Please read this form carefully. It will answer many of the questions you may have about your NJ Car Insurance premiums and how your autos are classified.
- EXPLANATION OF THE SIX DIGIT CLASSIFICATION CODE SHOWN ON THE DECLARATIONS PAGE OF YOUR POLICY FOR EACH AUTO INSURED:
First Digit—Is always a “1”. This identifies the auto as a private passenger auto.
Second and Third Digits—Are the operator class code definitions. These identify the age, sex, marital status of the driver assigned to the auto, and indicate whether the driver is eligible for Driver Training Credit.
Fourth Digit—Is the use class code definitions. This identifies what the auto is used for, such as, farming purposes, pleasure only, to work, or in your business activities. This also identifies if the auto is on a single or multi-car policy.
Fifth and Sixth Digits—Represent the number of PENALTY POINTS applicable to the determination of premium for the auto. This code may be either a number or a letter on the Declarations Page of your policy. These PENALTY POINTS are established pursuant to New Jersey Department of Insurance Regulations.
- EXPLANATIONS OF THE CLASS CODE DIGITS AS THEY APPEAR IN POLICIES:
First Digit—The “1” represents a private passenger auto policy. The auto on the policy is not customarily used for commercial purposes.
Second and Third Digits—These two digits represent the operator (driver) class code.
Operator Class
(Identifies Age, Sex, Marital Status and Driver Training Status)
2nd and Definitions
3rd Digits |
No Youthful Operator |
13 Only operator in household is a female age 30 to 64
02 Principal operator age 65 to 74 03 Principal operator is age 75 or over 11 All Other |
Youthful Unmarried Female |
21 Age 17, or less, Without Driver Training
22 18 “ “ 23 19 “ “ 24 20 “ “ 26 Age 17, or less, With Driver Training 27 18 “ “ 28 19 “ “ 29 20 “ “ 46 Age 21, With or Without Driver Training 47 22 “ “ 48 23 “ “ 49 24 “ “ |
Youthful Married Male |
31 Age 17, or less, Without Driver Training
32 18 “ “ 33 19 “ “ 34 20 “ “ 36 Age 17, or less, With Driver Training 37 18 “ “ 38 19 “ “ 39 20 “ “ 41 Age 21, With or Without Driver Training 42 22 “ “ 43 23 “ “ 44 24 “ “ |
Youthful Unmarried Male, Not Owner or Principal Operator |
51 Age 17, or less, Without Driver Training
52 18 “ “ 53 19 “ “ 54 20 “ “ 56 Age 17, or less, With Driver Training 57 18 “ “ 58 19 “ “ 59 20 “ “ 61 Age 21, With or Without Driver Training 62 22 “ “ 63 23 “ “ 64 24 “ “ |
Youthful Unmarried Male, Owner or Principal Operator |
71 Age 17, or less, Without Driver Training
72 18 “ “ 73 19 “ “ 74 20 “ “ 76 Age 17, or less, With Driver Training 77 18 “ “ 78 19 “ “ 79 20 “ “ 81 Age 21, With or Without Driver Training 82 22 “ “ 83 23 “ “ 84 24 “ “ 91 25 “ “ 92 26 “ “ 93 27 “ “ 94 %A “ 34 20 “ “ 36 Age 17, or less, With Driver Training 37 18 “ “ 38 19 “ “ 39 20 “ “ 41 Age 21, With or Without Driver Training 42 22 “ “ 43 23 “ “ 44 24 “ “ |
Youthful Unmarried Male, Not Owner or Principal Operator |
51 Age 17, or less, Without Driver Training
52 18 “ “ 53 19 “ “ 54 20 “ “ 56 Age 17, or less, With Driver Training 57 18 “ “ 58 19 “ “ 59 20 “ “ 61 Age 21, With or Without Driver Training 62 22 “ “ 63 23 “ “ 64 24 “ “ |
Youthful Unmarried Male, Owner or Principal Operator |
71 Age 17, or less, Without Driver Training
72 18 “ “ 73 19 “ “ 74 20 “ “ 76 Age 17, or less, With Driver Training 77 18 “ “ 78 19 “ “ 79 20 “ “ 81 Age 21, With or Without Driver Training 82 22 “ “ 83 23 “ “ 84 24 “ “ 91 25 “ “ 92 26 “ “ 93 27 “ “ 94 28 “ “ 95 29 “ “ |
NOTES:
- A person in active military service with the armed forces of the United States of America is not considered a resident in the applicant’s household unless this person customarily operates the auto.
- If a youthful unmarried female operator or a youthful unmarried male operator is a student residing at an educational institution over 100 road miles from the auto’s principal place of garaging, the auto is rated with the applicable youthful married class code.
- The applicable Driver Training Classification applies to each youthful operator under 21 years of age where such operator has completed a minimum of 30 clock hours of classroom instruction plus 6 clock hours of actual driving experience.
4th Digit—This digit represents the way in which the auto is used by the operators.
Use Class
(Identifies the way in which the car is used)
4th Digit Definitions |
Single Car No Youthful Operator Multi-Car |
1 Pleasure Use 4
2 Work Less Than 10 Miles 5 3 Work 10 or More Miles 6 8 Business Use 7 9 Farm Use 0 |
Youthful Operator |
1 Pleasure Use or Farm Use 4
2 Drive to Work or Business Use 5 |
5th and 6th Digits—These digits represent the number of Penalty Points the auto has been assigned. Each Penalty Point reflects an additional premium charge. Refer to pages 5 and 6 for information regarding how penalty points are assigned.
5th and 6th Digit | ||||
Fifth And Sixth Digit |
Penalty Points |
Additional Charge | ||
Liability
Including PIP |
Compre-hensive | Colli-
sion |
||
00 | 0 | $0 | $0 | $0 |
01 | 1 | $186 | $18 | $36 |
02 | 2 | $186 | $18 | $36 |
03 | 3 | $372 | $36 | $72 |
04 | 4 | $372 | $36 | $72 |
05 | 5 | $558 | $54 | $108 |
06 | 6 | $558 | $54 | $108 |
07 | 7 | $651 | $63 | $126 |
08 | 8 | $744 | $72 | $144 |
09 | 9 | $837 | $81 | $162 |
10 | 10 | $930 | $90 | $180 |
11 | 11 | $1,023 | $99 | $198 |
12 | 12 | $1,116 | $108 | $216 |
13 | 13 | $1,209 | $117 | $234 |
14 | 14 | $1,302 | $126 | $252 |
15 | 15 | $1,395 | $135 | $270 |
16 | 16 | $1,488 | $144 | $288 |
17
. . 50 |
17
. . 50 |
$1,581 plus $93 for each point in excess of 17 | $153 plus $9 for each point in excess of 17 | $306 plus $18 for each point in excess of 17 |
81 | Licensed More than 24 but Less Than 36 Months with no other Penalty Points | $186 | $18 | $36 |
82 | Licensed More than 12 but Less Than 24 Months with no other Penalty Points | $186 | $18 | $36 |
83 | Licensed Less Than 12 Months with no other Penalty Points | $372 | $36 | $72 |
99 | 51 or More | $4,743 plus $93 for each point in excess of 51 | $459 plus $9 for each point in excess of 51 | $918 plus $18 for each point in excess of 51 |
EXCEPTION: Operators identified in the Named Excluded Driver Endorsement
If an operator is identified in the Named Excluded Driver Endorsement as a person who is excluded from Comprehensive and Collision Coverage for a specified auto(s), such operator’s rating criteria (age, sex and marital status) is not considered in determining the primary rating factor to be used in developing comprehensive and collision premiums for the specified auto(s).
III. DEFINITIONS
- Business Use means that the auto is:
- Required to be used by, or customarily involved in the duties of, the named insured or any other person customarily operating the auto in an occupation, profession or business other than just driving between one’s principal place of residence and work;
- NEITHER used as a public or livery conveyance for passengers, NOR rented to others; and
- NOT used for commercial purposes.
- Pleasure Use means:
- No Business Use.
- Personal use including driving to or from work or school LESS than 3 road miles one way.
- To Work Use means:
- No Business Use.
- Personal use including driving to or from work or school:
- 3 or more, but less than 10, road miles one way, or
- 10 or more road miles one way.
EXCEPTIONS: Autos used in Car Pools for driving to or from work on less than a daily basis shall be classified as follows:
- Autos driven to work or school 3 or more, but less than 10, road miles one way and not more than two weeks per each five week period shall be classified as Pleasure Use.
- Autos driven to work or school 10 or more road miles one way not more than two days per week or not more than two weeks per each five week period shall be classified as to Work Use 3 or more, but less than 10, road miles one way.
- Farm Use means the auto is principally garaged on a farm or ranch; and
- Is not customarily used in going to or from work other than farming or ranching, or driving to or from school; and
- Is not customarily used in any occupation other than farming or ranching.
- Youthful Operator means a named insured or any other operator residing in the same household as the named insured, who customarily operates the auto, and is one of the following:
- Youthful Unmarried Female Operator—unmarried female under 25 years of age;
- Youthful Married Male Operator—married male under 25 years of age;
- Youthful Unmarried Male Operator—unmarried male under 25 years of age who is NOT an owner or principal operator;
- Youthful Unmarried Male Owner or Principal Operator—unmarried male under 30 years of age who is an owner or principal operator.
Note: Classify an operator under age 17 who has a valid Learner’s Permit as YOUTHFUL OPERATOR, age 17.
- Penalty Points means points used to determine the dollar amount increase that will be added to the standard premium of the policy. These points shall be accumulated based on the driving experience of an operator and as a result of Violations/Convictions, License Suspensions/Revocations and At-Fault Accidents as set forth on the abstract of a driver’s license record available from the New Jersey Department of Motor Vehicles or comparable regulatory authority of another state and other sources.
- ADDITIONAL CHARGES:
- Penalty Points may increase premium based upon one or more of the following:
- Violations/Convictions
- Driving Experience
- License Suspension
- Nonpayment Cancellation
- At-Fault Accident
- Experience Period
- Charges are assessed for violations that fall within the three-year period immediately preceding the date of application or ending 90 days prior to the expiration date of the current policy for a renewal policy. Points for violations accrue when the event is recorded in the records of the New Jersey Division of Motor Vehicles or comparable agency of another state.
- Charges for Inexperienced Operators are imposed when any operator has not been licensed for the three-year period immediately preceding the date of application or renewal. For rating purposes, a valid Learner’s Permit is a license. Use the date the permit was issued as the effective date for the Inexperienced Operator charge. In no event will the experience period exceed the time frames prescribed in D.4.
- Charges are assessed for each full year of a court imposed driver’s license suspension that falls within the three-year period preceding the date of application or ending 90 days prior to the expiration date of the current policy for a renewal policy.
- Charges are assessed for cancellation for nonpayment of premium with a lapse in compulsory coverage for a period of at least 30 days if such cancellation occurred within the two-year period immediately preceding the effective date of coverage. One penalty point will apply regardless of the number of instances defined in this paragraph until no defined nonpayment coverage lapses exist in the two-year period preceding the date of coverage.
- Charges are assessed for at-fault accidents when payment by an insurer totals
- $500 or more for accidents that occurred prior to June 9, 2003;
- $1,000 or more for accidents occurring on or after June 9, 2003
provided the claim payment falls within the three-year period immediately preceding the date of application or ending 90 days prior to the expiration date of the current policy for a renewal policy. However, where the date of the claim payment is unknown, the assigned carrier may use the date of loss in lieu of the date of the claim payment for the purpose of determining the appropriate charge.
- Applicability of Charges
- Penalty Points are assigned on a per-operator basis.
- For the purpose of this provision ONLY, the term “operator” shall include
- the named insured,;
- any regular operator of the covered auto(s); and
- any household member with a suspended driver’s license who has either been convicted of a violation of the Compulsory Insurance Laws (penalty provisions, N.J.S.A. 39:6B-2) within the previous three years or other existing evidence indicates that the suspended or revoked driver has operated a motor vehicle during the period of suspension;
provided each household member is not being surcharged on another policy.
- At-fault accidents and convictions resulting from the operation of commercial autos are chargeable provided that they meet the criteria of this provision.
- Points shall not be assigned for an accident or conviction:
- involving an operator demonstrated to be a named insured on another policy; or
- where the named insured is a corporation and the principal of the corporation is a named insured on another policy;
and for which it is demonstrated that the other policy has been surcharged for the accident or conviction.
- Single Auto Policies
The penalty points applicable to each covered operator shall be totaled and the Additional Charges applicable to each operator, on an individual basis, shall be totaled and assessed on the auto.
- Multi-Auto Policies
The penalty points applicable to the principal operator of each auto shall be totaled and the corresponding Additional Charge shall be assessed on that auto.
Where a driver is the principal operator of more than one auto, the Additional Charge associated with such operators shall be assessed to the auto with the highest Total Base Premium.
Penalty points for occasional operators shall be totaled separately for each such operator and the corresponding Additional Charges shall be assessed on the auto to which the occasional operator has been assigned.
Surcharges associated with each individual with a suspended driver’s license shall be applied to the auto with the broadest coverage. Surcharges associated with each licensed operator shall continue to be applied in accordance with the provisions of this subsection (C.6.).
Surcharges associated with cancellation for nonpayment of premium with a lapse in compulsory coverage for a period of at least 30 days shall be applied to the vehicle with the broadest coverage.
- Penalty Points
Multi-Auto Policies
1. Qualified and Qualified Eligible Applicant Penalty Points
Points for convictions contained in the table below shall accrue when the event is recorded in the records of the New Jersey Division of Motor Vehicles or comparable agency of another state.
For violations occurring in New Jersey, those convictions which appear on a motor vehicle driving abstract with a “V” in the Event Code column shall be used in assessing points if they are listed in the tables below. Violations which appear with Event Code “O” shall not be used.
For violations occurring outside the state of New Jersey, refer to the table below to identify a violation of similar nature and assign the same penalty points assessed for that violation. For other out-of-state violations not listed in the table below, assign two penalty points.
Convictions resulting from the operation of commercial autos are chargeable if they match the violation descriptions in the following Table.
Violation Description | Points | |
Careless Driving | 2 | |
Destruction of Agricultural or Recreational Property | 2 | |
Driving in an Unsafe Manner
(Penalty points only assessed for the third and subsequent violations(s) within a five year period) |
4 |
|
Driving Through Safety Zone | 2 | |
Failure to Give Proper Signal | 2 | |
Failure to Keep Right | 2 | |
Failure to Keep Right at Intersection | 2 | |
Failure to Obey Direction of Officer | 2 | |
Failure to Observe Direction of Officer | 2 | |
Failure to Observe Traffic Lanes | 2 | |
Failure to Observe Traffic Signal/control Device | 2 | |
Failure to Observe “Stop” or “Yield” Signs | 2 | |
Failure to Pass to Right of Auto Proceeding in Opposite Direction | 5 | |
Failure to Stop at Flashing Red Signal | 2 | |
Failure to Stop for Police Whistle | 2 | |
Failure to Stop for Traffic Light | 2 | |
Failure to Stop Auto Before Crossing Sidewalk | 2 | |
Failure to Use Proper Entrances/exits to Limited Access Highways | 2 | |
Failure to Yield at Intersection | 2 | |
Failure to Yield to Emergency Autos | 2 | |
Failure to Yield to Overtaking Auto | 2 | |
Failure to Yield to Pedestrian in Crosswalk | 2 | |
Failure to Yield to Pedestrians or Autos While Entering or Leaving Highway | 2 | |
Following Too Closely (Tailgating) | 5 | |
Illegal Use of Median Strip | 2 | |
Improper Action or Omission on Grades or Curves | 2 | |
Improper Backing or Turning in Street | 2 | |
Improper Crossing of Bridge | 2 | |
Improper Crossing of Railroad Grade Crossing | 2 | |
Improper Crossing of Railroad Grade Crossing by Certain Autos | 2 | |
Improper Operating of Auto on Divided Highway or Divider | 2 | |
Improper Passing in No Passing Zone | 4 | |
Improper Passing of a Frozen Dessert Truck | 4 | |
Improper Passing of School Bus | 5 | |
Improper Passing | 4 | |
Improper Passing on Right or off Roadway | 4 | |
Improper Right or Left Turn | 3 | |
Improper Turn at Traffic Signal | 3 | |
Improper Turn from Approved Turning Course | 3 | |
Improper “U” Turn | 3 | |
Leaving the Scene of an Accident: | ||
a. No Personal Injury
b. Personal Injury |
2
8 |
|
More than One Person on a Motorized Bicycle | 2 | |
Moving Against Traffic | 2 | |
Moving Violation—out of State
a. Operating under Influence b. Other Out-of-state Violations not listed in this table |
9 2 |
|
Operating a Motor Vehicle on Public or Private Property to Avoid a Traffic Signal or Sign | 2 | |
Operating a Motor Vehicle on a Sidewalk | 2 | |
Operating Constructor Auto in Excess of 30 Mph | 3 | |
Operating Motorized Bicycle on a Restricted Highway | 2 | |
Passing an Auto Yielding to Pedestrian in Crosswalk | 2 | |
Racing on Highway | 5 | |
Reckless Driving | 5 | |
Slow Speed Blocking Traffic | 2 | |
Speeding/exceeding Speed Limit:
a. 1-14 Mph over Limit b. 15-29 Mph over Limit c. 30 Mph or More over Limit |
2 4 5 |
|
Wrong Way on a One-way Street | 2 | |
- Forgiveness Program For Minor Speeding Violations
No penalty points shall be assigned for a driver’s first speeding violation during the experience period of exceeding the maximum speed of 1-14 mph over limit provided:
- that the first violation occurred on or after January 10, 1996; and
- it is the first such violation within the experience period; and
- the violation did not occur in a school zone.
- Other Violations/Convictions Penalty Points
Points for these convictions shall accrue when the event is recorded in the records of the New Jersey Division of Motor Vehicles or comparable agency of another state.
For violations occurring in New Jersey, those convictions which appear on a motor vehicle driving abstract with a “V” or “O” in the Event Code column shall be used in assessing points if they are listed in the following table.
The appropriate surcharge points shall be applied as of the event date, provided an Event Code “O” appears in the event type code.
If Event Codes “V” and “O” both appear for the same violation, the posting date of the later entry shall prevail for purposes of surcharge.
For violations occurring outside the state of New Jersey, refer to the table below to identify a violation of similar nature and assign the same penalty points assessed for that violation.
Note 1: Surcharges should not be imposed when an “S” appears in the event type code.
Note 2: Convictions resulting from the operation of commercial autos are chargeable if they are in the table below.
Violation Description |
Points |
1. Operating under the influence of liquor or drugs. | 9 |
2. Refusal to submit to chemical test. | 9 |
3. Operating a motor vehicle while driving privilege is suspended. | 9 |
4. Operating a motor vehicle without liability insurance. | 9 |
5. Vehicular Homicide. | 9 |
6. Misrepresentation of insurance coverage. | 9 |
7. Make or use counterfeit plate or plates other than issued. | 5 |
8. Make, alter or counterfeit driver’s license or registration. | 5 |
9. Obtaining a driver’s license or registration through deception. | 5 |
10. Involved in fatal accident:
emergent non-emergent |
4
2 |
11. Failure to verify insurance— involved in an auto accident | 2 |
Note: If an operator is convicted of both operating under the influence of liquor or drugs and refusal to submit to a chemical test, which results from the same incident, a surcharge for operating under the influence of liquor or drugs shall be applied with respect to that incident.
- Driving Experience Penalty Points
When any operator of an auto has not been licensed in the United States, its territories or possessions, Puerto Rico or Canada for the following periods immediately preceding the date of application or renewal, point assessments shall be made as follows:
Driving Experience | Points |
Less Than 12 Months | 3 |
More Than 12 but Less Than 24 Months | 2 |
More Than 24 but Less Than 36 Months | 1 |
- License Suspension Penalty Points
Three points shall be assessed for each full year of a court imposed driver’s license suspension within the preceding three (3) years.
Notes: 1. If the applicant is applying for coverage within one year of license reinstatement following the completion of a court imposed license suspension period, or is the insured under a renewal policy, three points are assigned for any portion of a suspension year that falls within the experience period.
- Points assessed for failure to hold a driver’s license in the previous three years are not cumulative to points for driver’s license suspension.
- Nonpayment Cancellation Penalty Point
One penalty point shall be assessed for an applicant who is the named insured and qualifies for coverage because a prior policy was cancelled for nonpayment of premium or financed premium with a lapse in coverage of at least 30 days within the immediately preceding two-year period. The one penalty point shall be assessed, in addition to other applicable penalty points, if the named insured has less than seven penalty points. If the named insured qualifies for coverage with seven or more penalty points, the nonpayment penalty point must be waived.
- At-Fault Accidents Penalty Points
- Five points shall be assessed for each chargeable accident.
- Additional Charges are only assessed for accidents where a covered operator was at least proportionately responsible based upon the number of autos involved. A driver is proportionately responsible if 50% responsible for an accident involving two drivers; if 33⅓% responsible for an accident involving three drivers, etc. To be considered chargeable, the insurer must pay a claim of
(1) $500 or more for accidents that occurred prior to June 9, 2003;
(2) $1,000 or more for accidents occurring on or after June 9, 2003
(exclusive of interest costs) under one or more of the following coverages:
(1) bodily injury liability,
(2) property damage liability,
(3) personal injury protection, or
(4) collision.
EXCEPTIONS:
Any accident occurring under the following circumstances shall not be considered an at-fault occurrence:
- The named insured, or other insured driver obtained a judgment against, or a settlement from or on behalf of the person responsible for the accident and no judgment was obtained nor any amount paid in settlement by or on behalf of the named insured or other insured driver as a result of the accident; or
- The accident occurred while the auto owned or operated by the insured or any insured driver was lawfully parked.
Note: An auto rolling from a parked position shall not be considered as lawfully parked, but shall be considered as in the operation of the last operator.
- The auto was struck in the rear by another auto and the named insured or other insured driver has not been convicted of a moving violation in connection with this accident; or
- The operator of the other auto involved in the accident was convicted of a moving traffic violation and the named insured or other insured driver was not convicted of a moving traffic violation in connection with the accident; or
- The auto was struck by a hit and