How to Know You're Wasting Money for Auto Insurance in Elmwood Park

Did you fall for a flashy sales pitch and buy an underperforming, overpriced auto insurance policy? Believe me when I say there are a lot of people in Elmwood Park just like you who feel imprisoned by their auto insurance policy. You have multiple to buy insurance from, and even though it's nice to be able to choose, having more makes it harder to compare rates.

It's important to do rate comparisons at least once a year because prices are constantly changing. Just because you found the best deal six months ago there is a good chance you can find better rates now. So block out anything you think you know about auto insurance because you're going to get a crash course in the proper way to remove unneeded coverages and save money.

The purpose of this post is to tell you how car insurance quotes work and some tricks to saving. If you are paying for car insurance now, you will be able to save some money using this strategy. New Jersey vehicle owners just need to know the most efficient way to shop for auto insurance over the internet.

Why some people pay less for insurance in Elmwood Park

Consumers need to have an understanding of the factors that help determine the price you pay for auto insurance. Knowing what controls the rates you pay allows you to make educated decisions that can help you get big savings.

The following are some of the factors companies use to determine your rates.

  • Careful drivers pay lower rates - Your driving record has a lot to do with how much you pay for insurance. Even a single speeding ticket can increase rates twenty percent or more. Good drivers tend to pay less for car insurance compared to drivers with tickets. Drivers who get flagrant violations such as DWI, reckless driving or hit and run convictions may be required to submit a SR-22 form with their state DMV in order to keep their license.
  • Add-on coverages can add up - There are a ton of extra coverages you can purchase on your auto insurance policy. Coverages for rental car reimbursement, better glass coverage and motor club memberships are some examples. They may seem like a good idea when talking to your agent, but if you don't need them eliminate them to save money.
  • Having a spouse can save you money - Being married can get you a discount on auto insurance. Marriage is viewed as being more mature than a single person it has been statistically shown that being married results in fewer claims.
  • Teen drivers pay high rates - Teen drivers in New Jersey are known to be less responsible when behind the wheel so they pay higher auto insurance rates. Older insureds tend to be more responsible, file fewer claims and get fewer tickets.
  • Adjust deductibles and save - Coverage for physical damage, otherwise known as comp (or other than collision) and collision, protects your car from damage. Examples of covered claims could be running into the backend of another car, vandalism, and rolling your vehicle. The deductibles are the amount of money you are required to spend if you file a covered claim. The more money you're willing to pay, the less your auto insurance will be.
  • Your credit rating is important - Your credit history is a huge factor in calculating your auto insurance rates. If your credit history is not that good, you could save money insuring your by spending a little time repairing your credit. Drivers with high credit ratings tend to file fewer claims and have better driving records as compared to drivers with lower credit scores.
  • Lower rates with optional equipment - Choosing a vehicle with anti-theft technology or alarm system can get you a discount on your auto insurance. Theft prevention features such as GM's OnStar, tamper alarm systems and vehicle immobilizers can thwart auto theft.

New Jersey auto insurance

Quick Elmwood Park Auto Insurance Quotes

All major auto insurance companies like State Farm and Allstate give pricing on the web. This process is pretty easy as you simply enter the coverage amounts you desire as detailed in the form. After the form is submitted, the company's rating system will obtain credit information and your driving record and returns a price quote based on many factors. Being able to quote online makes comparing rates easy, but the process of having to visit several different sites and fill out multiple forms is repetitive and time-consuming. But it's very important to compare as many rates as possible in order to get better auto insurance pricing.

The preferred way to find better auto insurance pricing uses one form that analyzes rates from a lot of companies. The form is fast, eliminates form submissions, and makes quoting online much more enjoyable. Once the form is submitted, your coverage is rated and you can select any one of the resulting price quotes.

If one or more price quotes are lower than your current rates, you can click and sign and buy the new coverage. This process only takes a few minutes and you will know how your current rates stack up.

To find out what other companies charge, click here to open in new window and enter your vehicle and coverage information. If you have a policy now, it's recommended you complete the form with the coverages just like they are on your policy. This makes sure you will receive rate comparison quotes for the exact same coverage.

These discounts can lower your rates

Car insurance can cost a lot, but you may find discounts that you may not know about. Certain discounts will be applied when you quote, but some must be requested specifically before you get the savings. If you're not getting every credit possible, you are paying more than you should be.

  • Passive Restraints and Air Bags - Vehicles with factory air bags and/or automatic seat belt systems may earn rate discounts of more than 20%.
  • Low Mileage - Fewer annual miles can qualify you for a substantially lower rate.
  • E-sign - A handful of insurance companies will discount your bill up to fifty bucks for buying a policy and signing up over the internet.
  • Save over 55 - If you're over the age of 55, you may be able to get reduced rates.
  • Multiple Vehicles - Buying coverage for multiple vehicles with the same company qualifies for this discount.
  • Anti-lock Brakes - Vehicles equipped with ABS or steering control can reduce accidents and therefore earn up to a 10% discount.
  • Payment Method - By paying your policy upfront instead of making monthly payments you can actually save on your bill.
  • Seat Belt Usage - Using a seat belt and requiring all passengers to use their safety belts can save up to 15% on the medical payments or PIP coverage costs.
  • Federal Government Employee - Employees or retirees of the government may qualify you for a discount with certain companies.
  • Military Rewards - Being deployed with a military unit may qualify for rate reductions.

Drivers should understand that some credits don't apply the the whole policy. Most only apply to the price of certain insurance coverages like medical payments or collision. Even though it may seem like all those discounts means the company will pay you, companies wouldn't make money that way. But all discounts will bring down the cost of coverage.

To choose providers who offer auto insurance discounts in New Jersey, click here.

Are you falling for claims of savings?

New Jersey consumers can't ignore all the ads that promise big savings by companies like State Farm and Allstate. All the ads have a common claim that you'll save big after switching to them.

How does each company make almost identical claims? This is how they do it.

All the different companies are able to cherry pick for the type of driver that makes them money. An example of a preferred risk could possibly be between the ages of 30 and 50, has no tickets, and has a high credit rating. A customer getting a price quote that hits that "sweet spot" is entitled to the best price and as a result will probably save when switching.

Drivers who are not a match for these standards will be charged a higher premium and this can result in the driver buying from a lower-cost company. The ads state "drivers who switch" not "everybody who quotes" save money. That's the way companies can state the savings.

That is why you need to compare as many rates as you can. It's impossible to know which auto insurance company will have the lowest rates.

Much more information about auto insurance in New Jersey is available on the website for the New Jersey Department of Banking and Insurance. Click here for link. New Jersey consumers can file complaints about a company, discover disciplinary actions, get help finding coverage, and read enforcement actions against agents and companies.

auto insurance in Elmwood Park

In the end, you save

You just read a lot of ways to compare auto insurance prices online. The most important thing to understand is the more you quote, the better your chances of lowering your rates. Drivers may discover the lowest rates come from a lesser-known regional company. These smaller insurers may only write in your state and offer lower rates than the large multi-state companies such as .

Budget-conscious auto insurance can be sourced online and with local Elmwood Park insurance agents, and you should compare price quotes from both to have the best selection. Some insurance companies do not offer online price quotes and many times these smaller companies only sell through independent insurance agents.

As you restructure your insurance plan, it's very important that you do not reduce coverage to reduce premium. There have been many cases where an insured dropped liability limits or collision coverage only to find out that they should have had better coverage. Your goal should be to buy a smart amount of coverage for the lowest price, not the least amount of coverage.