How to Know You're Spending Too Much for Auto Insurance in Belford

Paying for high-priced auto insurance can overdraw your savings account and force you to make sacrifices. Comparison shopping is a smart way to help make ends meet.

Consumers have many to buy insurance from, and even though it's nice to have multiple companies, it can be more difficult to compare rates.

It's important to compare rates yearly because prices are constantly changing. Even if you think you had the lowest price a year ago you will most likely find a better rate today. There is too much inaccurate information about auto insurance on the web, but we're going to give you some great ways to put money back in your pocket.

These discounts can lower your rates

Companies that sell car insurance don't list every available discount very clearly, so we researched both the well known as well as the least known auto insurance savings.

Anti-lock Brake Discount - Cars that have steering control and anti-lock brakes can avoid accidents and therefore earn up to a 10% discount.
Discount for Life Insurance - Companies who offer life insurance give a discount if you purchase auto and life insurance together.
Safety Course Discount - Taking part in a defensive driving course could cut 5% off your bill if you qualify.
Resident Student - Children who are attending college and don't have a car can be insured at a reduced rate.
Accident Waiver - Certain companies will forgive one accident before your rates go up if you are claim-free for a particular time prior to the accident.
Clubs and Organizations - Being a member of a qualifying organization could qualify you for a break on your policy.

A little note about advertised discounts, most credits do not apply to your bottom line cost. Most only cut individual premiums such as comprehensive or collision. Even though it may seem like having all the discounts means you get insurance for free, you won't be that lucky.

Different people need different coverages

When it comes to buying the best auto insurance coverage for your personal vehicles, there isn't really a perfect coverage plan. Everyone's needs are different and a cookie cutter policy won't apply. For instance, these questions can help discover whether you may require specific advice.

Can I get a multi-policy discount for packaging my home and auto coverage?
What happens if I owe more than my vehicle is worth?
Should I rate my vehicle as pleasure use or commute?
Why does it cost so much to insure a teen driver in Belford?
I have good health insurance, so how much medical payments coverage do I need?
Am I getting all the discounts available?
What can I do if my company won't pay a claim?

If you don't know the answers to these questions but you think they might apply to your situation, you may need to chat with a licensed insurance agent. If you want to speak to an agent in your area, fill out this quick form or click here for a list of auto insurance companies in your area.

Are you falling for claims of savings?

Companies like Allstate and Progressive consistently run ads on television and other media. All the ads say the same thing about savings if you change to their company. How does each company claim to save you money?

All the different companies have a preferred profile for the driver that earns them a profit. For instance, a preferred risk might be over the age of 50, has no prior claims, and has excellent credit. A customer getting a price quote who fits that profile will qualify for the lowest rates and as a result will probably save when switching.

Drivers who are not a match for these standards will be charged higher premiums which usually ends up with the customer not buying. The ad wording is "customers that switch" not "everybody who quotes" save that much. This is how companies can truthfully make those claims. That is why you should get quotes from several different companies. It's impossible to know which insurance companies will have the lowest rates.

Learn more about auto insurance in New Jersey

Even more information is located at the New Jersey Department of Banking and Insurance website. Visitors are able to find out industry alerts, file complaints about an insurance agent or broker, discover disciplinary actions, and read enforcement actions against agents and companies.

The best insurance company isn't always the cheapest

While you're price shopping online, it's very important that you do not buy lower coverage limits just to save a few bucks. Too many times, consumers will sacrifice collision coverage and learned later they didn't purchase enough coverage. The aim is to purchase a proper amount of coverage at a price you can afford, not the least amount of coverage.

Cheaper auto insurance is attainable both online and also from your neighborhood Belford agents, and you should be comparing both to have the best chance of lowering rates. Some companies may not provide you the ability to get quotes online and many times these small, regional companies only sell through independent insurance agents.