New Jersey Personal Automobile Insurance Plan (PAIP) Review (2024)
PAIP insurance is a type of insurance for high-risk drivers in New Jersey. It is often more expensive than regular auto insurance. One of the most significant factors in determining your rates is where you live and store your vehicle. NJ PAIP insurance is usually a last resort insurance option.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Oct 18, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 18, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- PAIP insurance is a type of auto insurance for high-risk drivers in New Jersey.
- It will often cost more than regular auto insurance, since you are likely to be a high-risk driver.
High-risk drivers searching for auto insurance in New Jersey may have heard about PAIP insurance. But what is it, and is it right for you? Below, we’ll cover the basics, including how much PAIP insurance costs and how to get it.
PAIP may not be your only option. Enter your ZIP code above to compare auto insurance quotes from companies in your area for free today.
What is PAIP insurance?
PAIP insurance is a program set up in New Jersey that assigns high-risk drivers that wouldn’t normally qualify for auto insurance to various auto insurance companies at standard rates. It is also known as assigned risk.
High-risk drivers may be new drivers, drivers who have a history of traffic violations, elderly or young teen drivers, drivers with poor credit history, drivers who live in high-risk areas, etc.
Drivers who want to qualify for PAIP insurance have to prove that they cannot find auto insurance coverage through regular means. You must live in New Jersey, have a registered vehicle, and have a valid driver’s license. Or you can qualify by having a suspended license due to a lack of insurance.
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How much is NJ PAIP auto insurance?
Regular New Jersey auto insurance is generally more expensive than the national average, and PAIP insurance is generally even higher than that due to the high-risk nature of most drivers insured through the program.
There are two different PAIP auto insurance plans — Standard and Basic. Standard PAIP auto insurance rates will be more expensive than Basic, but it will also offer more coverage.
One of the biggest factors taken into account when determining your auto insurance rates is where in New Jersey you live. If you live in a higher risk area, your rates will be higher. For example, if you park your car on the street, your rates will be higher than someone who parks in a garage.
How can I buy PAIP auto insurance?
If you have been in touch with an auto insurance agent in New Jersey, you can ask them about insurance for high-risk drivers. You may also contact NJ PAIP through their website (njpaip.com) or call them at (800) 446-7467 to receive PAIP auto insurance quotes.
NJ PAIP will assign you to a PAIP auto insurance company, and you will have to provide your driver’s license, registration, proof of insurance points, and the names of companies who have denied you.
You can choose between two payment options. You can either pay your premiums in advance or pay 30 percent of your premium upfront and make payments for the rest of your premium over nine months.
PAIP Insurance: The Bottom Line
PAIP insurance is a type of insurance for high-risk drivers that allows them to meet the state requirements for auto insurance. However, rates will often be higher than those of regular auto insurance.
If you don’t qualify for PAIP and need help finding affordable auto insurance, enter your ZIP code into our free quote comparison tool below.
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Frequently Asked Questions
What is the New Jersey Personal Automobile Insurance Plan?
The New Jersey Personal Automobile Insurance Plan (NJ PAIP) is a program designed to provide auto insurance coverage for high-risk drivers who are unable to obtain insurance through the voluntary market. It is administered by the New Jersey Automobile Insurance Plan (NJAIP) and ensures that all drivers have access to the required minimum auto insurance coverage.
Who is eligible for the New Jersey Personal Automobile Insurance Plan?
Drivers who have been denied coverage in the voluntary market due to factors such as poor driving records, multiple accidents or violations, or other high-risk factors are eligible for the New Jersey Personal Automobile Insurance Plan. Additionally, drivers who are unable to secure coverage at affordable rates in the voluntary market may also qualify for the program.
How does the New Jersey Personal Automobile Insurance Plan work?
The New Jersey Personal Automobile Insurance Plan assigns high-risk drivers to insurance companies participating in the plan. Each participating company is required to accept a certain number of NJ PAIP applicants. The premiums for coverage under the plan may be higher than those in the voluntary market due to the higher risk associated with these drivers.
Can I choose my insurance company under the New Jersey Personal Automobile Insurance Plan?
No, the New Jersey Personal Automobile Insurance Plan assigns drivers to participating insurance companies based on a rotational system. Drivers cannot choose their insurance company under this plan.
What types of coverage are available under the New Jersey Personal Automobile Insurance Plan?
The New Jersey Personal Automobile Insurance Plan provides the same types of coverage as the voluntary market, including liability coverage, personal injury protection (PIP), uninsured/underinsured motorist coverage, and physical damage coverage (comprehensive and collision). However, the availability of additional coverage options may vary among participating companies.
How long do I need to be in the New Jersey Personal Automobile Insurance Plan?
Drivers typically remain in the New Jersey Personal Automobile Insurance Plan until they can establish a more favorable driving record or find coverage in the voluntary market at affordable rates. It is important to maintain a clean driving record and demonstrate responsible driving behavior to improve your chances of transitioning out of the NJ PAIP.
Can I get discounts on my New Jersey Personal Automobile Insurance Plan premiums?
The New Jersey Personal Automobile Insurance Plan does not offer the same discounts and rating factors as the voluntary market. Since the plan is designed to provide coverage for high-risk drivers, the premiums are generally higher and do not include common discounts such as safe driver discounts or good student discounts.
How can I apply for the New Jersey Personal Automobile Insurance Plan?
To apply for the New Jersey Personal Automobile Insurance Plan, you should contact a licensed insurance agent or broker in New Jersey. They will assist you in completing the necessary application forms and guide you through the process of obtaining coverage under the plan.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.