How to Know You're Wasting Money for Auto Insurance in Cedar Grove

Did you fall for a flashy sales pitch and buy an overpriced auto insurance policy? Trust us when we tell you you're not the only one.

With consumers having so many choices, it's nearly impossible to locate the most cost effective company.

It's important to compare prices every six months because insurance rates are constantly changing. Just because you found the lowest price a couple years back you will most likely find a better rate today. Forget anything you know (or think you know) about auto insurance because you're about to learn the quickest way to eliminate unnecessary coverages and save money.

Buying car insurance in Cedar Grove is easy if you know what you're doing. Basically, every driver who is required by state law to have auto insurance stands a good chance to be able to save money. But New Jersey drivers do need to know how insurance companies sell online because it can help you find the best coverage.

Save big with these discounts

Car insurance companies don't necessarily list all their discounts very well, so we researched both well-publicized and also the lesser-known auto insurance savings.

Discount for Life Insurance - Select insurance companies reward you with a break if you buy life insurance from them.
Clubs and Organizations - Participating in a professional or civic organization could qualify you for a break on auto insurance.
Homeowners Discount - Owning a house in Cedar Grove may trigger a auto insurance policy discount because maintaining a house shows financial diligence.
Passive Restraints - Factory air bags and/or automatic seat belt systems can receive discounts of more than 20%.
Drive Less and Save - Low mileage vehicles could be rewarded with lower rates on the low mileage vehicles.
Claim Free - Drivers with accident-free driving histories pay much less as compared to drivers who are more careless.
Lower Rates for Military - Having a deployed family member could be rewarded with lower premiums.
Federal Government Employee - Active or retired federal employment can earn a discount up to 10% with select insurance companies.
Anti-theft System - Anti-theft and alarm systems are stolen less frequently and earn discounts up to 10%.
Discount for Swiching Early - Some companies give discounts for switching policies prior to your current policy expiring. The savings is around 10%.

Drivers should understand that most credits do not apply to all coverage premiums. Some only apply to specific coverage prices like collision or personal injury protection. So even though it sounds like you would end up receiving a 100% discount, companies wouldn't make money that way.

Auto insurance ads bend the truth

Auto insurance companies such as GEICO, State Farm and Progressive consistently run ads on TV and radio. They all seem to say the same thing that you'll save big if you change your coverage to them. But how can every company make almost identical claims? It's all in the numbers.

Different companies are able to cherry pick for the type of customer that earns them a profit. For instance, a desirable insured could possibly be over the age of 50, has no driving citations, and drives less than 10,000 miles a year. A driver who fits that profile will qualify for the lowest rates and most likely will save a lot of money.

Potential customers who fall outside this ideal profile will have to pay a higher premium which usually ends up with the driver buying from a lower-cost company. The ad wording is "customers who switch" not "people who quote" save that much money. That's the way companies can advertise the way they do. Because of the profiling, you should get as many comparisons as possible. It is impossible to predict which auto insurance company will provide you with the cheapest rates.

More detailed New Jersey auto insurance information is located at the New Jersey Department of Banking and Insurance website. New Jersey consumers can file complaints about an insurance agent or broker, find out which companies have the most complaints, report car insurance fraud, and file complaints about a company.

Also read more on Auto Insurance 101 and this page where you can research Cedar Grove insurance agents.

Shop smart and save

As you go through the steps to switch your coverage, don't be tempted to buy lower coverage limits just to save a few bucks. In many instances, someone sacrificed liability coverage limits only to discover later that the savings was not a smart move. The ultimate goal is to get the best coverage possible at the best price.

Budget-conscious auto insurance can be sourced online as well as from independent agents in Cedar Grove, and you should be comparing both to have the best rate selection. Some auto insurance companies don't offer you the ability to get quotes online and most of the time these small, regional companies sell through independent agents.

In this article, we presented a lot of information how to reduce auto insurance prices online. It's most important to understand that the more rate quotes you have, the better your comparison will be. You may even find the biggest savings come from some of the smallest insurance companies. Regional companies may only write in your state and offer lower rates than their larger competitors like .