Have you fallen victim to an underperforming, overpriced auto insurance policy? Trust us, you’re not the only one.
You have multiple car insurance companies to insure vehicles with, and even though it’s nice to have multiple companies, having more insurance companies makes it harder to find a good deal.
Smart consumers take time to compare prices before your policy renews because insurance rates are usually higher with each renewal. If you had the lowest rates last year other companies may now be cheaper. Starting right now, block out anything you think you know about auto insurance because you’re going to get a crash course in the only way to find lower rates on auto insurance.
How to Compare Auto Insurance Quotes in Union City, New Jersey
There are multiple methods to compare auto insurance quotes, but some are more efficient than others. You can waste hours talking to agents in Union City, or you could save time and use the internet to achieve your goal.
Most of the larger companies belong to an insurance system that enables customers to enter their coverage request one time, and at least one company returns a competitive quote. This prevents consumers from doing quote requests for every auto insurance company.
To fill out one form to compare multiple rates now click here to open in new window.
The single downside to using this type of system is you don’t know exactly which companies you want pricing from. So if you prefer to pick individual companies to receive pricing from, we put together a list of auto insurance companies in New Jersey. Click here to view list.
It’s up to you how you get prices quotes, just be sure to compare apples-to-apples information for every company. If each company quotes different deductibles it will be very difficult to find the best deal in Union City. Having just a slight variation in coverage limits can result in a big premium difference. And when comparison shopping, quoting more helps locate better pricing.
Misconceptions in auto insurance advertisements
Allstate and Progressive constantly bombard you with television and radio advertisements. All the companies make the same claim that you can save if you switch your policy. How does each company make almost identical claims? This is how they do it.
Different companies have a preferred profile for the type of customer that earns them a profit. An example of a desirable insured might be a mature driver, insures multiple vehicles, and chooses high deductibles. A customer getting a price quote who meets those qualifications will qualify for the lowest rates and therefore will cut their rates substantially.
Consumers who do not match these standards will be quoted higher rates and this can result in business going elsewhere. The ad wording is “customers who switch” not “everybody who quotes” save money. That is how companies can truthfully advertise the savings. This emphasizes why you need to quote coverage with many companies. It’s not possible to predict which company will have the lowest rates.
You probably qualify for some discounts
Auto insurance companies do not advertise every discount in an easy-to-find place, so we researched some of the more common and the more hidden auto insurance savings.
- One Accident Forgiven – A handful of insurance companies will allow you to have one accident before hitting you with a surcharge as long as you don’t have any claims prior to the accident.
- Discount for Life Insurance – Select insurance companies reward you with a discount if you purchase a life insurance policy as well.
- E-sign – Some insurance companies may give you up to $50 simply for signing online.
- Good Student Discount – Getting good grades can earn a discount of 20% or more. This discount can apply well after school through age 25.
- Federal Government Employee – Being employed by or retired from a federal job can save as much as 8% with select insurance companies.
- Drivers Education – Cut your cost by having your teen driver successfully complete driver’s ed class if offered at their school.
- Organization Discounts – Affiliation with a professional or civic organization could trigger savings on auto insurance.
- Anti-lock Brake System – Anti-lock brake equipped vehicles prevent accidents and will save you 10% or more.
- Payment Discounts – By paying your policy upfront instead of monthly or quarterly installments you can actually save on your bill.
A little note about advertised discounts, some of the credits will not apply to your bottom line cost. Most only reduce the price of certain insurance coverages like collision or personal injury protection. So despite the fact that it appears you would end up receiving a 100% discount, you’re out of luck.
Won’t my local insurance agent miss me?
Some consumers just want to talk to a local agent and that is a personal choice. The biggest benefit of getting online price quotes is that you can obtain better rates but also keep your business local.
After completing this short form, the coverage information is transmitted to local insurance agents in Union City who will return price quotes to get your business. There is no reason to drive around since price quotes are sent directly to your email. How cool is that?! You can find better rates without the usual hassles of price shopping.
Deciding on a company requires more thought than just a low price. Any agent should be forthright in answering these questions:
- Can they provide you with a list of referrals?
- Do they specialize in personal lines coverage?
- Do they receive special compensation for putting your coverage with one company over another?
- If you are a high risk driver, do they have special markets for your coverage?
- If your car is in the repair shop, do you have coverage for a rental car?
- Is working in the agency their full-time job?
- What insurance company do they write the most business with?
The type of insurance agency you choose is important
If you’re trying to find a reliable agent, there are a couple of different agency structures to choose from. Union City agents can either be captive or independent.
These agents can only place business with one company and examples are American Family, State Farm and Allstate. Captives cannot provide prices from multiple companies so they are skilled at selling on more than just price. Captives are well schooled in insurance sales which helps them compete with independent agents.
Independent Agents (or Brokers)
Independent agencies are not employed by any specific company but instead can place your coverage with lots of companies depending on which coverage is best. To transfer your coverage to a different company, the agent simply finds a different carrier without you having to go to a different agency.
When comparison shopping, it’s recommended you include price quotes from multiple independent agents to get the best comparison.
The following is a list of independent agencies in Union City that are able to give price quote information.
ARP Insurance Inc – 4215 New York Ave – Union City, NJ 07087 – (201) 348-6963
Protection Insurance – 410 43rd St – Union City, NJ 07087 – (201) 865-7742
Joseph Bonacci Agency – 1014 Kennedy Blvd – Union City, NJ 07087 – (201) 866-2926
Viva Agency – 418 35th St – Union City, NJ 07087 – (201) 271-1133
To view a full list of licensed insurance agents in Union City, go to this page.
Once you have answers to your satisfaction to these questions and locked in a price quote, you may have just found an insurance agent that will insure your vehicles.
Detailed coverages of your auto insurance policy
Learning about specific coverages of auto insurance helps when choosing appropriate coverage at the best deductibles and correct limits. The terms used in a policy can be confusing and even agents have difficulty translating policy wording. Below you’ll find the usual coverages found on most auto insurance policies.
Uninsured/Underinsured Motorist (UM/UIM)
Your UM/UIM coverage provides protection from other motorists when they are uninsured or don’t have enough coverage. Covered claims include medical payments for you and your occupants and damage to your vehicle.
Because many people carry very low liability coverage limits (15/30/5), their limits can quickly be used up. So UM/UIM coverage is very important.
Liability auto insurance
Liability coverage protects you from damage or injury you incur to other’s property or people that is your fault. This coverage protects you from claims by other people, and doesn’t cover your own vehicle damage or injuries.
Coverage consists of three different limits, bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. Your policy might show policy limits of 100/300/100 that translate to $100,000 in coverage for each person’s injuries, $300,000 for the entire accident, and a limit of $100,000 paid for damaged property.
Liability coverage protects against claims like loss of income, repair costs for stationary objects and court costs. How much liability should you purchase? That is a personal decision, but you should buy as high a limit as you can afford. New Jersey state minimum liability requirements are 15,000/30,000/5,000 but drivers should carry better liability coverage.
Collision insurance pays to fix your vehicle from damage caused by collision with a stationary object or other vehicle. You have to pay a deductible then your collision coverage will kick in.
Collision can pay for claims like crashing into a ditch, crashing into a building, sideswiping another vehicle and colliding with a tree. Paying for collision coverage can be pricey, so consider dropping it from vehicles that are 8 years or older. It’s also possible to raise the deductible to bring the cost down.
Med pay and Personal Injury Protection (PIP)
Coverage for medical payments and/or PIP reimburse you for immediate expenses for hospital visits, prosthetic devices and pain medications. They can be used to fill the gap from your health insurance program or if you are not covered by health insurance. Coverage applies to you and your occupants and also covers getting struck while a pedestrian. Personal injury protection coverage is not universally available and may carry a deductible
Comprehensive insurance coverage covers damage caused by mother nature, theft, vandalism and other events. A deductible will apply then the remaining damage will be covered by your comprehensive coverage.
Comprehensive can pay for things such as theft, falling objects and fire damage. The maximum amount you can receive from a comprehensive claim is the market value of your vehicle, so if your deductible is as high as the vehicle’s value it’s probably time to drop comprehensive insurance.
Quote often and quote early
Cheap auto insurance can be bought from both online companies as well as from independent agents in Union City, and you need to comparison shop both to have the best rate selection. Some insurance providers don’t offer you the ability to get quotes online and many times these small insurance companies only sell through independent insurance agents.
In this article, we covered many ways to get a better price on auto insurance. The most important thing to understand is the more times you quote, the better your chances of lowering your rates. You may even discover the best price on auto insurance is with an unexpected company. Smaller companies can often insure niche markets at a lower cost compared to the large companies like Progressive and Geico.
More New Jersey auto insurance resources
Even more information can be found at the New Jersey Department of Banking and Insurance website. Consumers can find disaster information, read consumer alerts, and file complaints about an insurance agent or broker.