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

Paying for high-priced auto insurance can empty your savings account, especially in this economy. Comparison shopping is a smart way to cut your insurance bill. Insurance companies such as GEICO and Progressive constantly blast consumers with catchy ads and it is difficult to sift through the bull and find the best price available.

These discounts can lower your rates

Insurance can be prohibitively expensive, but there could be available discounts that you may not even be aware of. Certain discounts will be triggered automatically when you quote, but some may not be applied and must be asked about prior to getting the savings. If you aren't receiving every discount you deserve, you are throwing money away.

Fewer Miles Equal More Savings - Driving fewer miles could qualify for lower rates on the low mileage vehicles.
Accident Waiver - A handful of insurance companies allow you one accident before your rates go up so long as you haven't had any claims for a certain period of time.
Passive Restraints - Vehicles equipped with air bags or automatic seat belts can qualify for discounts of 20% or more.
No Accidents - Drivers who don't have accidents pay less when compared with drivers who are more careless.
Discount for Life Insurance - Companies who offer life insurance give better rates if you take out life insurance from them.
Drivers Ed for Students - Make teen driver coverage more affordable by requiring them to enroll in driver's education in school.

A little note about advertised discounts, most credits do not apply to all coverage premiums. Most only reduce specific coverage prices like liability and collision coverage. So when the math indicates you would end up receiving a 100% discount, you won't be that lucky. Any amount of discount will reduce the cost of coverage.

You have some control over your rates

Smart consumers have a good feel for some of the elements that go into determining the rates you pay for auto insurance. Having a good understanding of what impacts premium levels enables informed choices that could result in better auto insurance rates.

Extra add-on coverages are wasting money - There are many add-on coverages that you can get tricked into buying when buying auto insurance. Insurance for rental car reimbursement, accidental death and term life insurance are examples of these. These may sound like a good investment initially, but if they're wasting money eliminate the coverages to reduce your premium.
Are you male or female? - Statistics have proven women are more cautious behind the wheel. That doesn't necessarily mean that men are worse drivers. Men and women are in accidents at a similar rate, but the male of the species cause more damage. Men also tend to get cited for more serious violations like DUI and reckless driving. Youthful male drivers are the most expensive to insure and therefore are the most expensive to insure.
How credit affects auto insurance rates - A driver's credit score is a big factor in determining what you pay for auto insurance. If your credit score is lower than you'd like, you could potentially save money when insuring your by improving your credit score. Drivers who have good credit tend to be better drivers and file fewer claims than drivers who have poor credit.
Your occupation can affect rates - Did you know your occupation can influence how much you pay for auto insurance? Occupations such as real estate brokers, architects and dentists tend to have the highest average rates due to high stress levels and long work hours. Other occupations such as pilots, historians and homemakers receive lower rates.
Marriage brings a discount - Getting married can actually save you money when buying auto insurance. Having a spouse means you're more responsible and statistics show married drivers get in fewer accidents.
Where you live can impact rates - Residing in a small town is a positive aspect when talking about auto insurance. Fewer people translates into fewer accidents and a lower car theft rate. City drivers have more traffic problems and longer commute times. More time commuting can result in more accidents.

Are you falling for claims of savings?

Consumers in New Jersey get pounded daily by advertisements for car insurance savings by 21st Century, Allstate and State Farm. All the companies say the same thing about savings if you switch to their company.

How can each company claim to save you money? It's all in the numbers.

Different companies have a preferred profile for the driver that earns them a profit. A good example of a profitable customer might be between the ages of 40 and 55, insures multiple vehicles, and drives less than 10,000 miles a year. A customer getting a price quote who fits that profile will get the preferred rates and as a result will probably save when they switch companies.

Potential customers who are not a match for the requirements must pay a higher premium which usually ends up with the customer not buying. The ads state "customers who switch" not "everybody who quotes" save that much. This is how companies can truthfully advertise the way they do.

This illustrates why drivers should get quotes from several different companies. It's impossible to know which insurance companies will provide you with the cheapest rates.

Additional information can be read on the website for the New Jersey Department of Banking and Insurance found here. Visitors are able to discover disciplinary actions, learn about insurance regulations, find out industry alerts, and read industry bulletins.

And the best car insurance company is...

Cheaper auto insurance is available both online and also from your neighborhood Closter agents, so you should be comparing quotes from both to have the best rate selection. Some auto insurance companies may not provide you the ability to get quotes online and usually these small insurance companies provide coverage only through local independent agents.

We covered a lot of information how to reduce auto insurance prices online. The key thing to remember is the more companies you get rates for, the more likely it is that you will get a better rate. You may be surprised to find that the lowest priced auto insurance comes from a small mutual company. Regional companies may cover specific market segments cheaper than the large multi-state companies such as .

As you go through the steps to switch your coverage, it's a bad idea to skimp on coverage in order to save money. There are a lot of situations where drivers have reduced full coverage and found out when filing a claim that the savings was not a smart move. The proper strategy is to get the best coverage possible at the best price while not skimping on critical coverages.