Tightwads Guide to Saving on Cranford Auto Insurance

Overpriced auto insurance can empty your bank account and put the squeeze on your family's finances. Shopping your coverage around is free, only takes a few minutes, and is a good way to help make ends meet. With so many auto insurance companies to choose from, it can be challenging to find the most cost effective company.

It's important to get comparison quotes quite often since insurance rates are constantly changing. Just because you found the best deal a couple years back you can probably find a better price now. Starting now, ignore everything you know about auto insurance because it's time to teach you the proper way to save on auto insurance.

Understand what determines the rate you pay

Consumers need to have an understanding of the different types of things that play a part in calculating auto insurance rates. When you know what positively or negatively influences your rates helps enable you to make changes that can help you get lower auto insurance prices.

Shown below are some of the factors that factor into your rates.

  • Traffic citations inflate rates - Even a single speeding ticket may increase your cost by twenty percent. Drivers with clean records have lower premiums than their less careful counterparts. Drivers who get dangerous violations such as hit and run, DWI or reckless driving convictions may be required to submit a SR-22 or proof of financial responsibility with the DMV in their state in order to prevent a license revocation.
  • With age comes lower rates - Teenage drivers in New Jersey have a tendency to be less responsible when driving so auto insurance rates are higher. Adding a young driver onto your auto insurance can break the bank. More mature drivers tend to be more responsible, tend to file fewer claims and are safer drivers.
  • Increase deductibles and save - Physical damage coverage, commonly called comprehensive (or other-than-collision) and collision coverage, protects your car from damage. Some examples of claims that would be covered are a windshield shattered by a rock, damage caused by hail, or theft. Deductibles for physical damage are the amount of money you are willing to pay out-of-pocket in the event of a claim. The more money the insured has to pay upfront, the bigger discount you will receive.
  • One company can mean more discounts - Some insurers give discounts to people who have multiple policies with them, otherwise known as a multi-policy discount. Even with this discount, you still need to comparison shop to confirm you are receiving the best rates possible.
  • Frequent auto insurance claims increase rates - Insurance companies in New Jersey award discounts to drivers who do not rely on their insurance for small claims. If you file claims often, you can look forward to either policy cancellation or increased premiums. Auto insurance is intended to be relied upon for the bigger claims that can't be paid out-of-pocket.

New Jersey auto insurance

Be sure to get all your discounts

Car insurance can cost a lot, but companies offer discounts that you may not know about. Larger premium reductions will be automatically applied at the time you complete a quote, but some must be asked about prior to getting the savings. If you don't get every credit you deserve, you are paying more than you should be.

  • Good Student Discount - This discount can get you a discount of up to 25%. The discount lasts up until you turn 25.
  • Senior Discount - If you're over the age of 55, you may receive a discount up to 10%.
  • Multiple Cars - Buying insurance for all your vehicles with the same company may reduce the rate for each vehicle.
  • Anti-theft Discount - Cars that have factory anti-theft systems are stolen less frequently and will save you 10% or more.
  • Driver's Ed - Cut your cost by having your teen driver take driver's ed class if offered at their school.

Keep in mind that most discounts do not apply to the overall cost of the policy. Most only reduce individual premiums such as medical payments or collision. So when the math indicates all the discounts add up to a free policy, it just doesn't work that way. But any discount will help reduce the amount you have to pay.

To choose providers with discount auto insurance rates in New Jersey, click here to view.

Is there truth in advertising?

New Jersey drivers can't ignore all the ads for car insurance savings from companies such as State Farm and Allstate. All the ads make an identical promise that you can save if you change your policy.

But how can every company say the same thing?

All companies have a preferred profile for the right customer that makes them money. An example of a preferred risk might be profiled as a mature driver, insures multiple vehicles, and drives less than 10,000 miles a year. A propective insured who meets those qualifications will get the preferred rates and is almost guaranteed to save a lot of money.

Potential customers who don't measure up to this ideal profile will be charged a more expensive rate and ends up with business not being written. The ads state "customers that switch" but not "drivers who get quotes" save that kind of money. This is how insurance companies can advertise the way they do.

That is why you should compare as many rates as you can. It's not possible to predict which insurance companies will provide you with the cheapest rates.

How do I know if I need professional advice?

When buying proper insurance coverage for your personal vehicles, there really is no one size fits all plan. Coverage needs to be tailored to your specific needs so your insurance should reflect that For example, these questions may help you determine whether or not you would benefit from professional advice.

  • Do I need to file an SR-22 for a DUI in New Jersey?
  • Am I covered by my employer's commercial auto policy when driving my personal car for business?
  • Am I covered when driving on a suspended license?
  • Am I covered when renting a car or should I buy coverage from the car rental agency?
  • Is my cargo covered for damage or theft?
  • Am I covered if I drive in a foreign country?
  • Does my personal auto insurance policy cover using my vehicle for business use?
  • Is my dog or cat covered if injured in an accident?

If you're not sure about those questions then you might want to talk to a licensed agent. To find lower rates from a local agent, complete this form or click here for a list of auto insurance companies in your area. It is quick, free and can help protect your family.

More sites with auto insurance information

More information is available on the website for the New Jersey Department of Banking and Insurance located here. New Jersey drivers can file complaints about a company, read enforcement actions against agents and companies, report car insurance fraud, and read consumer alerts.

Other informative sites include III.org's auto insurance page and this directory of insurance agents in Cranford New Jersey.

Cranford auto insurance comparison

Best coverage at the best price

In this article, we covered many tips how you can save on auto insurance. It's most important to understand that the more you quote, the more likely it is that you will get a better rate. Drivers may discover the best price on auto insurance is with the least-expected company. Some small companies can often insure niche markets at a lower cost compared to the large companies like .

As you go through the steps to switch your coverage, do not buy poor coverage just to save money. There have been many cases where drivers have reduced liability limits or collision coverage only to find out that the savings was not a smart move. Your goal should be to get the best coverage possible at a price you can afford, not the least amount of coverage.

Affordable auto insurance can be sourced on the web in addition to many Cranford insurance agents, and you need to price shop both to have the best rate selection. Some auto insurance companies do not provide online price quotes and many times these smaller companies only sell through independent insurance agents.