Pricey car insurance can sap your savings account and maybe even restrict other spending. Doing a price comparison is free, only takes a few minutes, and is a good way to make sure you’re not throwing money away.
Because there are so many companies to choose from, it’s nearly impossible to pick the lowest price car insurance company.
Get cheap prices by understanding these factors
Lots of factors are part of the calculation when pricing auto insurance. Some of the criteria are obvious like a motor vehicle report, but other criteria are less apparent like where you live or how financially stable you are.
The items below are a few of the “ingredients” car insurance companies consider when setting prices.
- Raise your physical damage deductibles for better costs – Comprehensive and collision coverage deductibles define how much you are required to pay if you file a covered claim. Protection for physical damage, also known as collision and other-than-collision, protects your car from damage. Examples of some claims that would be covered would be collision with another vehicle, animal collisions, or theft of your vehicle. The larger the amount you have to pay, the lower your rates will be.
- Pay more if you have a long commute – Having an address in areas with lower population has definite advantages if you are looking for the lowest rates. City drivers tend to have much more traffic and more severe claims. Fewer drivers means less chance of accidents as well as less vandalism and auto theft.
- Annual miles is a factor – Driving more miles each year the higher your rates will be. Most companies calculate prices based upon how you use the vehicle. Cars that sit idle most of the time get more affordable rates than vehicles that are driven to work every day. It’s a smart idea to ensure your vehicle rating properly reflects the correct driver usage, because it can save money.
- Better car insurance rates on safer vehicles – Vehicles with good safety scores get lower rates. Safer cars reduce the chance of injuries and better occupant protection translates into savings for insurance companies which can result in lower premiums. If your car has at least an “acceptable” rating on the Insurance Institute for Highway Safety website you may be receiving a better rate.
- You might want pay the small policy claims yourself – If you file a lot of claims you shouldn’t be surprised to get either policy cancellation or increased premiums. Insurance companies in New Jersey award the best rates to insureds that do not abuse their auto insurance. Your insurance policy is intended for the large, substantial claims.
- Drivers with excellent credit save on car insurance – Having a bad credit rating can be a huge factor in determining what you pay. Drivers who have very good credit scores tend to be more responsible and file fewer claims than those with lower credit ratings. If your credit leaves room for improvement, you could potentially save money when insuring your vehicle if you improve your credit rating.
Discounts for lower New Jersey car insurance rates
Companies do not advertise every available discount in a way that’s easy to find, so the list below details some of the best known in addition to some of the lesser obvious credits available to lower your premiums when you .
- Full Payment Discount – By making one initial payment rather than paying in monthly installments you could save up to 5%.
- Service Members Pay Less – Having an actively deployed family member could qualify you for better prices.
- Organization Discounts – Participating in qualifying employment or professional organizations could qualify you for a break on your policy.
- Switch and Save Discount – A few companies allow discounts for renewing your policy before your current coverage expires. You could save around 10% when you .
- Anti-lock Brake System – Cars that have anti-lock braking systems prevent accidents and earn discounts up to 10%.
- Include Life Insurance and Save – Larger insurance carriers have lower prices if you buy life insurance.
- Telematics Data Discounts – Insureds that choose to allow their insurance company to monitor driving manner by using a small device installed in their vehicle such as Progressive’s Snapshot and State Farm’s In-Drive might get better premium rates if their driving habits are good.
One last thing about discounts, some credits don’t apply the the whole policy. Most cut the price of certain insurance coverages like liability, collision or medical payments. Despite the fact that it seems like all the discounts add up to a free policy, car insurance companies aren’t that generous.
To view companies that provide some of the discounts listed above in New Jersey, click here to view.
Local insurance agents
A small number of people just want to buy from a licensed agent and there is nothing wrong with that. Professional agents can help you build your policy and help you file claims. One of the best bonuses of comparing car insurance online is the fact that drivers can get cheap rate quotes and still have a local agent.
Upon completion of this quick form, the quote information is emailed to participating agents in Salem that can provide for your car insurance coverage. You won’t need to find an agent on your own due to the fact that quote results will go directly to you. If you have a need to get a comparison quote for a specific company, you just need to navigate to their website and submit a quote form there.
Picking an insurer requires more thought than just a cheap price quote. A good agent will have answers to these questions.
- What is the financial rating for the quoted company?
- Does the agent have professional designations like CIC, CPCU or AIC?
- Does the agent recommend any additional coverage?
- What companies can they write with?
- How much experience to they have in personal lines coverages?
- Is insurance their full-time profession?
- Will they make sure you get an adequate claim settlement?
If you are searching for a local insurance agency, it’s helpful to know the different agency structures and how they are distinctly different. Agencies in Salem can be classified as either independent or captive depending on the company they work for. Both types of agents can sell car insurance policies, but we need to point out the difference in how they write coverage since it could factor into the selection process.
These type of agents work for only one company and examples are State Farm, AAA, and Liberty Mutual. They usually cannot compare other company’s rates so you might not find the best rates. Captive insurance agents are well schooled on sales techniques which helps overcome the inability to quote other rates.
Independent Insurance Agents
Agents that elect to be independent do not sell for just one brand so they have the ability to put coverage through many companies and get the cheapest rates. If they find a cheaper price, the agent simply finds a different carrier and you don’t have to do anything. If you are trying to find cheaper rates, it’s a good idea to include rate quotes from a few independent agents so that you can do a thorough price comparison.
Shown below is a short list of independent agencies in Salem who can help you get rate quotes.
William T Mifflin Agency – 250 E Broadway – Salem, NJ 08079 – (856) 935-0070
Major Insurance – 41 8th St – Salem, NJ 08079 – (856) 935-2425
Henry D Young Insurance – 216 E Broadway – Salem, NJ 08079 – (856) 935-0845
To choose from more Salem insurance agents, view this full listing of Salem, NJ car insurance providers.
Brand name doesn’t guarantee savings
Consumers in New Jersey constantly see and hear ads for cheaper car insurance by State Farm and Allstate. They all seem to tend to make the same promise that people will save if you switch to them.
But how can every company save you money? This is how they do it.
Most companies have a certain “appetite” for the driver that will be a good risk. A good example of this type of risk profile might be described as over the age of 35, has a low-risk occupation, and insures a new vehicle. A customer getting a price quote that matches those criteria will probably get cheap premium rates and have a good chance to save when they switch companies.
Consumers who don’t measure up to these stringent criteria may be forced to pay a more expensive rate and ends up with the customer not purchasing. The ads say “people who switch” not “all people who quote” save that much money. That is how companies can truthfully make the claims of big savings. Different companies use different criteria so you should compare price quotes frequently. Because you never know which company will have the best premium rates for your profile.
Additional detailed information can be read at the New Jersey Department of Banking and Insurance website. Visitors are able to report car insurance fraud, read state legal mandates and laws, learn about insurance regulations, and find disaster information.
Other related articles:
- Free Guide to Paying Less for Salem Car Insurance Online
- Tips for Searching Online for a Salem Oregon Insurance Agent
- 6 Excellent Ways to Slash Car Insurance Rates in Salem
More comparisons equals lower rates
There are still a few companies who do not offer online quoting and these regional insurance providers work with independent agencies. Discount car insurance is available on the web in addition to many Salem insurance agents, and you need to comparison shop both to have the best chance of lowering rates.
When shopping online for car insurance, it’s a bad idea to reduce needed coverages to save money. There are too many instances where an insured cut uninsured motorist or liability limits to discover at claim time that they should have had better coverage. Your objective should be to purchase a proper amount of coverage for the lowest price while not skimping on critical coverages.