How do I reduce my Car Insurance Costs?

Are you one of those unfortunate drivers who have received a ticket for driving too fast, failing to make complete stops at the stop sign, ran the red light or was involved in a car accident and cited for careless driving? Are you concerned that the motor vehicle points are adding up and you will receive a suspension of your driver’s license or an increase in insurance points? You may ask what action can I take to help my driving record (other than performing a self check on driving habits). The State of New Jersey, Department of Motor Vehicles has announced that New Jersey drivers will be able to take on-line defense driving courses with two approved providers, The American Safety Counsel, www.safemotorist.com and I Drive Safely www. Idrivesafely.com. Successful completion of the course will enable the driver to receive a two-point reduction on his or her driving record and a mandatory, three-year automobile insurance discount. The cost for this on-line defensive driving course is between $49.00 -$50.00. (I recommend checking with your insurance company to ask for the proposed reduction should you complete the course).

The New Jersey Motor Vehicle Commission has an extremely friendly web page at www.njmvc.gov. where you can gather additional information on your driving record. Drivers are able to renew their vehicle registration, pay traffic tickets and schedule driving exams all on-line!!

The New Jersey Supreme Court also gave New Jersey drivers a break when the Justices decided Reilly v. AAA Mid-Atlantic Insurance Co.(A-122-2006). In the Reilly case, Mr. Reilly was involved in a one car accident while driving on Route 15 in north western New Jersey. Without warning, Mr. Reilly hit black ice on the road way and lost control of his car. His insurance company paid $1,000.00 in property damage to the car but charged Mr. Reilly with five points and consequently Mr. Reilly was unable to renew his car insurance due to excess points (Mr. Reilly had two other points on his driving record and the total after the one car accident reached 7). Mr. Reilly, representing himself, challenged the Department of Banking and Insurance ruling and ultimately persuaded the New Jersey Supreme Court to reverse the lower court’s ruling thus requiring automobile insurance companies to evaluate one-car accidents using negligence standards and not insurance underwriting analysis. Mr. Reilly’s five points were deducted from his record and was once again considered a “good driver.”

With the summer months upon us, take the time now to review your auto insurance policy, sign up for defensive driving courses and motor safely!!