Almost every country requires vehicle owners to have insurance on their automobile. This is to protect the driver, passengers, other people and their vehicles in case of traffic accident. Some countries impose standard car insurance rates. But in U.S., the New Jersey auto insurance rates vary depending on factors such as:



1. The driver’s personal profile such as:



a. Gender - not long ago, the gender of the person affects the car insurance premiums. According to their statistical data, most automobile accidents involve male drivers. But at the turn of the decade, as gender equality is instilled on the minds of young females, the statistics was reversed. The auto insurance rates may entirely depend on the accident statistics with gender as the main factor to consider.



b. Age - Younger persons may tend to have higher car insurance rates because usually they are still student drivers with no records. They tend to have more mileage and are more prone to traffic accidents. However, if they have undergone rigid driving lessons, they may have discounts on their car insurance rates.



c. Marital Status - Married drivers may tend to have lower New Jersey auto insurance rates than unmarried ones.



2. The classification of the vehicle - the more expensive it is, the higher is its premium. On the other hand, motorcycles have a lower insurance premium because the possibility of having greater damage on other vehicle is minimal.



3. The vehicle’s mileage - this factor is most commonly looked upon by all vehicle insurance companies. To measure the mileage, a certain gadget is installed on the automobile. These gadgets can be



a. Odometer-based System - this device measures the actual mileage travelled.



b. GPS System - this device not only measures the miles travelled but also records the location where the automobile is driven. However, this device is discontinued due to privacy issues.



c. On-Board Diagnostics-based System - this device is attached to the car’s Diagnostic systems to record the speed, the time and the location of the car whenever it is used.



In choosing the right insurance, be on guard on its liability coverage. If you do not exercise an intelligent evaluation, you may end up under-insured and may not give you the road protection you deserve.

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