Elizabeth, NJ Car Insurance For Less Than You’re Paying Now

Are you confused by the sheer number of car insurance companies in Elizabeth? You have a lot of company. You have so many companies to choose from that it can easily become a big hassle to find better rates.

It is always a good idea to price shop coverage every six months since rates fluctuate regularly. Just because you found the best rates on your last policy the chances are good that you can find a lower rate today. Don’t believe everything you read about car insurance on the internet, so with this article, you’re going to get some guaranteed methods to stop overpaying for insurance.

Finding affordable coverage in Elizabeth is quite easy. In a nutshell, every vehicle owner who is required by state law to have car insurance will be able to cut their insurance bill. Nevertheless, New Jersey consumers need to learn the methods companies use to price insurance differently and apply this information to your search.

Get Cheaper Rates by Understanding Pricing

It’s important that you understand some of the elements that come into play when calculating car insurance rates. When you know what positively or negatively controls the rates you pay empowers consumers to make smart changes that can help you get better car insurance rates.

  • More than one policy can earn a discount – The majority of insurance companies provide better rates to policyholders who consolidate policies with them in the form of a multi-policy discount. Even though this discount sounds good, it’s still a good idea to compare rates to confirm you are receiving the best rates possible.
  • Theft deterrents lower rates – Purchasing a vehicle with an alarm system can get you a discount on your car insurance. Theft prevention devices like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping auto theft.
  • Being married is a good thing – Being married helps lower the price on your policy. Having a significant other usually means you are more mature and responsible it has been statistically shown that being married results in fewer claims.
  • Never allow your policy to lapse – Letting your insurance expire will be a fast way to trigger a rate increase. And not only will insurance be more expensive, but not being able to provide proof of insurance might get you a steep fine or even jail time.You may then be required to submit proof of financial responsibility or a SR-22 with the New Jersey motor vehicle department.

Take discounts and save

Car insurance companies don’t always list every discount very clearly, so here is a list both well-publicized as well as the least known ways to save on car insurance.auto insurance image

  • Good Student – Performing well in school can save 20 to 25%. Earning this discount can benefit you up to age 25.
  • Sign Early and Save – Some insurance companies reward drivers for buying a policy before your current policy expires. It can save you around 10%.
  • Payment Discounts – If paying your policy premium upfront instead of making monthly payments you could save 5% or more.
  • New Car Discount – Insuring a new car can be considerably cheaper since new cars are generally safer.
  • Federal Government Employee – Active or retired federal employment may qualify you for a discount with certain companies.
  • No Charge for an Accident – Certain companies allow you one accident before your rates go up if you are claim-free for a certain period of time.
  • Lower Rates for Military – Being deployed with a military unit can result in better rates.
  • Safe Drivers – Insureds without accidents may receive a discount up to 45% less than drivers with accidents.

As a disclaimer on discounts, many deductions do not apply to the entire policy premium. A few only apply to the cost of specific coverages such as physical damage coverage or medical payments. So despite the fact that it appears you can get free auto insurance, companies wouldn’t make money that way.

Misconceptions in car insurance advertisements

State Farm, GEICO and Progressive regularly use television and radio advertisements. All the companies say the same thing about savings if you move to their company. How can each company claim to save you money? This is how they do it.

All companies are able to cherry pick for the right customer that is profitable for them. An example of a driver they prefer could possibly be between 25 and 40, insures multiple vehicles, and drives less than 10,000 miles a year. A customer who matches those parameters will get the preferred rates and is almost guaranteed to pay quite a bit less when switching companies.

Consumers who don’t measure up to this ideal profile will be charged a more expensive rate which usually ends up with business not being written. The ad wording is “customers who switch” not “everyone that quotes” save that much money. That is how companies can state the savings. That is why it is so important to compare as many rates as you can. It’s just too difficult to predict which car insurance company will have the lowest rates.

For more information

Additional detailed information can be found at the New Jersey Department of Banking and Insurance website. Visitors are able to find out industry alerts, find out which companies have the most complaints, read enforcement actions against agents and companies, and read state legal mandates and laws.

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Final thoughts

Consumers change insurance companies for many reasons like extreme rates for teen drivers, delays in responding to claim requests, questionable increases in premium and even policy non-renewal. Regardless of your reason, choosing a new insurance company is less work than it seems.

In this article, we covered some good ideas how to save on car insurance. The key thing to remember is the more price quotes you have, the better your comparison will be. You may even find the most savings is with a lesser-known regional company.

When shopping online for car insurance, don’t be tempted to skimp on coverage in order to save money. There are a lot of situations where an accident victim reduced collision coverage and found out when filing a claim that the savings was not a smart move. Your strategy should be to buy enough coverage at an affordable rate while not skimping on critical coverages.