Follow These Insider Tips for Lower New Brunswick Auto Insurance

Are you overwhelmed by the crazy number of auto insurance companies in New Brunswick? You’re not the only one! People have so many choices that it can easily become a challenge to locate the lowest price.

You need to price shop coverage before your policy renews since insurance rates are usually higher with each renewal. Just because you had the lowest rates last year you can probably find a better price now. So forget anything you know (or think you know) about auto insurance because it’s time to teach you the best methods to save on auto insurance.

How to Compare Auto Insurance Costs in New Brunswick

There are a variety of methods you can shop for auto insurance but there is one way that is more efficient than others. You could waste a few hours talking about coverages with local insurance agents in New Brunswick, or you can stay home and use online quotes to get rate comparisons in just a few minutes.

Most major companies are enrolled in a marketplace that allows shoppers to enter their policy data once, and every company can give them a price based on the submitted data. This eliminates the need for quote forms for each company you want a rate for.

To enter your information into the quoting system, click to open in new window.

The one disadvantage to pricing coverage this way is you are unable to specify which companies you want pricing from. If you would rather choose from a list of companies to compare prices, we have a page of companies who write auto insurance in New Jersey. Click here to view list.

It doesn’t matter which method you choose, just make sure you use the exact same coverage information for every quote you compare. If you have different limits and deductibles on each one you will not be able to determine which rate is truly the best in New Brunswick.

How can Progressive, Allstate and GEICO save drivers who switch?

New Jersey drivers can’t ignore all the ads that promise big savings from companies such as Progressive, Allstate and GEICO. All the ads make an identical promise about savings if you move your policy.

But how can every company say the same thing?

Different companies have a preferred profile for the driver they prefer to insure. For instance, a desirable insured might be between 25 and 40, owns a home, and drives less than 10,000 miles a year. A propective insured that hits that “sweet spot” is entitled to the best price and most likely will save when switching.

Potential customers who do not match the requirements will be charged higher prices which leads to the driver buying from a lower-cost company. The ad wording is “people who switch” not “people who quote” save that kind of money. This is how companies can make the claims of big savings. That is why drivers must compare as many rates as you can. You cannot predict the company that will fit your personal profile best.

How insurance companies determine rates

Smart consumers have a good feel for the rating factors that come into play when calculating the price you pay for auto insurance. Having a good understanding of what controls the rates you pay helps enable you to make changes that can help you get big savings.

The list below includes some of the factors that factor into your rates.

  • Consolidate policies to earn discounts – Many auto insurance companies provide better rates to insureds who consolidate policies with them, otherwise known as a multi-policy discount. Even with this discount, it’s still a good idea to compare other company rates to ensure the best deal.
  • Small claims can cost you – If you tend to file frequent claims, you can expect either higher rates or even cancellation. Auto insurance companies in New Jersey provide discounts to drivers who are claim-free. Car insurance is intended for the bigger claims that can’t be paid out-of-pocket.
  • Poor credit can mean higher rates – A driver’s credit history is a large factor in your rate calculation. If your credit history is not that good, you could save money insuring your by spending a little time repairing your credit. Consumers who have excellent credit tend to be less risk to insure than drivers with lower credit scores.
  • Where you live is a factor – Residing in small towns and rural areas can save you money when it comes to auto insurance. City drivers have to deal with traffic congestion and much longer commute distances. Lower population translates into fewer accidents and also fewer theft and vandalism claims.
  • Your occupation can affect rates – Occupations like doctors, business owners and accountants have higher rates than average because of stressful work requirements and lots of time spent at work. On the flip side, occupations such as pilots, athletes and retirees get better rates.
  • Being married is a good thing – Being married actually saves money on your policy. Marriage is viewed as being more responsible and statistics show being married results in fewer claims.
  • Higher safety ratings means cheaper insurance – Cars with high safety ratings get lower rates. Safer cars result in less severe injuries and lower injury rates translates into fewer and smaller insurance claims passed on to you as lower rates.

These discounts can slash auto insurance rates

Auto insurance companies do not advertise every discount very well, so we took the time to find both the well known as well as the least known savings tricks you should be using. If you don’t get every credit you deserve, you are paying more than you should be.

  • More Vehicles More Savings – Buying coverage for multiple cars or trucks on one policy qualifies for this discount.
  • Military Discounts – Being deployed with a military unit could be rewarded with lower premiums.
  • Bundle and Save – When you have multiple policies with the same insurance company you will save up to 20% off your total premium.
  • Seat Belt Usage – Buckling up and requiring all passengers to use their safety belts can save 10% or more off the personal injury premium cost.
  • Student in College – Children who live away from home without a vehicle on campus can receive lower rates.
  • Defensive Driving Course – Taking a driver safety course could possibly earn you a 5% discount if you qualify.
  • Payment Discounts – If you pay your bill all at once instead of making monthly payments you could save 5% or more.

It’s important to understand that many deductions do not apply to the overall cost of the policy. Some only apply to specific coverage prices like comprehensive or collision. Even though it may seem like having all the discounts means you get insurance for free, auto insurance companies aren’t that generous.

For a list of insurance companies with discount auto insurance rates in New Jersey, click this link.

Best coverage at the best price

We’ve covered many ways to save on auto insurance. The most important thing to understand is the more rate comparisons you have, the more likely it is that you will get a better rate. You may even find the most savings is with a lesser-known regional company.

Budget-conscious auto insurance can be purchased from both online companies and with local New Brunswick insurance agents, so you should compare both to have the best chance of lowering rates. Some insurance companies do not offer online price quotes and usually these smaller companies provide coverage only through local independent agents.

When shopping online for auto insurance, do not buy lower coverage limits just to save a few bucks. There are too many instances where an insured cut physical damage coverage to discover at claim time they didn’t purchase enough coverage. The ultimate goal is to purchase plenty of coverage at an affordable rate while still protecting your assets.

More tips and info about auto insurance can be found at the New Jersey Department of Banking and Insurance website. Visitors are able to download brochures, find out which companies have the most complaints, and view agent and company licensing information.