You have the right to purchase insurance:
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You can never be
denied auto insurance
based on your gender,
race, or ethnicity. In
most circumstances, a
company cannot refuse to
sell you insurance based
on where you live as
long as you meet the
company’s
acceptance criteria*.
If you are denied auto
insurance coverage, the
agent or company must
state a reason. Common
reasons include:
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You do not meet any
of the company’s
acceptance criteria*.
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The insurer is a
“membership company”
that only covers
certain categories
of drivers.
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The Department of
Banking and
Insurance has
permitted the
insurer to stop
writing new
policies.
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You have the right to cancel or change insurance:
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You can shop for
cheaper auto insurance
at any time – not just
when your policy is up
for renewal. If you find
a better price, you can
cancel your old policy
and seek a refund of
your unused premium.
However, never cancel
your old policy until
a new one is in effect.
A lapse in coverage will
result in higher rates
in the future.
You have the right to
change your coverage and
policy limits at any
time, even if you are
not near your renewal
date. If you select
lower policy limits or
cancel no mandatory
coverage to save money,
you have a right to a
refund of your unused
premium within 60 days.
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You have the right to choices:
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Agents, brokers and companies must
inform you of your
coverage options when
applying for a new
policy, or at any time
upon your request if you
are already insured. You
have the right to know
how each choice may
affect what you pay and
what your benefits would
be in the event of an
accident. You always
have the right to ask
about additional
options.
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You have the right to a timely response:
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You have the right to a timely response
when seeking an
appointment or
application from an
agent, broker or
company. Appointments
should be scheduled so
that you can obtain
coverage before your
current policy expires.
However, an application
is usually not
considered complete
until the company has
obtained all pertinent
information, including a
copy of the applicant’s
driving record from the
Motor Vehicle Commission
and verification of any
previous coverage.
Therefore, the overall
application process can
take up to two weeks.
Make sure you give
yourself enough time to
shop for coverage.
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You have the right to the prompt and fair handling of claims:
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You have the right to ask about any
payments made to others
by your company and
charged to your policy.
If you file a claim, it
should be handled
promptly and fairly. If
a claim is denied, you
must receive a written
explanation for the
denial.
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You have the right to a notice of cancellation:
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There are specific circumstances that
allow an insurance
company to cancel your
policy during the policy
period. This is referred
to as a “mid-term
cancellation.” This may
only occur when fraud is
discovered, when your
driver’s license is
suspended or when the
policyholder fails to
make premium payments. A
15-day warning notice
must be sent before the
policy is canceled.
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You have the right to appeal:
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If your coverage is
canceled, you can file
an appeal with the New
Jersey Department of
Banking and Insurance.
Contact the Consumer
Inquiry and Case
Preparation Unit,
P.O. Box 471,
Trenton, NJ 08625-0471, call (609) 292-7272 or
1-800-446-7467, or visit
online at
www.state.nj.us/dobi/consumer.htm.
The Department cannot
guarantee that your
policy will be
reinstated, so you
should not delay
shopping for alternate
coverage.
If a carrier denies you
coverage and does not
state a reason, or if
you believe you have
been treated unfairly,
you can contact Consumer
Protection Services.
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You have the right to a notice of non-renewal:
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Insurers can decline to
renew coverage if you no
longer meet any of the
company’s acceptance
criteria*. This can
occur when a driver’s
record includes“at-fault
accident” or motor
vehicle violations.
Other reasons for
nonrenewal of a policy
include:
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The Department has,
for regulatory
reasons, permitted
the company to
non-renew policies.
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The insurer is using
the 2-for-1 or the 2
percent rule. The
2-for-1 rule allows
the insurer to
non-renew one
vehicle for every
two new ones it
writes in each
territory. The 2
percent rule allows
the insurer to
non-renew up to 2
percent of policies
in a territory
experiencing heavy
growth. Drivers
subject to
non-renewal do not
have clean driving
records or have a
poor payment
history. Insurers
must state that they
have invoked these
rules on
the
non-renewal notice.
A written non-renewal
notice must be sent at
least 60 calendar days
prior to the expiration
date of the existing
policy.
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Your obligations as a
New Jersey
driver:
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New Jersey
state law requires that
any registered vehicle
be covered by an
insurance policy.
Failure to maintain
coverage can lead to
higher prices for new
policies, placement in
the “assigned risk”
pool, suspension or
revocation of your
driver’s license or
registration and
additional fines and
penalties.
Maintaining your auto
insurance coverage
requires that you:
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Always make payments
for your policy on
time or a lapse in
coverage may result.
A driver who incurs
a lapse will end up
paying far more for
coverage.
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Always provide any
information your
company seeks.
Insurance companies
have the right to
seek information
about all licensed
drivers in the
household.
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If you receive a
nonrenewal notice,
do not wait to shop
for alternate
coverage. Policies
can be prepared in
advance to become
effective on a date
several days or
weeks after the
application.
A driver who mails a
renewal payment before
the due date cannot lose
coverage. However,
insurers can charge the
driver a late fee if the
payment is postmarked on
time, but arrives after
the payment due date.
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