Comparison shopping for Bayonne auto insurance is difficult for consumers not familiar with comparison shopping online. Drivers have so many options that it can easily become more work than you anticipated to locate the lowest price in Bayonne.
It’s a good habit to shop coverage around at least once a year because prices trend upward over time. Even if you think you had the lowest price six months ago other companies may now be cheaper. So just block out anything you think you know about auto insurance because you’re going to learn the proper way to save on auto insurance.
What impacts Bayonne insurance rates?
It’s important that you understand some of the elements that play a part in calculating auto insurance rates. When you know what positively or negatively determines base rates helps enable you to make changes that will entitle you to much lower annual insurance costs.
Shown below are a few of the “ingredients” that factor into prices.
- Do you need those extra coverages? – There are a ton of additional coverages that can waste your money on your auto insurance policy. Things like rental car reimbursement, accident forgiveness and motor club memberships may be costing you every month. They may seem like a good idea at first, but if you don’t need them remove them from your policy.
- Mature drivers pay less – Older insureds are more cautious drivers, tend to cause fewer accidents and tend to be better behind the wheel. Teenage drivers are known to be careless and easily distracted when behind the wheel and because of this, their auto insurance rates are much higher.
- Consolidate policies to earn discounts – Most insurers will give a discount to customers who have multiple policies with them. It’s known as a multi-policy discount. Discounts can amount to five, ten or even twenty percent. Even though this discount sounds good, you still need to comparison shop to ensure the best deal.
- Special features that cut premiums – Purchasing a vehicle with anti-theft technology or alarm system can save you a little every year. Theft prevention devices like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping your car from being stolen.
- Never allow your policy to lapse – Allowing your coverage to lapse will be a sure-fire way to bump up your auto insurance costs. And not only will your rates increase, failure to provide proof of insurance might get you a steep fine or even jail time.
- Performance makes a difference – The performance of the vehicle you are buying insurance for makes a huge difference in your rates. The cheapest insurance rates are usually for lower performance four cylinder passenger models, but the final cost of insurance is determined by many other factors.
- Do you work long hours in a high stress job? – Jobs such as real estate brokers, business owners and dentists have the highest average rates in part from high stress and lengthy work days. Other jobs such as farmers, historians and the unemployed get better rates.
Compare Auto Insurance Today
When shopping for auto insurance there are multiple ways to compare rate quotes from local in Bayonne, NJauto insurance companies. One of the best ways to compare insurance prices is to use the internet to compare rates. This can be done in just a few minutes using one of these methods.
- The recommended way consumers can make multiple comparisons is an all-inclusive rate comparison (click to open form in new window). This easy form saves time by eliminating separate forms for each company you want a rate for. A single, simple form will get you price quotes from all major companies. It’s definitely the quickest method.
- A slightly less efficient method to compare prices is spending the time to visit each individual company website to complete their respective quote request forms. For examples sake, we’ll assume you want to compare State Farm, Farmers and Allstate. You would have to visit each site to enter your coverage information, which is why most consumers use the first method. For a list of links to companies insuring cars in Bayonne, click here.
It’s up to you which method you use, but make darn sure you compare the exact same coverages and limits for every quote you compare. If each company quotes different values for each quote it will be very difficult to make a fair comparison in Bayonne. Having just a slight variation in coverage limits can result in a big premium difference. Just remember that obtaining a wide range of quotes helps you find a better price.
The fine print in auto insurance ads
Auto insurance companies such as Allstate, GEICO and Progressive regularly use television and radio advertisements. They all seem to make the same claim that you can save if you move to them. How do they all make the same claim?
Different companies have a preferred profile for the type of customer they prefer to insure. For example, a profitable customer could be over the age of 40, has no prior claims, and has a short commute. Any driver who matches those parameters will get very good rates and is almost guaranteed to save a lot of money.
Potential customers who don’t qualify for this ideal profile will be quoted higher premiums which usually ends up with business not being written. The ads state “customers that switch” but not “drivers who get quotes” save that kind of money. This is how insurance companies can confidently make the claims of big savings.
This emphasizes why drivers must compare many company’s rates. You cannot predict the company that will give you the biggest savings.
Don’t overlook these discounts
Insurance can be prohibitively expensive, but you can get discounts to help offset the cost. Some discounts apply automatically when you get a quote, but less common discounts must be asked for prior to getting the savings.
- Drive Less and Save – Driving fewer miles could qualify for lower rates on the low mileage vehicles.
- Discount for Good Grades – Performing well in school can earn a discount of 20% or more. The discount lasts well after school through age 25.
- Safe Drivers – Drivers who don’t get into accidents can get discounts for up to 45% lower rates than their less cautious counterparts.
- Senior Discount – If you qualify as a senior citizen, you may receive better auto insurance rates.
- Service Members Pay Less – Being deployed with a military unit could be rewarded with lower premiums.
- Auto/Home Discount – If you have multiple policies with one company you may save approximately 10% to 15%.
As a disclaimer on discounts, most credits do not apply to all coverage premiums. The majority will only reduce the cost of specific coverages such as comprehensive or collision. Even though it may seem like adding up those discounts means a free policy, auto insurance companies aren’t that generous. Any amount of discount will cut your premiums.
To choose insurers who offer auto insurance discounts in Bayonne, click here.
Is my situation unique?
When it comes to choosing the right insurance coverage, there really is no perfect coverage plan. Each situation is unique.
Here are some questions about coverages that may help you determine if your insurance needs would benefit from an agent’s advice.
- Do I benefit by insuring my home with the same company?
- Do I have any recourse if my insurance company denies a claim?
- What is high-risk coverage and where do I buy it?
- Are rental cars covered under my policy?
- What are the best liability limits?
- Who is covered when they drive my vehicle?
- How many claims can I have before being cancelled?
- Will my vehicle be repaired with OEM or aftermarket parts?
If it’s difficult to answer those questions but one or more may apply to you, you might consider talking to an insurance agent. If you want to speak to an agent in your area, simply complete this short form.
Additional information is available on the New Jersey Department of Banking and Insurance website located here. New Jersey drivers can read industry bulletins, find out which companies have the most complaints, read enforcement actions against agents and companies, and find out industry alerts.
One last thing about your coverage
You just learned some good ideas how you can lower your auto insurance rates. The key concept to understand is the more you quote, the higher the chance of saving money. Consumers may even find the lowest rates come from the least-expected company.
While you’re price shopping online, never buy lower coverage limits just to save a few bucks. There have been many situations where an insured cut comprehensive coverage or liability limits only to regret at claim time that it was a big mistake. Your aim should be to buy enough coverage for the lowest price while still protecting your assets.
People leave their current company for any number of reasons including questionable increases in premium, lack of trust in their agent, poor customer service or not issuing a premium refund. Regardless of your reason for switching companies, finding a new company is pretty easy and you might even save some money in the process.