Source: http://njcarinsurance.net/blog-new-jerseys-largest-car-insurance-network/
Timestamp: 2019-04-23 00:39:19+00:00

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If you don’t live in a swanky development or posh town in New Jersey, you may experience Redlining.
Location is one of the variables used to set rates. Insurers are also starting to use credit “scores”, occupation, marital status, and education level to set rates. Many consider these practices to be “unfair” and even racist.
An interesting refutation to this is that the job of an insurance underwriter is to properly categorize a given risk as to the likelihood that the loss will occur. Any factor that causes a greater likelihood of loss should in theory, be charged a higher rate. This is a basic principle of insurance and must be followed for insurance companies or groups to operate properly, even for non-profit groups.
Thus, discrimination of potential insureds by legitimate factors is central to insurance. Therefore the only thing that can be considered legitimately “unfair” are practices that discriminate against a given group without actual factors that show that the group is a higher risk.
If you fail to met the criteria, have some accidents or moving violations you may be forced to the NJPAIP Car Insurance Plan. It is where those considered high risk go to get insured.
NJ Driving Suspended Laws and important information.
The violation of Driving While Suspended is set forth at NJSA 39:3-40. This section states, “no person to whom a drivers license has been refused or whose driver’s license or reciprocity privilege has been suspended or revoked or who has been prohibited from obtaining a driver’s license, shall personally operate a motor vehicle during the period of refusal suspension, revocation or prohibition.” The statute also prohibits the operation of a motor vehicle whose registration has been revoked.
Conviction under this statute brings the following penalties. Upon conviction of the first offense of fine of $500.00. The defendant will also be surcharged a mandatory $250.00 per year for 3 years in every DWS by the MVC. Upon conviction for the second offense a fine of $750.00 and imprisonment in the county jail for not more than 5 days. Upon conviction for the third offense a fine of $1000.00 and imprisonment in the county jail for 10 days. Additionally, the statute states, upon the conviction the court shall impose or extend a period of suspension not to exceed 6 months. Also, upon conviction the court shall impose a period of imprisonment for not less than 45 days, if while operating a vehicle in violation of this section a person is involved in an accident resulting in personal injury to another person.
If an individual violates this section while under suspension issued pursuant to 39:4-50, driving while under the influence of liquor or drugs and is convicted, they shall be fined $500.00 extra? and have their license suspended for an additional period not less than one year nor more than two years and may be in the county jail for not more than 90 days. The defendant will also be surcharged a mandatory $250.00 per year for 3 years.
Although most municipal court matters are considered minor by many citizens it is obvious from the possible penalties involved that this is a serious offense carrying the possibility of both stiff fines and incarceration.
The most common scenario reflects where that the driver, through a motor vehicle violation, failure to pay surcharge or a accumulated points has been placed on a suspended list maintained by the New Jersey Division of Motor Vehicles (Division of Motor Vehicles), thereby making them ineligible to operate a motor vehicle for a prescribed period of time in this state.
If the driver is aware that they are on the suspended list and acknowledged they were suspended to the police officer there is little room for defense However, more often than not the driver claims that they were unaware of their placement on the suspension list.
The scenario that will often be presented by the driver is that he/she was stopped by police for an unrelated motor vehicle violation. In the process of the police encounter they were informed by the officer that their license has been suspended and they were issued an additional summons for Driving While Suspended. Over the past decade several New Jersey cases have crafted the current position on the driving while suspended issue that often confronts many municipal courts throughout the state.
The first and foremost is that of adequate notice of the suspension. In Parsekian v. Cresse, 75 NJ Super. 405 (App Div. 1962), the court ruled that it was incumbent upon the Director of the State Division of Motor Vehicles to provide fair and adequate notice to the licensed driver of the proposed suspension of their license. The court recognized that the Director could not arbitrarily suspend the license of a driver without providing both notice and enunciating specific reasons as to why the license was being suspended.
A later case, State v. Wenof, 102 NJ Super. (Law Div. 1968), both reinforced and advanced the earlier Parsekian decision. Wenof represents the substantive foundation upon which all subsequent cases involving the notice issue have been based. In Wenof, the court again recognized the importance of adequate notice of suspension. The court related, “there is always a risk that notice may not reach the intended person, but this is not the test for legal sufficiency. The test is rather, whether the notice was reasonably calculated to reach the intended parties.” Id at 375. In Wenof, the Division of Motor Vehicles sent to a written notice of proposed suspension (for failure to satisfy a summons) by regular mail. The Division of Motor Vehicles thereafter sent an order of suspension by ordinary mail. The notices were mailed to the defendant’s last address. By failing to leave a forwarding address informing the Division of Motor Vehicles where he could be reached by mail, the court stated “he should not be heard to complain of lack of due process He had it.” The court found the defendant guilty.
In State v. Hammond 116 NJ Super. 244 (Cty. Ct. 1971) a notice of scheduled suspension and order of suspension for failure to appear for motor vehicle violations was mailed to defendant, but was returned undelivered to Division of Motor Vehicles by postal authorities. The defendant was charged with misstatement of fact in an application for registration of a motor vehicle (39:3-37) and application for a registration certificate during suspension (39:3-34). The defendant thereafter applied for and obtained a New Jersey registration certificate for vehicle.
While in State v. Wenof supra the defendant was found guilty that case was distinguished in Hammond. In Hammond there was insufficient evidence of any notice to Hammond of a possible revocation of his registration certificate. Therefore, there is no adequate proof to indicate that due process was satisfied in this case. Hammond, 116 NJ Super. at 248.
If the driver is on the suspension list because he was suspended in a Courtroom for a prior violation, grounds to defend are very limited. The most common violations which carry mandatory suspensions on first offense by the Municipal Courts are for driving while intoxicated (first offense 6-12 months), driving while suspended (up to 6 months), driving without insurance (1 year), possession of Marijuana or paraphernalia (6 months-2 years). A Municipal Court also has the power to suspend a driver’s license for driving while suspended, reckless driving, excessive speeding, leaving the scene of an accident or even where the judge finds a person guilty of such a willful violation of the subtitle as shall in the court’s discretion, justify such revocation (39:5-31).
A certified abstract alone is not sufficient to convict if the defendant was suspended only by the Division of Motor Vehicles.
If the order of suspension was mailed on December 1, 1991 and the Driving While Suspended offense took place December 2, 1991, a good defense is that the Order did not reach his house until after the ticket for Driving While Suspended.
Many suspensions today are because people forgot to pay an insurance surcharge. Every insurance surcharge bill serves as a notice of suspension. Indigency is not a defense for failure to pay a surcharge.
Motorists suspended for any reason remains suspended until they pay a $50.00 Division of Motor Vehicles restoration fee. According to the harsh decision in State v. Zalta 217 NJ Super. 142 (Law Div. 1987) even if a prior court imposed suspension is over 6 months on DWI, the suspension continues until actual restoration of the license.
Plea bargaining is permitted in Driving While Suspended matters. Many court adhere to the language of State v. Somma 215 NJ Super. 142 (Law Div 1986) where the court determined that the failure to pay the $50.00 fee for restoration of the suspended driver’s license does not extend the period of suspension. Many times individuals are told by a court their license is suspended for a certain number of months, but they are usually not told they must pay a restoration fee to actually get their license back. Individuals who pay a surcharge late will have their licenses suspended initially for the failure to pay. Even after the surcharge is paid they remain suspended until the $30.00 restoration fee is paid. Often, “plea” bargaining” or ” alternative dispositions” can be worked out to avoid the harsh consequences of Driving While Suspended and the equitable rationale of State v. Somma is followed.
Few courts inform a driver charged with Driving While Suspended that the penalty is anything more than a $500.00 fine plus up to six months loss of license. Most courts do not warn a defendant if he pleads guilty he will have to pay Division of Motor Vehicles insurance surcharges or face other new penalties.
Few drivers are aware of the new provisions of NJAC 11:3-34, operative date April 1, 1991, which allows insurance companies to charge additional surcharge to drivers. These new insurance company surcharges are in a addition to Division of Motor Vehicles surcharges and fines. Several non MTF insurance companies have already received approval to charge between $37.00 and $218.00 for each point a driver accumulates. For Driving While Suspended pursuant to 2C NJR. 576 a driver is given 9 Automobile Eligibility Points.
“Scofflaws” who took their parking tickets and threw them away or forgot to pay tickets will now have these licenses eventually suspended under the Parking Offense Adjudication Act. (NJSA 39:4-139.2). If a person fails to appear or pay for a ticket, the court may give notice to the vehicle owner that the failure to appear or pay will result in suspension of driver’s license. Pursuant to NJSA 39:4-139.10(b) the judge or the Division of Motor Vehicles may now suspend the driver’s license of on owner license or operator who has not answered or appeared in response to a failure to appear notice or has not paid or otherwise satisfied outstanding parking from penalties.
The MVC, prior to suspending a license, or taking specific action against a driver must mail a notice to the driver informing them of the proposed suspension or other action. The proposed action to be taken against any licensee by the DMV becomes effective on the date set forth on the notice except when otherwise specified, unless the licenses or his/her attorney shall make a request, in writing, for a hearing within 25 days from the date of notice. New Jersey Administrative Code (NJAC)13:19-1.2.
NJAC 13:19-1.2 requires the request for a hearing to set forth all disputed facts, legal issues and arguments. Under NJAC 13:19-1.2, the DMV may either deny the request for a hearing, require a pre hearing conference with a DMV employee, or transmit of the matter to the Office of Administrative Law for a hearing pursuant to NJAC 1:1.
The DMV employee who conducts the prehearing is referred to as a driver improvement specialist. Often a resolution of the proposed administrative action is reached between the DMV and the licensee (ie- reduce suspension period -ex 180 days to 100 days).
As set forth previously, the Driving While Suspended calls for mandatory enhanced penalties on conviction second and third offense. What counts as an offense? Both the Division of Motor Vehicles and a court can suspend a driver for driving while suspended.
In State vs. Conte, 245 NJ Super. 629 (Law Div. 1990) the court examined a case where a defendant driver had two prior administrative suspensions by the DMV pursuant to NJSA 39:5-30 and NJAC 13:19-10.8. The driver had no prior court imposed convictions.
The word conviction is not defined in the statute. Black’s Law Dictionary defines conviction as “the final judgment in a verdict or finding of guilty…” Black’s Law Dictionary (6 ed. 1990) at 333. NJSA 2C:44-4(a) defines “prior conviction of an offense” as “an adjudication by a court of competent jurisdiction that the defendant committed an offense constitutes a prior conviction,” Emphasis supplied. Conviction has also been defined as ” the confession of the accused in open court or the verdict returned by the jury which ascertains and publishes the fact of guilt.” Tucker vs. Tucker, 101 NJ Eq. 72, 73, 137 A. 40 (Ch. 1927).
The motor vehicle statute, NJSA 39:3-40, is quasi-criminal and penal in nature and must be strictly construed against the State. State vs. Churchdale-Leasing Inc., 115 NJ 83, 102, 557 A. 2d 277 (1989). The word conviction, as it is used in NJSA 39:3-40, refers only to a plea or a finding of guilty in a court of competent jurisdiction and not an order of suspension entered by the DMV as the result of an administrative proceeding. The two prior suspensions are not convictions and defendant must be viewed as a first offender under the statute.
The sentence imposed was reversed and the matter remanded for sentencing as a first offender.
A person is not automatically guilty of driving while suspended simply because the Division of Motor Vehicles claims they are suspended. The defense of a person charged with driving while suspended is not impossible. There are a number of viable defense and arguments which can be pursued to achieve a successful result. Speak with an attorney experienced in Municipal Court practice.
NJSA 39:3-40 Penalties for driving while license suspended, etc.
vehicle during the period of refusal, suspension, revocation, or prohibition.
vehicle during the period of such revocation.
imprisoned in the county jail for not more than 90 days.
jail for not less than 10 days or more than 90 days.
municipality has not designated the school crossing as such by ordinance or resolution.
pursuant to section 1 of P.L.1987, c.101 (C.2C:35-7) may be used in a prosecution under subparagraph (a) of this paragraph.
satisfied the parking ticket or tickets that were the subject of the Order of Suspension.
c.90, s.1; 1986, c.38; 1992, c.203; 1994, c.64, s.2; 1995, c.286, s.1; 1999, c.185, s.3; 1999, c.423, s.3; 2001, c.213, s.1.
and the other owner of record.
vehicle, however acquired, during that period.
surrender the registration certificate and registration plates of that vehicle within 48 hours of the court’s notice of revocation.
such statute concerning the operation of a motor vehicle by an unlicensed driver.
L.1995,c.286,s.2; amended 2000, c.83, s.2.
shall be guilty of a crime of the fourth degree and the defendant’s driver’s license shall be suspended for an additional period of one year.
Note: The fines and penalties set forth in NJS.A. 39:3-40(f)(1)-(3) are imposed “notwithstanding” the general penalty provisions listed above. This chart is based on the assumption that the fines and penalties set forth in NJS.A. 39:3-40(f)(1)-(3) are in addition to those found in NJS.A. 39:3-40(a)-(e). This reading of the statute is suggested by State v. Wrotny, 221 NJ Super. 226, 228-30 (App. Div. 1987), though Wrotny does not explicitly hold as much. For a contrary reading of NJS.A. 39:3-40(f)(1)-(30), see State v. Walsh, 236 NJ Super. 151, 155 (Law Div. 1989), and State v. Rought, 221 NJ Super. 42, 47 (Law Div. 1987), which both held that the fines and penalties of NJS.A. 39:3-40(f)(1)-(3) are a substitute for those provided by NJS.A. 39:3-40(a)-(e). Before imposing sentence for a conviction under NJS.A. 39:3-40(f)(1)-(3), please consult these cases and any other relevant cases decided after the date of this chart.
Note: The fines and penalties set forth in NJS.A. 39:3-40(f)(1)-(3) are imposed “notwithstanding” the general penalty provisions listed above. This chart is based on the assumption that the fines and penalties set forth in NJS.A. 39:3-40(f)(1)-(3) are in addition to those found in NJS.A. 39:3-40(a)-(e). This reading of the statute is suggested by State v. Wrotny, 221 NJ Super. 226, 228-30 (App. Div. 1987), though Wrotny does not explicitly hold as much. For a contrary reading of NJS.A. 39:3-40(f)(1)-(3), see State v. Walsh, 236 NJ Super. 151, 155 (Law Div. 1989), and State v. Rought, 221 NJ Super. 42, 47 (Law Div. 1987), which both held that the fines and penalties of NJS.A. 39:3-40(f)(1)-(3) are a substitute for those provided by NJS.A. 39:3-40(a)-(e). Before imposing sentence for a conviction under NJS.A. 39:3-40(f)(1)-(3), please consult these cases and any other relevant cases decided after the date of this chart.
Speak with an experienced attorney to determine possible rights, defenses and mitigating factors.
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I had an automobile accident – what should I do now?
Fourth, at the first opportunity, you should contact either your insurance agent or your insurance company to notify them that you have been involved in an accident.Finally, there are a number of conditions in the insurance contract that you must satisfy in order to receive compensation from your insurer.
For example, you need to cooperate with your insurer during any investigation undertaken during the claims settlement process. Failure to complete any of these actions can, and sometimes does, result in non-payment by your insurance company for losses that otherwise would have been covered.
Why does the premium for my automobile insurance go up if I have an accident or if I get a ticket?
Actuaries and statisticians who have compared and studied the claiming behavior of people involved in accidents have long known that people who have either had an accident or received a ticket recently are more likely to have another accident in the next couple of years than people whose recent driving record has been incident free.
Author njcarinsurancenetPosted on November 10, 2017 November 10, 2017 Tags duties of insured after automobile accidentLeave a comment on I had an automobile accident – what should I do now?
Sometimes desperate times call for desperate measures. But times must be desperate indeed if you have to pay triple-digit interest rates for a small, short-term loan, particularly when it means risking the loss of your car.
Unfortunately, a growing number of New Jerseyans who find themselves in a financial bind are turning to car title loans, a source for quick money that could end up costing them their vehicle, often the most valuable thing they own.
Title loans are marketed as small emergency loans, with the customer handing over his or her car title and an extra set of keys as collateral. A typical car title loan has a triple-digit annual interest rate, requires payment within one month and is for much less than the value of the car.
“Title loans trap borrowers in perpetual debt through unaffordable balloon payments, high interest costs and the threat of repossession”.
Car title lenders generally require prospective borrowers to have free and clear title to the car before giving a loan. The lender then decides how much the consumer can borrow, based on the vehicle’s value. The loan-to-value ratio is rarely greater than 33 percent, making it a win-win situation for the lender if the borrower defaults.
Title loans usually carry an interest rate of about 25 percent for 30 days. And, if you can’t pay off the loan at the end of 30 days, it will roll over with the same interest rate. That works out to about 300 percent annually. A $500 loan on the first of the month turns into a $625 debt at the end of the month.
Car title lending was introduced in the early 1990s as an alternative to payday loans and has been growing rapidly, according to a study by the Center for Responsible Spending and the Consumer Federation of America. The recently released study indicates that, while some states have started to pass laws protecting borrowers from predatory lending practices by placing restrictions on repossessions and capping interest rates, many states have no title lending laws.
It’s estimated that there are currently more than 15,000 title loan shops in the United States.
The credit industry has a very strong lobby everywhere, and most consumer advocates say it will be tough to get something accomplished unless more politicians are involved.
With no laws in place, you will find uncapped interest rates, some as high as 1200 percent.
New Jersey Drivers at the bottom of the credit heap file 40-percent more claims than drivers at the top of the credit heap, according to a study by the Insurance Information Institute.
Consequently, having black marks on your credit report could really bump up your New Jersey car insurance rates.
“A NJ consumer with bad credit is going to pay 20- to 50-percent more in car insurance premiums than a person who has good credit.
On the flip side, if you have sparkling credit you could land lower insurance rates by shopping around.
Here’s why. Most NJ car insurance companies use credit data when underwriting new customers. Far fewer, just 14 percent of the nation’s largest insurers, use credit data on contract renewals. And some states don’t allow this practice at all.
So if you’ve been with your NJ auto insurer for a while, there’s a good chance your shiny credit record could land you a lower insurance rate at another company.
A study by the Casualty Actuarial Society shows that people with prior driving violations or accidents and good credit have much better loss ratios than people with clean driving records and a bad credit history.
New Jersey car insurance companies price policies based on a customer’s potential to file a future claim. So someone with a flawed driving record and clean credit record could actually end up paying less for auto insurance than someone with a spotless driving record and a spotty credit record.
Keep in mind, a credit record is just one of several factors that an auto insurer considers when pricing your policy. Other factors include your age, the type of car you drive, how many miles you drive and whether you live in an urban or rural area.
Just how big an impact your credit record has on your auto insurance bill varies based on the state you live in and the insurance company you choose.
Insurance is regulated at the state level. Some states allow auto insurers to use credit data in the approval process. Others allow insurers to use credit data when determining what rate class a driver falls into. Some use it for both.
For more information, contact the insurance department in your state. This map from the National Association of Insurance Commissioners links to each state’s insurance department.
Your New Jersey auto insurance company doesn’t actually peek at your credit report. Instead, it receives an insurance score from a credit bureau based on the information in your credit record.
Fair, Isaac and Co. How to get the credit bureaus with the formulas to crunch insurance scores. Some insurance companies have their own scoring models.
Like a credit score, an insurance score is based on information found in a consumer’s credit file. But the formulas used to arrive at the two types of scores are quite different.
“An insurance score is going to be less concerned with your propensity to take on new credit and more interested in how long you’ve been managing credit”.
Curious about your insurance score? Good luck finding out. Insurance companies aren’t required to tell, and few do.
Even if you could find out your insurance score, it might not be all that helpful. Yes, it could give you a sense of how a single auto insurer rates your credit record, but that’s it.
When it comes to insurance scores, there’s no uniform standard. So another insurance company, using another scoring model, could assign you a different insurance score and offer you vastly different rates.
The key thing to realize is your credit record does affect the cost of your auto insurance.
If you’re having credit problems, it’s best to stick with your current auto insurer until your credit record improves. If you must shop for a new auto policy, ask the insurer if they use credit data in their decision-making process. Not all insurance companies do.
You may be better off doing business with a company that doesn’t use credit data when underwriting new customers.
It’s also a good idea to check your credit report before shopping for auto insurance.

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