Quick answer
At least 5% off the base premium for bodily injury, property damage, PIP and collision coverage, for 3 years from your next policy period, on the car the course-taker mainly drives. Comprehensive and other coverages are not on that list.
A worked example
Say the four covered parts of your premium add up to $1,200 a year. A 5% reduction is $60 a year, or about $180 over 3 years. Most online courses cost $20 to $30, so the course usually pays for itself, before counting any point benefit.
Illustration only. Your insurer calculates the actual discount on your policy.
Who qualifies
- The named insured or the principal operator of a vehicle on the policy.
- An occasional operator, if that driver's record is used to rate the policy.
- The discount applies to the vehicle the course-taker mainly drives.
How you can lose it
The discount ends if the driver gets 4 or more points or a license suspension during the 3 years.
Frequently asked questions
How much does defensive driving lower insurance in New Jersey?
Regulations require a reduction that should be at least 5% of the base premium for bodily injury, property damage, PIP and collision coverage. Some insurers may offer more.
How long does the New Jersey insurance discount last?
3 years, starting with the next policy period after you complete the course.
Do I need points to get the insurance discount?
The 2-point credit needs existing points, but the insurance regulation does not list points as a requirement for the discount. Confirm with your insurer.
Who gets the discount on a family policy?
The named insured or principal operator, or an occasional operator whose record is used to rate the policy. It applies to the car that person mainly drives.
Can I lose the discount?
Yes, if the driver gets 4 or more points or a license suspension during the 3 years.
Sources
- N.J.A.C. 11:3-24.3 (amount of the reduction)
- N.J.A.C. 11:3-24.4 (eligibility and duration)
- NJ MVC: Driver programs and approved providers
General information, not insurance advice. Ask your insurer how the discount applies to your policy.