Finding the cheapest Hoboken auto insurance on the web may be rather challenging for people who are new to buying insurance online. When there are so many companies competing online, how can you possibly compare the different rates to find the lowest price?
Be sure to get all your discounts
The price of auto insurance can be rather high, but discounts can save money and there are some available to help bring down the price. A few discounts will automatically apply at the time of quoting, but some must be specially asked for prior to getting the savings.
- Senior Discount – Mature drivers may receive a small decrease in premiums.
- College Student – Kids in college who live away from home and do not have a car can receive lower rates.
- Safety Course Discount – Taking a driver safety course could cut 5% off your bill and easily recoup the cost of the course.
- Early Switch Discount – Select companies give a discount for switching policies prior to your current policy expiration. It’s a savings of about 10%.
- Theft Prevention Discount – Anti-theft and alarm systems are stolen less frequently and earn discounts up to 10%.
- One Accident Forgiven – A handful of insurance companies will allow you to have one accident before raising your premiums so long as you haven’t had any claims for a certain period of time.
- Clubs and Organizations – Being a member of certain professional organizations could trigger savings on auto insurance.
Keep in mind that some of the credits will not apply to the overall cost of the policy. Some only reduce individual premiums such as liability, collision or medical payments. So even though they make it sound like adding up those discounts means a free policy, it just doesn’t work that way. But any discount will bring down the amount you have to pay.
For a list of companies offering auto insurance discounts in New Jersey, click this link.
Comprehensive Hoboken Auto Insurance Comparison
There are a lot of ways to compare auto insurance quotes, but there is one way that is easier and takes less work. You can waste a few hours (or days) discussing policy coverages with local insurance agents in Hoboken, or you can stay home and use online quotes to quickly compare rates.
The majority of car insurance companies are enrolled in a marketplace that allows shoppers to enter their coverage request one time, and at least one company provides a quote based on that data. This saves time by eliminating repetitive form submissions for every auto insurance company. To compare pricing click to open in new window.
The only downside to using this type of system is you don’t know exactly which companies to get pricing from. So if you want to select individual companies to compare rates, we have a page of the cheapest auto insurance companies in New Jersey. Click to view list.
Which method you use is up to you, but double check that you are using apples-to-apples quote information with each company. If you use different liability limits you will not be able to make a fair comparison in Hoboken. Just a small difference in limits can make a big difference in price. Just keep in mind that quoting more provides better odds of finding better pricing.
How insurance companies determine rates
Smart consumers have a good feel for some of the elements that help determine the price you pay for auto insurance. Knowing what determines base rates allows you to make educated decisions that can help you get better auto insurance rates.
The following are some of the items companies use to determine your rates.
- High numbers of claims are not good – Companies in New Jersey provide better rates to policyholders who are claim-free. If you tend to file frequent claims, you can pretty much guarantee either higher rates or even cancellation. Car insurance is intended to be relied upon for major claims that would cause financial hardship.
- Car features impact rates – Driving a car that has an advanced theft prevention system can get you a discount on your auto insurance. Theft prevention devices like GM’s OnStar, tamper alarm systems and vehicle immobilizers all hinder your car from being stolen.
- Don’t let your coverage lapse – Not having insurance can get your license suspended and auto insurance companies will penalize you for letting your coverage have a gap. Not only will you pay more, but not being able to provide proof of insurance will get you a hefty fine and possibly a revoked license.Then you may be required to prove you have insurance by filing a SR-22 with the New Jersey motor vehicle department.
- Protect your assets with liability insurance – The liability section of your policy provides coverage if ever you are found liable for personal injury or accident damage. Liability provides you with a defense in court which can be incredibly expensive. This coverage is very inexpensive compared to insuring for physical damage coverage, so do not skimp.
- Pleasure use saves money – Driving more miles every year the more you will pay for auto insurance. Most companies price each vehicle’s coverage based upon how you use the vehicle. Cars not used for work or commuting can get a lower rate as compared to vehicles used primarily for driving to work. Ask your agent if your auto insurance coverage is rated on the proper vehicle usage, because it can save money.
- Younger drivers pay higher rates – Teenage drivers in New Jersey tend to get distracted easily behind the wheel so they pay higher auto insurance rates. Having to add a young driver to your policy can break the bank. Older drivers are more responsible, tend to file fewer claims and are safer drivers.
- Do you need the policy add-ons? – There are many extra coverages that can waste your money on your policy. Insurance for personal injury protection, accident forgiveness and membership fees may be wasting your money. They may seem like a good idea when talking to your agent, but your needs may have changed so eliminate the coverages to reduce your premium.
- Pay less if you’re married – Having a spouse actually saves money when buying auto insurance. Having a spouse translates into being more responsible and it’s proven that married drivers get in fewer accidents.
How do I know if I need professional advice?
When buying the right insurance coverage for your vehicles, there is no single plan that fits everyone. Each situation is unique.
These are some specific questions might help in determining whether your personal situation would benefit from professional advice.
- If my vehicle is totaled, can I afford another vehicle?
- Does liability extend to a camper or trailer?
- Do I benefit by insuring my home with the same company?
- Does coverage extend to a rental car in a foreign country?
- Am I covered when renting a car or should I buy coverage from the car rental agency?
- Where can I get insurance after a DUI in New Jersey?
- Do I need medical payments coverage since I have good health insurance?
- Can I afford to pay high deductible claims out of pocket?
- Is my vehicle covered for smoke damage?
- Do I have coverage when making deliveries for my home business?
If you don’t know the answers to these questions but a few of them apply, you may need to chat with an insurance agent. To find lower rates from a local agent, take a second and complete this form.
Beware of misleading auto insurance ads
Companies like State Farm, Allstate and Geico continually stream ads in print and on television. All the ads make the same claim that you’ll save big after switching your policy. How can each company make the same claim? It’s all in the numbers.
Different companies can use profiling for the type of driver they prefer to insure. A good example of a profitable customer could be over the age of 40, has no driving citations, and drives newer vehicles. Any driver that hits that “sweet spot” is entitled to the best price and as a result will probably pay quite a bit less when switching companies.
Consumers who do not match these standards will be charged a more expensive rate which usually ends up with the driver buying from a lower-cost company. Company advertisements say “people who switch” not “everybody who quotes” save money. That is how insurance companies can confidently advertise the way they do.
That is why you should compare as many rates as you can. It’s not possible to predict which company will fit your personal profile best.
Final thoughts
As you shop your coverage around, you should never skimp on coverage in order to save money. There have been many cases where an accident victim reduced comprehensive coverage or liability limits and found out when filing a claim they didn’t purchase enough coverage. Your goal should be to purchase a proper amount of coverage at a price you can afford while still protecting your assets.
Consumers change insurance companies for a number of reasons such as an unsatisfactory settlement offer, extreme rates for teen drivers, high prices and unfair underwriting practices. It doesn’t matter why you want to switch finding a great new company can be easier than you think.
Throughout this article, we presented many ways to shop for auto insurance online. The key thing to remember is the more rate comparisons you have, the more likely it is that you will get a better rate. You may even find the lowest premiums are with the least-expected company.
More information is located on the New Jersey Department of Banking and Insurance website through this link. Consumers can read consumer alerts, report car insurance fraud, and find out which companies have the most complaints.