insurance
companies consider it to be fraud if
the repair shop inflates your repair estimate
to help you recover the cost of your deductible.
HOW WILL THE VALUE OF MY VEHICLE
BE CALCULATED TO DETERMINE IF IT IS A TOTAL LOSS?
- Each insurance company is
required to select one of three prescribed methods
for use in the settlement of all their total
loss claims.
- The three methods which have
been approved by the Commissioner of Banking
and Insurance are:
- Taking the average
of the retail values of substantially
similar vehicles as listed in the current
editions of the "Auto Blue Book"
(or "Older Car Blue Book") published by
National Market Reports and the
"N.A.D.A. Official Used Car Guide"
(or "N.A.D.A. Official Older Car Guide")
published by the National Automobile Dealers
Used Car Company.
- Using a quote obtained
by the insurer for a substantially similar
vehicle available for you to purchase from
a dealership within 25 miles of where your
car is normally garaged.
- Utilizing the services
of an approved source, including computerized
databases that produce fair market values
of substantially similar vehicles. At this
time ADP and CCC are approved
for use in determining fair market values.
- If your vehicle cannot be
valued using any of these three methods because
they fail to represent a true cross-section
of the market to determine the fair market value
of your car, the company is then required to
use the best available method and fully explain
to you, in writing, how they calculated the
amount they are offering you.
- In addition to telling you
which method is used to value your car, your
insurance company must also provide you with
an itemized list showing all additions, deductions,
and sales tax applicable to your vehicle.
CAN MY INSURER DEDUCT FOR ANY
DAMAGE OR RUST TO MY CAR WHICH EXISTED BEFORE THE
LOSS?
- Yes. However, deductions
for previous damage or prior condition must
be itemized with a specific dollar amount and
are limited to the amount by which the resale
value of the car is increased by the elimination
of the previous damage or correction of the
prior condition. In other words, if your car
was damaged in a previous accident and you decided
not to get it repaired, or if you neglected
the condition of your car which resulted in
the vehicle sustaining rust, your car would
not be worth as much on the open market
if you tried to sell it than it would be had
you elected to repair the previous damage
or maintain the car in good condition. The amount
by which the resale value of your car increases
by eliminating the previous damage, or correcting
the prior condition, is the amount the insurance
company can deduct from your total loss settlement.
As New Jersey does not have a
law which specifies just how insurers can take
deductions for previous damage or prior condition,
the example below is provided solely for the
purpose of giving you a better understanding
of this concept to assist in your negotiations
with the insurer.
Example:
A quarter panel damaged prior
to the covered accident which the insurer
estimates will cost $600 to replace may
result in the following deductions:
If the vehicle is 1 and 2
years old - $600 deduction for previous
damage.
If the vehicle is 3 and
4 years old - $450 deduction for previous
damage.
If the vehicle is 5 through
7 years old - $300 deduction for previous
damage.
If the vehicle is over
7 years old - $150 deduction for previous
damage.
IF I FIND A CAR JUST LIKE MINE
THAT COSTS MORE THAN WHAT I GOT FROM THE INSURANCE
COMPANY FOR MY OLD CAR. WHAT CAN I DO?
- Provided you have located
a substantially similar vehicle within 30
days from receiving the company's settlement
check, your company will have to either
- Pay you the difference
between the cost of the car that you found
and the amount of the claim settlement
- Negotiate the purchase
price of the car that you found
- Locate a substantially
similar vehicle within a 25 mile radius
of your vehicle’s principle place of garaging
which you can purchase at the market value
established by the company in their original
offer of settlement.
- Invoke the Appraisal
Clause of your policy.
DOES MY INSURER HAVE TO GIVE ME
THE OPTION TO KEEP MY CAR AFTER THEY HAVE DECLARED
IT A TOTAL LOSS?
- No. Once they settle a total
loss, your insurance company assumes the rights
to your car and can dispose of it however they
wish including selling it or its parts for
salvage. They can, at their discretion,
let you keep the car and let you try to salvage
it yourself.
- If the insurer lets you keep
your car, they will deduct its salvage value
from your total loss settlement before
applying your deductible.
IF THE INSURER SETTLES MY TOTAL
LOSS AND LETS ME KEEP THE CAR, CAN I USE THE SETTLEMENT
MONEY TO FIX IT INSTEAD OF SELLING IT FOR SALVAGE?
- Yes. However, if your vehicle
was manufactured 8 or fewer years from the current
model year, you must first obtain a salvage
certificate from the New Jersey Division
of Motor Vehicles.
- After the repairs are made,
the vehicle must then be presented to DMV for
a special inspection before it can be driven
on public roads.
- For more information on New
Jersey's salvage procedures, contact:
NEW JERSEY DIVISION
OF MOTOR VEHICLES
Salvage Unit
(609)984-9628
DOES MY INSURANCE COMPANY HAVE
TO PAY OFF MY CAR LOAN?
- No. The insurance policy
only requires the company to pay the actual
cash value of the vehicle less your deductible.
If your car's value is less than the loan, you
are still responsible for the difference.
- Keep in mind that if your
lender is listed as a loss payee on your policy
(which is normally the case) the settlement
check will be made out to them as well as to
you.
WHAT IF MY COMPANY
AND I CAN'T AGREE ON THE AMOUNT OF MY LOSS?
- If you and your insurer can't
agree on the amount of your physical damage
loss either one of you may request an appraisal
as explained in your policy. Here is how the
appraisal process usually works:
- You choose and pay for
an appraiser to represent you.
- The company will choose
and pay for an appraiser to represent them.
- The two appraisers will
select a neutral third party umpire (for
whom you and your company split the cost,
if necessary).
- Both appraisers will
give their estimates for the loss.
- If the appraisers can't
agree, they will submit their differences
to the umpire and a decision by any two
of the three is binding.
MUST I CONCLUDE MY CLAIM WITHIN
A CERTAIN TIME FRAME?
- Yes. You must either accept
a final settlement or file a lawsuit within
the time period specified by the appropriate
statute of limitations.
- If you fail to accept a final
settlement offer or to file a suit before the
statutory period runs out, you may jeopardize
your right to receive any settlement at all.
You & Your Spouse's Credit Score. It may not
seem fair, but your credit is a factor that increasingly
influences other areas of your life, including automobile,
homeowners, and life insurance. Stats show that drivers
with poor or bad credit file more auto insurance
claims, and so insurance companies use this information
to classify us. Check out your credit file with a
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